By: Anna Cuevas

The Home Affordable Refinance Program (HARP) is now in
version 2.0. This program gives some struggling homeowners an opportunity to
refinance their mortgage at a lower interest rate. HARP is targeted toward
homeowners who previously were not eligible for refinancing due to declining
property values.

To be eligible for HARP 2.0 and a reduction in their
interest rate, the following qualifications must be met:

1.            Monthly
mortgage payments must be current. Within the last six months, the homeowner
cannot have any payments that are 30 or more days late. However, the homeowner
can have one 30-day late payment within the last year.

2.            Loan to
Value and Combined Loan to Value restrictions have been lifted. HARP’s 2.0
revisions remove the LTV and CLTV restrictions previously imposed under the
original program. This applies only to fixed rate mortgages. This is a major
revision to qualification—previously, the loan to value ratio was set at 125%.
With the removal of this restriction, underwater homeowners previously
ineligible can now apply.

3.            As long
as the homeowner is current with their mortgage payments, as defined by #1
above, income verification is no longer required under HARP 2.0.

4.            The
original HARP placed time restrictions on homeowners with a past foreclosure,
short sales, or bankruptcy. That time restriction has been lifted.

5.            And last,
but not least, HARP 2.0 is only available to Fannie Mae or Freddie Mac owned or
guaranteed mortgages.

Homeowners who do not qualify for HARP 2.0 relief,
especially those whose loans are not under Fannie Mae or Freddie Mac, may
receive help under another government initiative, the Obama Refinance Program,
which has not yet been fully disclosed or implemented. While HARP 2.0 does not
provide any relief for homeowners who are in default or have excessive past-due
payments, the interest reduction it can provide to eligible underwater
homeowners can make their mortgage payment affordable and allow them to prevent
a future foreclosure or short sale. While it remains to be seen how many
homeowners will benefit from HARP, future expansion of similar initiatives
outside of Fannie Mae and Freddie Mac loans could broaden the impact of the
government’s efforts to help at-risk homeowners.

David vs Goliath

Loan Modification Guru Reveals How Homeowners Can Challenge
the Big Banks and Save Their Home

Anna Cuevas, known as “America’s Loan Modification Guru,”
has guided thousands of Americans in keeping their homes from foreclosure. A
popular blogger ( and, Cuevas has been
called a “superhero of the loan modification industry” and has been nominated
for CNN’s Heroes. She is the #1 bestselling author of SAVE YOUR HOME Without
Losing Your Mind or Money.

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