HARP, The Ins and Outs of Obama’s New Mortgage Refi Plan from the National Association of Realtors

It appears many people are interested in the “new plan” to bail out the housing market.  I have been reluctant to jump on board this one, it is getting to the point of insanity.  We keep doing the same thing over and over again expecting different results.

My opinion on the housing market is: let it correct and leave it alone.  By artificially throwing programs at it, it is only prolonging the pain and preventing the correction from taking place.

The Colonial Revival headquarters of Fannie Ma...
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Apparently CNN is not to excited about this plan either, check out this Article titled “Refinancing Plan won’t help housing market.”

I would love to hear your opinion on this.  Do you think these programs are helping people or making everyone suffer?

Here is the National Association of Realtors article on the new program.  What I am calling  “HARP 3.0”

President Obama announced Monday a plan to ease eligibility rules for home owners who want to refinance to take advantage of ultra-low mortgage rates and lower their mortgage payments. The administration hopes that by broadening its requirements for the Home Affordable Program that about 1 million home owners will now be able to qualify….

What’s changing?

Many of the extra fees to participate in the program have been waived, and home owners’ eligibility won’t be contingent on how far their home’s value has fallen.

Who’s eligible?

  • Home owners with loans backed by Fannie Mae or Freddie Mac can participate. (Home owners can visit: freddiemac.com/mymortgage or fanniemae.com/loanlookup to determine if their mortgage is owned by either).
  • Home owners must be current on their mortgage.

When will it take effect?

The changes could take effect by Dec. 1. HARP also is being extended through 2013 to allow more home owners the opportunity to qualify.

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Realtor. Twin Cities Area specializing in New Construction, Development and Investment Properties.