HARP 2.0 Is a Welcome Relief to Struggling Homeowners

A boom in HARP 2.0 refinances is providing the much needed relief for homeowners who are underwater on their mortgage payments or who are otherwise unable to refinance.

According to the Federal Housing Finance Agency, homeowners taking advantage of HARP have been saving on average a total of $250.00 dollars per month. That may not seem like very much initially, but it can make the difference for many families between being able to keep up with their rent and facing foreclosure.

The program is intended to help those who have been unable to refinance through more traditional means. Homeowners looking to take advantage of HARP 2.0 need not be underwater on the value of their mortgage, but the program does require those seeking refinancing to have a home-to-value ratio greater than 80 percent. The program is designed to help homeowners who bought their home prior to 2009 and who are stuck in the unenviable position of paying for a mortgage that is worth more than the house.

The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury published their monthly report the Housing Scorecard for November and the overall findings are positive. Rising home values and a continued surge in refinancing were among the positive findings in the report.

Moreover, since April of 2009, it has been estimated that as many as 18.2 million homes nationwide have refinanced their mortgage. Many of the refinances have been more traditional and amount to nothing more than run of the mill rate and payment adjustments. Of the 18.2 million refinances, 1.7 million have come from HARP. Investors and real-estate experts credit HARP for playing a vital role in the housing recovery. From the time of its inception in 2009, the goal of HARP was to forestall the foreclosure rate and help communities stay together.

When one house in a neighborhood is foreclosed upon, it generally has a negative effect on the surrounding properties. For obvious reasons, no one wants to live next to houses that are abandoned or where the lawn is not being mowed. These sorts of houses are also notorious for crime and other unwelcome activities. It just looks bad and can bring the home prices of surrounding properties down. Of course, this can have a ripple effect and help propel other homeowners to go underwater on their mortgage.

There is a widespread consensus now that HARP has largely been a success, and it seems wise for all of those who may be eligible to take advantage of this program while they still can. Homeowners looking to see if they qualify for refinancing under HARP 2.0 can fill out and submit an online form. Responses generally come back very quickly.

In closing, struggling homeowners are happy to take advantage of the HARP refinance program and that is why Bethany writes for them. However, some homeowners are not able to take advantage of this mortgage program and that is why FHA streamline loans are available for FHA insured home loans.

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