The Home Affordable Refinance Program (HARP) 2.0 is considered one of Obama’s administration a success by their standards and was extended to 2015. Approximately 3 million underwater homeowners were assisted in revamping their mortgages. For this reason, I, personally applaud the Obama administration in their efforts to help these homeowners.
However, it’s just not enough! (to put it mildly)
It sickens me to continually read how funds that were supposed to be allocated to homeowners are being used for anything but “helping homeowners.” Needless to say, such programs as the “$25 billion mortgage settlement, the Hardest Hit Funds awarded to 18 states, the Mortgage Forgiveness Debt Relief Act that expired Dec. 2013 have been all but least advantageous to homeowners. It is disgraceful!
To the remaining distressed 12 million homeowners that were left without a paddle to swim, the passing of the HARP 3.0 could be their only chance to keep their heads above water.
If it is passed, here’s what the HARP 3.0 may promise to deliver to the vast majority:
- Allows homeowners with Subprime and Alt-A loans to refinance. Alt- A and Subprime loans are
- SISA – Stated Income Stated Assets
- SIVA – Stated Income Verified Assets
- Lo Doc – Low Documentation
- No-Doc – No Documentation
- This includes self-employed borrowers using stated income document and have the ability to document income via IRS tax returns
- Homeowners will be able to refinance regardless of the number of times they have refi’d to capture lower rates (This plan may use a loan program like the FHA Streamline Refinance whereby there would be no documentation except 6 on-time consecutive monthly payments).
- A homeowner’s loan does not have to be owned by Fannie Mae or Freddie Mac
- Homeowners that purchased homes after May 31, 2009 may be allowed to refinance under the HARP 3.0.
- May allow homeowners with jumbo loans to refinance up to $729,750.
I researched the internet to find out when legislation would pass HARP 3.0 and this is what I found:
“Grassroots Campaign Underway to Put HARP 3.0 on the Radar
Tue, 2014-02-11 15:20 — Robert Ottone
The Home Affordable Refinance Program (HARP) was recently credited with helping mopre than three million homeowners in adjusting their mortgages. This is a huge success for the American people and can be regarded as one of the Obama Administration’s greatest victories. That established, many are calling for further refining of the HARP program, which, in its current state, is known as HARP 2.0.
Recently, a White House petition has been created in the hopes of providing government individuals with a gauge of the American people’s current opinion of HARP. The petition states:
“During the 2012 State of The Union Address President Obama laid out his plan for a broad based refinancing plan to help all responsible home owners with little or negative home equity. This plan, known as HARP 3.0, is desperately needed by millions of underwater homeowners. It is now two years later and nothing has been accomplished with HARP 3.0. The President, Congress, The FHFA, and other policy makers have failed us. As a reminder of this failure we suggest a HARP 3.0 Count Up Clock be installed in the White House Entrance Hall. Perhaps the embarrassment of this Count Up Clock will urge policy makers to finally Make HARP 3 Happen.”
As of this writing, the petition has only been signed by just over 1,000 individuals. Part of the issue with that could probably be due to the barrier to entry WhiteHouse.gov forces onto those who wish to sign, that being that they must register with the petition site in order to vote. A better system would be connectivity through Twitter, LinkedIn or better yet, Facebook, however; that’s not the case.
The petition also needs 100,000 signatures in order for the petition to receive some form of response from government officials. 100,000 signatures aren’t that many, however; the petition only has until Feb. 27, 2014 before signatures are no longer allowed. Once this date hits, the petition ill either be passed along to governmental entities or will die a slow death in the annals of the internet.
In order to continue the trend of helping millions of homeowners get out from their underwater homes, it’s basically essential that HARP 3.0 comes to pass.”
If HARP 3.0 does not pass, then FHFA will probably issue updated guidelines to the existing HARP 2.0 that may include some of the programs guidelines. However, the White House is pushing for changes using the “ #MyRefi “ a.k.a “A Better Bargain for U.S. Homeowners” Program which is better known as the HARP 3.0
My final words: Only you can make Washington put a rush on implementing the HARP 3.0 program. If you are one of the homeowners who is desperate to save your home, then here’s your chance to have an impact on legislation by following this link and speak out. Let’s make it happen!