The mortgage crisis has rendered the home equity negative, for many a homeowner.And when the value of a home has reduced, which under normal situations would have increased to build up a decent equity, the situation definitely calls for a large scale support. HARP 2.0 program, a module under the broad MHA strategy, was designed for such a support. With this program homeowners can still hope for a new affordable mortgage plan. Normally, finding a lender ready to refinance an underwater home is improbable. This fact only enhances the appeal for such a program.
Borrowers with little to no equity in their homes, too, can take advantage of prevailing low interest rates and other refinancing benefits, through the HARP 2.0(Home Affordable Refinance Program). HARP 2.0 plan is a part of the MHA Program put forth by the Obama administration. Owing to the announcement of an extension till December 2015, HARP 2.0 plan is expected to have more lenders participating for it, which is estimated to benefit more homeowners. Earlier it’s availability was limited till the period of December 2013
HARP 2.0 plan provides relief to different situations. What possible mortgage predicaments could bother borrowers today? Underwater mortgages or credit history or just a financial crunch? The program benefits homeowners with each of these mortgage predicaments:
Homeowners, who can comfortably manage to pay their mortgages but are unable to get conventional refinancing, can apply for the HARP plan to benefit from the prevailing low mortgage interest rates.
Homeowners who are struggling to repay other loans while trying hard to be regular on mortgages can refinance through HARP for a better low cost, low interest mortgage plan. This will help them to save cash every month, which can be utilized to pay off any lapse in payment of other loans. Naturally it will improve their credit rating.
Worried About An Underwater Mortgage? This Situation Can Be Improved Through The HARP 2.0 Plan
Homeowners who fear foreclosure can benefit with this plan. A worrying aspect of a mortgaged home, which has a pending loan amount greater than the free-market value it commands, is that it can lead to a foreclosure if mortgage payment becomes difficult for the borrower. The plunging value of the home prevents the homeowner from selling, unless one is ready to ignore the loss. The HARP 2.0 program helps to bring what is owed more in line with what should be owed, considering the present valuations. So it helps homeowners to secure a new, more affordable and more safe mortgage plan.
To gain from these measures, introduced by the Obama administration, borrowers should know more about the eligibility guidelines and application requirements that would be relevant to their individual situation. To benefit from a team of competent loan refinance experts
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