While the Home Affordable Refinance Program (HARP) has done a great job at helping people refinance their underwater homes, it has fallen short to reach important segments of the pre-market crash.
The history of the program includes an original HARP, then an improved HARP 2.0 version (the current one).
There has long been talk about a new HARP 3.0 that could reach countless other homeowners in distress, but nothing has been done so far.
It is hard to predict with certainty what the new guidelines will be. However, educated guesses can be made, based on previous releases and talk from Washington D.C.
The biggest change expected to happen is the inclusion of loans not owned by Fannie Mae or Freddie Mac. These loans are known as “ALT-A”, with the most common representative being the “stated income” loan.
HARP 3.0 could finally be a pathway to refinance those high interest home loans without government backing, currently held by banks such as Wells Fargo, Chase and Bank of America.
Homeowners with sub-prime mortgages may also find themselves eligible, as well as loans that were considered “jumbo”, prior to more recent increases in conforming limits.
HARP 3.0 is important if we truly want to correct past and current wrongdoings, and move to a healthier economic future.
I agree that home loans should not have been extended with so little oversight.
But it is infuriating that once granted, refinance is almost impossible. Homeowners are left with only two options: continue to pay ridiculous interest rates on a home that is worth much less than it was purchased for, or default on the mortgage.
There are people that have held on to their homes, despite the loss in market value and despite the financial strain. These people have kept their promise to pay, and have helped their neighborhoods and our economy by doing so. They deserve to be rewarded, not excluded and taken advantage of.
Spread the word on your social media outlets, so that others can join the effort to push for HARP 3.0.
Help give homeowners in need a valid choice – help make their voices heard