The federal government’s
Home Affordable Modification Program (HAMP) and Home Affordable Refinance
Program (HARP) as well as the Home Affordable Foreclosure Alternative
program (HAFA) were originally due to expire on December 31st 2015. The Federal
Housing Finance Agency (FHFA) announced that the popular mortgage refinancing,
modification, and foreclosure alternative programs will be extended through the
end of 2016.
Per the program
revisions homeowners now have until December 31st 2016 to take action and apply
for any of these government-backed programs.
Since 2009 when the
Making Home Affordable Programs (MHA ) were introduced these programs have been
extremely popular with homeowners who are trying to reduce their mortgage
costs and stay in their home or sell to avoid foreclosure.
The Making Home
Affordable Programs will expire on December 31st 2016.
Home Affordable Refinance Program (HARP)
The Home Affordable
Refinance Program, or HARP, was introduced in 2009.
Through this program,
homeowners who may not otherwise qualify for a refinance due to equity loss can
refinance their homes and potentially secure a lower interest rate. Borrowers
can also use HARP to refinance from an adjustable-rate mortgage (ARM) loan
to a more secure and predictable fixed-rate loan.
There are other
refinancing programs available for homeowners in 2015 and 2016. HARP is unique,
According to FHFA HARP is currently the only program that offers
refinance loans to homeowners with no equity. Upside down Borrowers are
often able to refinance through HARP. Traditional refinancing programs are
generally not available to borrowers with no equity.
HARP is limited to
borrowers whose existing mortgage
was sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
Borrowers looking to
apply for a HARP refinance loan need to be current on their mortgage
payments. Borrowers must not have any late payments within the last
6 months from the time of the application, and no more than one late payment within the last 12 months.
The HARP program
expiration date has been extended several times in the past, HARP was
originally scheduled to expire in December 2015, the deadline has been pushed
back until December 2016.
The Making Home
Affordable Programs will expire on December 31st 2016.
Home Affordable Modification Program (HAMP)
The Home Affordable
Modification Program (HAMP), is a key part of the federal government’s “Making
Home Affordable” initiative.
HAMP is designed to help
homeowners who are at risk of potentially losing their properties to
foreclosure, by giving them a more affordable and sustainable monthly payment
on their loan. The program is open to homeowners who have already defaulted on
their monthly mortgage payment, and also to those borrowers who are in
danger of defaulting in the future.
To be eligible for HAMP
in 2015 or 2016, the borrowers existing mortgage loan must have been
originated on or before January 1,
2009.
The deadline for HAMP was
also extended until December 2016.
The Making Home
Affordable Programs will expire on December 31st 2016.
Home Affordable Foreclosure Alternative Program (HAMP)
The Home Affordable
Foreclosure Alternative Program, or HAFA, was launched in 2009. It is one
of the main programs that make up the Obama Administration’s “Making Home
Affordable” program and this program paved the way as well as influenced a lot
of the guidelines for traditional non government backed Short Sale Programs
Effective February 1,
2015 the Making Home Affordable (MHA) Program has increased the HAFA relocation
incentive for qualifying sellers to $10,000.
The updated program
guidelines state that a borrower, tenant, or other non borrower occupant who
live in the home as their primary residence and must relocate as part of the
HAFA short Sale may be eligible to receive a relocation incentive of $10,000.
Like HARP , and HAMP the
deadline for HAFA was also extended until December 31st 2016.
The Making Home
Affordable Programs will expire on December 31st 2016
Call for more information - (866) 306-2115 Ext 301
Diona Miller, Real Estate Broker - CalBRE License 01899288
Call for more information - (866) 306-2115 Ext 301
Diona Miller, Real Estate Broker - CalBRE License 01899288
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