HARP

Posted by kevin on February 18, 2016 under Foreclosure Blog | Be the First to Comment

The HARP program allows certain homeowners who are current on their mortgage loan but underwater,the ability to refinance at a low interest rate. The loan must have closed prior to May 31, 2009 and is owned or guaranteed by Fannie Mae or Freddie Mac. The LTV (loan to value) must be greater than 80%. Current means no 30 day + payments in the last six months and no more than 1 late payment in the last 12 months.

The program is scheduled to sunset on December 31, 2016. It is not expected, at this time, that the program will be extended.

The FHFA is advertising in selected states advising people to check their eligibility and go forward before the deadline.

FHFA estimates that there are 13,800 borrowers in NJ who are eligible for HARP refinancing and about 400,000 nationwide.

If you fit into the criteria listed above and want to reduce your interest rate, check with your lender or servicer to see if they participate in the program.