Falling home values are cause for concern for millions American homeowners, mortgage lenders, and the federal government.
The Obama Administration has announced Making Home Affordable, a program that will help 7 million to 9 million Americans make their mortgage more affordable and avoid foreclosure.
Know Your Options
The Making Home Affordable initiative includes several programs. The Home Affordable Refinance Program, (HARP), is one such program. HARP is a mortgage refinance program for homeowners who have fallen behind on their mortgage payments and are unable to take advantage the low interest rates. This program can also be used to help borrowers change from a risky loan such as a negatively amortizing adjustable into a stable, 30-year fixed rate.
There are many eligibility requirements to the HARP program. However, the most important requirement is that your loan be owned by Fannie Mae and Freddie Mac. Additionally, you must work directly with your lender (the company that currently service your loan).
HARP Refinance Program – Borrowers who want to know if they are eligible for HARP must contact their lender. The Making Home Affordable website has general information on HARP and links that will allow you to check if your loan is Fannie Mae or Freddie Mac-owned.www.makinghomeaffordable.gov/loan_lookup.html.
Your income documentation will be required before your lender will offer you a loan. PMI Mortgage Insurance Co. provides a helpful guide.
Form for mortgage-assessment www.homesafepmi.comYou can also use the form to input any information that your lender might require.
The backlog of requests can make it take 60 to 90 minutes to get a decision. Don’t be surprised if your request is not answered immediately. Follow up often.
