HARP 3.0 Mortgage Refinance: Beyond HARP 2.0

Bills.com Team
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Bills Bottom Line


Are you underwater and can’t refinance? Take another deep breath. Although there have been a number of proposals, no HARP 3 programs have been approved. Ideas have been offered to improve the HARP 2 program. Others call for a completely new HARP 3 mass-refinancing program that will help all borrowers, not just ones with Fannie Mae/Freddie Mac owned loans, originated before June 1, 2009. If you are underwater and want to save money by refinancing, then learn about the different HARP 3 possibilities.
4.5
/5.0
(88 Votes)

HARP 1.0, HARP 2.0... and now HARP 3.0?

January 2014 Update:  There is still no HARP 3; however, there is some speculation that the new director of the FHFA, Mr. Mel Watt, will more aggressively push for a HARP 3 program. Many of Watt's proposals are similar to ones proposed by President Obama in his #myrefi mass refinance program.

Are you underwater? Even with rising home prices, there are still millions of homeowners who can’t refinance. The HARP 2 program was announced in October 2011, and rolled out in March 2012. Since then, there have been many ideas floated, but no substantial HARP 3 program has been implemented.

The two main problems with the existing HARP refinance program are that:

  1. Borrowers that meet Fannie and Freddie guidelines are still unable to find a lender that will approve a HARP 2.0 loan.
  2. Loans not owned by Fannie Mae and Freddie Mac still do not qualify.

Will there be a HARP 3.0? If there is a HARP 3.0, what form will it take? In order to help you find a refinance loan that fits your need, learn more about:

  • Almost HARP 3 – Improving HARP 2
  • HARP 3.0: Getting a New Program
  • HARP 3.0 and You

HARP 2 Updates

Read the Bills.com HARP 2 mortgage page for the latest updates about HARP.

Almost HARP 3: Improving the HARP Mortgage

One simple idea is to make minor tweaks to the HARP program, making it available to more borrowers with Fannie Mae/Freddie Mac loans. This would not technically be a HARP 3 program, but an "almost HARP 3" program.

The HARP 2.0 program worked along these lines, making important changes in the existing HARP program to expand the number of eligible borrowers. In order to get more borrowers into the program, HARP 2.0:

  • Removed LTV restrictions
  • Eased qualifications for borrowers and types of property
  • Increased cooperation between the mortgage insurance companies and the lenders
  • Increased cooperation by second lenders to subordinate their mortgages

Problems with the HARP 2.0 program:

Stricter Lender Requirements: Even though many borrowers meet the general HARP requirements, lenders are not approving their loans. If approved, lenders offer high interest rates and fees. For example, even though the HARP 2.0 program eliminated the 125% LTV requirement, many lenders created their own stricter underwriting requirements. This includes offering loans only at lower LTV levels, requiring higher credit scores and lower DTI (debt-to-income) ratios than the HARP guidelines require, and limiting certain qualified types of properties.

Lack of competition: Up until March 19 2012, the HARP 2.0 program was open only to the original lenders (current servicers) through a manual underwriting process. The big lenders, who solicited their preferred borrowers, dominated the HARP mortgage loan market.  The March 19 rollout of the automated underwriting systems has increased competition, with many mid-size lenders entering the market. In addition, as attested by comments sent by Bills.com readers, the big lenders have dropped their interest rates. However, the playing field is not level, as Fannie Mae and Freddie Mac granted the manual loans with easier conditions and less warranties and representations, meaning less risk for the lender. This risk factor has driven some lenders into stricter lending requirements and higher interest rates.

Here are some "Almost HARP 3" Ideas

Menendez-Boxer proposed legislation: Senators Menendez (D-NJ) and Boxer (D-CA) have floated ideas for new legislation that would level the field by making the new lender’s risk the same as the original lender’s risk. They also propose eliminating some of the stricter requirements that exist in the automated system. So far, they have proposed their legislation three times with no success.

Shopping and Competition: Not all lenders offer the same rates. It is your job to shop around and look for the best deal. Look for a lender that will meet your situation with a competitive interest rate.

Are you eligible for HARP?


Bills.com can help you find HARP loans. With rates at historic lows, it pays to apply now.

HARP 3.0: Getting A New Program

Many borrowers do not have Fannie Mae- or Freddie Mac-owned or guaranteed loans. Underwater borrowers with loans owned by banks and private investors don’t have an alternative HARP program.

Before the mortgage meltdown, many borrowers who did not meet lenders’ strict underwriting guidelines took non-conventional loans, which were held by the banks or private investors. For example, there were many self-employed borrowers with good, but not always verifiable income, and borrowers whose loans did not meet the conforming loan limits. That means that responsible borrowers who are making their payments on time can’t refinance into a program that will lower their payments and make their mortgages more affordable.

Here are some of the HARP 3 Proposals:

Obama Mass refinance plan: January 2012 President Obama announced a plan to extend the HARP program to new loans not owned by Fannie Mae and Freddie Mac. The plan calls for the government, through the FHA, to guarantee the new refinance loan. Here are some of the main points:

  • Loans must meet the HARP eligibility requirements, but do not need to be held by Fannie Mae or Freddie Mac.
  • A streamline process including a minimum FICO score of 580, and no appraisal.
  • The FHA guarantees the new refinanced loans.
  • Impose a bank tax to finance the cost of the program.

Sen. Merkley’s Rebuilding American Homeownership Proposal: In July 2012, Sen. Merkley proposed a mass refinancing program for all underwater borrowers. His plan called for easy underwriting criteria, no fees, and a rate of 5% for a 30-year loan or 4% for a 15-year loan. (This was before mortgage rates increased in mid-2013). Sen. Merkley’s home state, Oregon, recently expanded their Rebuilding American Homeownership Assistance Pilot program to include a third county in Oregon.

Treasury "Market Rate Modification Proposal": In 2012, there were reports of expanding the HARP program to non-GSE - Fannie Mae and Freddie Mac - loans. One such proposal, the Treasury "Market Rate Modification Proposal" would allow an interest rate reduction to underwater borrowers who meet hardship eligibility requirements and are current on the loan. No progress has been made with this proposal.

HARP 3.0 Mortgage and You

HARP 3.0 - Will a new program happen? So far, there has been no progress to implementing a HARP 3 program. However, with the appointment of the new FHFA director, Mr. Mel Watt, there are expectations for a revision of the current HARP program and maybe even an extension to a full-blown HARP 3 program.

However, take into account two major changes in the housing and mortgage markets:

  1. Home prices increased in 2013. This has helped many borrowers climb out of their negative equity hole, making it possible for them to refinance under a normal mortgage program.
  2. Mortgage rates increased in 2013. As mortgage rates increase, you save less money by refinancing.

Bills Action PlaBills Action Plann:

Where does that leave you? If you are an underwater borrower, but can’t find a refinance plan then take these steps:

  1. Check who owns your loan.
  • If your loan is a Fannie Mae or Freddie Mac loan check out the HARP 2.0 mortgage plan. Find out the exact reasons for the denial. Sometimes it is lender’s overlays, or lack of ability to work with your mortgage insurance company. Even if one lender turns you down, keep shopping.
  • If your loan is a FHA or VA loan, then look into a streamline finance. It can be possible to refinance even if your LTV is over 100%.
  • If your loan is a non-conventional loan, then look for any updates on this page regarding the HARP 3.0 mortgage refinance.
  1. Keep making your payments. One of the requirements for a HARP loan is timely payments. Even though the program allows one late payment (30 days) in the second half of the 12 months, many lenders will not approve loans if there are any late payments during the entire year preceding the application.
  2. If you can’t make your payments, then look into a modification, including the HAMP program or a streamline modification.
  3. Bookmark this page and watch for updates on the HARP 3 program.
4.5
/5.0
(88 Votes)

67 Comments

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  • 35x35
    May, 2013
    Chad
    I purchased my primary residence(condo) in 2007 and since moved out of state. I converted the underwater principal residence to a rental property in 2009; just on taxes not with the lender, but I've been current on mortgage since I purchased. Will this property qualify for refi under HARP 3.0 since its a privately owned mortgage thats been converted to a rental?
    0 Votes

    • 35x35
      May, 2013
      Bill
      The short answer is, "We don't know."

      The longer answer can be found in the original article above. HARP 3 is an idea, and until Congress gets a bill to sign before the President, we will not know the details. Send messages to your elected representatives to let them know how you think the HARP 3 should be structured.
      0 Votes

  • 35x35
    Apr, 2013
    B
    If this passes....HARP 3.0 still will NOT help people that are not backed by Fannie or Freddie. Who the hell are the idiots creating this crap.
    2 Votes

  • 35x35
    Apr, 2013
    N.
    Is it true that rates for HARP 2.0 loans are generally higher than conventional fixed rate loans? If so, what would the normal difference be?
    0 Votes

    • 35x35
      Apr, 2013
      Bill
      Rates vary depending on the borrowers FICO score, DTI, type of property, geographic region. Just as there is no one conventional fixed rate there is also no one HARP 2.0 rate. In general, HARP rates are higher and part of that has to do with the lack of options some HARP borrowers face. I recommend that you shop around for the best rates that you can get for your particular situation.
      0 Votes

  • 35x35
    Apr, 2013
    heather
    Would love to refinance. Free up some money so I can fix up my now falling apart underwater home. However I refinanced my first mortgage on Oct. 2009, so here I sit suffering trying to continue to keep my bills up to date.
    5 Votes

  • 35x35
    Mar, 2013
    Andres
    I was reading that the new HARP 3.0 is going to require that your loan be owned by Freddy Mac or Fannie Mae? We would be back to square one with many responsible homeowners out of the loop.
    1 Votes

    • 35x35
      Mar, 2013
      Bill
      Until Congress writes, and the President signs any HARP 3 legislation, we will not know which loans are eligible and which are not. If, as you suggest, HARP 3 includes Freddie and Fannie loans only, a large number of homeowners would be excluded. Contact the elected representatives in your state to let them know where you stand on this issue.
      1 Votes

  • 35x35
    Mar, 2013
    Matt
    3/14/2013 just tried to refinance upside down about $40,000 but have a conventional loan plan and credit score of 583 been in my job for 22 years and lived in my house for 19 years and the interest rate is at 7% would love if some company could help out in the future. Medical cost with a wife and two kids and one income is what started the downfall plan on staying in my house for years to come
    0 Votes

    • 35x35
      Mar, 2013
      Bill
      If your loan is not owned by Fannie Mae or Freddie Mac, then there is currently no program for a conventional underwater loan. In some areas housing prices have begun to rise. Keep on eye on your home's value, as in increase in value could expand your options.

      I also recommend that you keep tabs on the political developments regarding a potential HARP 3 mass refinancing program.
      1 Votes

  • 35x35
    Mar, 2013
    gary
    Please eliminate the June 1, 2009 origination road block. It's arbitrary and if financial experts couldn't predict housing collapse how was it possible for home buyers at that time too know the home they were buying was going to lose significant value? Once again, big money gets their money back and Joe Homeowner loses his, and that's hypocritical republican BS at its normal.
    7 Votes

    • 35x35
      Mar, 2013
      Craig
      I have the same problem. My Freddie Mac owned loan was bought 5/31/2010. My lender, Wells Fargo was willing to do a refi then, when Chase was willing to postpone my HLOC. But now Wells Fargo says no to another refi and no lender will combine the two loans. Using Zillow's "market value" I'm upsidedown by about $60K.
      2 Votes

    • 35x35
      Apr, 2013
      Tony
      I have the same issue. Took out my current mortgage in 10/2009 - made every payment on time or early, but am at 5.375% on a 30 year. Would like to get into a 15 at today's rates (somewhere around 2.75 - 3%), but due to high LTV (like 97-98%), I have no options. At what point will the people that did things the right way be allowed to reap some of the benefits? As Gary stated, the June 1, 2009 date is really a made up date pulled out of the air. Any talk about this date being removed in HARP 3.0?
      3 Votes

  • 35x35
    Feb, 2013
    John
    Hello, I live in Colorado and I have a home with a first and second mortgage. Both mortgages were taken out at the time of purchase and both are interest-only. I would like to change them to stable fixed-rate mortgages with today's low loan rates. The first is above conforming level of 417K, and the combined LTV is underwater. The loans have been sold many times. Payments for the 1st go to Wells Fargo. GMAC gets payments for the 2nd. I have never been late on a mortgage payment with either lender. Do I have ANY options using ANY lenders anywhere?
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      If your loans are not Fannie Mae or Freddie Mac loans (nor FHA or VA), then there is not a refinance program for your underwater loans. Keep updated on our HARP 3 program for any new programs.

      Interest only loans are particularly dangerous, because you are not building up equity and are left with fluctuating payments and generally fluctuating interest rates.

      Any new payment structure might have higher payments, unless you are switching from the interest only to principal and interest payments.Your best option today is to check with your current lenders regarding a loan modification. Start with your first mortgage holder that has a higher balance. Although lenders are generally reluctant to change mortgage terms unless they feel that you are in danger of defaulting, try to convince your lender that the current loan is a high-risk loan and not in the best interests of both yourself and the lender.
      0 Votes

  • 35x35
    Feb, 2013
    Ed
    I have been in my home for 20 years. Refinanced in Nov. 2008. Owe less than 50% of the value of my home. Never been late on any payment and have 700+ credit rating. Income is significantly less than it was 5 years ago. My loan is not backed by Freddy and Fannie. My payment is about 70% of my income, and I have no other debts. What can I do to lower my interest rate/payment?
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      At this time, there is no good solution to your dilemma. Unless there is a HARP 3.0 program passed, your debt-to-income ratio will keep you from refinancing. Even under an expanded HARP 3.0 (and I am speculating, as we don't know the form it will take, if it comes into being), your DTI could prevent you from qualifying.

      The only way I can think of to your reduce your monthly costs, as things stand, is to sell your home and move to a new residence with a lower monthly cost. I realize that is likely not a desirable solution.
      0 Votes

    • 35x35
      May, 2013
      Jason
      I am almost in the same boat. Credit Score is 750+(never a late payment, ever), LTV is 68%, and I have Fannie Mae on my side.LOL My escrow closed on 6/26/2009. The problem is my DTI is 55. I am self employed and while trying to gain the maximum benefit allowed by the IRS, I am now getting screwed by the banks.
      0 Votes

  • 35x35
    Feb, 2013
    Anthony
    I've been trying to get help with my private investor loan! Tax payers bail out the banks! And we get nothing! I'm in this mess because of the bank corruption! BS!
    2 Votes

  • 35x35
    Feb, 2013
    Tim
    The problem I'm running into for qualifying for a HARP 2.0 refi is that I already did a HARP 1.0 refi in November 2010, and the stipulation as explained to me is that in order to qualify for HARP 2.0, I had to be in my current mortgage by May/2009. I bought my property in Sep/2007 BUT entered my current mortgage in Nov/2010. Will HARP 3.0 make it possible for me to be eligible (assuming I meet all the other conditions) if I did a HARP 1.0 in Nov/2010?
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      None of the HARP 3 proposals we have seen so far include borrowers who completed a HARP loan already. It is certainly possible the proposed HARP 3 legislation may be expansive enough to include borrowers such as you, but it is too soon to tell how likely it will be.
      1 Votes

  • 35x35
    Feb, 2013
    Kevin
    I have been frustrated since Harp went into effect. I have a Jumbo Mortgage $420,000 taken 6 months before the jumbo limit moved to $417,000. When the move was made my mortgage man didn't see much value in a refinance to become conventional. Now 7 years later I am still stuck with a 5.5% mortgage and cannot take advantage of Harp due to the timing and rules. With the election over the economy starting to improve my fear is that no adjustment for someone in my situation will happen. Owe $350,00 but am still underwater - any hope at all????
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      I understand that your loan is not a Fannie Mae or Freddie Mac conforming loan (or super-conforming/high cost area jumbo loan). Check with your lender or a different lender, as well as the online Fannie Mae and Freddie Mac sites to verify if your loans are owned by one of those institutions. If not, then unfortunately there are no real alternative for refinancing underwater loans. Keep updated regarding the value of your home and the HARP 3 proposals.
      0 Votes

  • 35x35
    Feb, 2013
    Latrice
    Can you please help me with a problem? I have a mortgage that is neither Freddie, Fannie, nor an FHA home loan. I am now 3 months behind on my mortgage. I went to my bank two years ago and they reduced my interest rate for two years to 2%, which is suppose to increase this year but I haven't received the new documents yet. Should I apply for HARP?
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      You won't be eligible for a HARP loan, under current guidelines, because your loan is not a Fannie or Freddie loan. I suggest that you first speak with your bank, as soon as possible. You can also seek free counseling through Hope Now, at 888-995-4673. They will help you explore alternatives to foreclosure.
      0 Votes

  • 35x35
    Jan, 2013
    Rosa
    We own a home in Las Vegas, NV. We were living there for about a year after we purchased the home but with my husband losing his job and unable to find work, we decided to move back to California. We were fortunate that he was able to find a job within a month after we moved back and has been working since. We have been renting the property for 3 years now but we pay $500 out of our pocket. We are current on our mortgage, we have never been late, and we have excellent credit. As many of you, we are underwater by about $50,000.00. We have tried qualifying for the HARP 2 but they told us we don't qualify because it's not owner occupied. We were told that we can try and refinance but that didn't work since we are underwater and our home is not appraising to what they require to qualify.

    Will there be any program that may be able to help us in the near future?
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      The best people to answer your question are our congressional representatives in Washington DC. Whether Congress considers a HARP 3 law a priority in 2013 depends, in part, on the encouragement homeowners like you give your representatives.
      0 Votes

  • 35x35
    Jan, 2013
    david
    Do I qualify for HARP 2.0 if I have been delinquent on a completely different mortgage that is also backed by Freddie?
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      David, you are not disqualified from a HARP 2.0 loan under Fannie Mae's or Freddie Mac's rules, but you may not find a lender willing to approve you for a HARP loan. Lenders often have overlays, which are lending requirements that are stricter than the general program guidelines.

      I suggest that you contact your current servicer. They may accommodate you better than a new lender would. I also suggest that you contact your servicer on the delinquent property, if that payment is causing financial stress. If that loan is Fannie or Freddie backed, he may be eligible for a HAMP modification.
      0 Votes

  • 35x35
    Jan, 2013
    Sam
    My house is underwater, and I refinanced in April 2010. One of the eligibility requirement of HARP 2.0 is, "mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009," which according to my mortgage company precludes me from refinancing again under HARP. Will HARP 3.0 help me?
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      The answer to your question depends on whether Congress takes action to get a HARP 3 bill on the President's desk and, if they do, what the bill contains. Contact your representatives in Washington DC to encourage them to move forward on HARP 3 in a way that helps you.
      0 Votes

  • 35x35
    Jan, 2013
    Lana
    I own a townhouse which is underwater with my first and second mortgages. I have been trying for the past 4 years since President Obama took office to modify my first mortgage. My bank, HSBC put me on a trial modification program with reduced mortgage payments for 4 months, requested I resubmit the application, than denied it. They also requested the difference and put a late payment on my credit score. Since I always make timely payments I requested they remove it and they did. Than I proceeded with trying to refinance with Harp and Harp 2. I have a very good credit score but I get excuses like Fannie may insured my loan after May 2009. The latest excuse not to refinace my loan is because my credit cards stay maxed. Well that sounds about right. I am drowning in debt and cannot get any help. Just because I pay my bills on time does not mean I am not struggling. I told the financial institution that gave me that excuse, maybe if you refinanced my mortgage to reduce my mortgage payment my money would be made available to lower my credit card balances. I just sent a letter this week to my senator, Chuck Schumer of NY for directions on how I can get help with refinancing my mortgage. These financial institutions have found a way not refinance customers who pay on time, because they will lose money by a lower interest rate. I am at the end of my rope, but I will continue to try until my mortgage is refinanced with a lower interest. Note, my mortgage payment has increased in the past 2 years because of higher property taxes, so things have only gotten worse. If anyone has a suggestions of what I can do, I would sincerely appreciate it!!
    1 Votes

    • 35x35
      Jan, 2013
      Bill
      At the moment, I don't believe there is a program to help you. The fact that you're underwater limits your options. HARP won't work, due to your loan delivery day. I think it's great that you're contacting your elected representatives. If enough people in your position make the effort to shake the tree, perhaps some positive legislation would be forthcoming. It certainly is possible that a HARP 3 program will be released in 2013.
      0 Votes

  • 35x35
    Dec, 2012
    Lonnie
    When we got our loan our banker recommended a 80/20 loan (because of higher interest rates on a jumbo loan). Will Harp 3 allow people who built their homes with a second mortgage to roll the two mortgages together and refinance?
    1 Votes

    • 35x35
      Dec, 2012
      Bill
      There are lots of rumors flying about whether HARP 3 will happen and what it may contain. However, I have not heard talk about combining seconds into a new first mortgage. I am not saying it could not happen, but, so far, I have not seen it included in any proposals.
      0 Votes

  • 35x35
    Dec, 2012
    Nick
    Viva HARP 3.0, Viva America! Harp 3.0 should be law, it is for the hardworking Americans that have been underwater and paying their mortgages at above a market rate for the past 4 years.... all I want is today's fair market interest rate! I am not asking for a hand out, a stimulus check, a bail out, a short sale, or to unload my underwater house on the bank... why can't Bank of AMERICA treat me with the same honest respect???? Why can't BofA be man enough and stand up to it's name... Bank of AMERICA? HARP 3.0 should be law to protect against this interest rate profiteering and the continuation of foreclosures (which is where I am headed out of frustration from BofA and their lack of care for America).
    22 Votes

    • 35x35
      Jan, 2013
      Laurene
      I am a middle class typical individual who manages their debt, home poor and needs relief. The HARP 3.0 is my only hope to keep my house. It feels like it's those of us who are good stewarts, pay their bills, have integrity and follow through with all of their responsibilities that are being the last to be considered. We need help!! We are employed and living pay check to pay check. I pray congress can get this HARP 3.0 program through. It's my only hope!!
      3 Votes

  • 35x35
    Dec, 2012
    Mimi
    My mortgage servicer, Chase Bank, refuses to approve me for a HARP refinance and they falsely stated that I do not meet Federal HARP guidelines. I have complained to the OCC and they have closed my case based on Chase's response that Freddie Mac did not own my loan prior to 6/1/09. However, it is public knowledge that Freddie Mac did own my loan prior to the 5/31/09. However, afterwards, Chase allowed me to apply for a HARP loan, but now Chase denied my HARP application because they stated that my mortgage is $421k, which is not true based on my mortgage statement, and the maximum HARP mortgage value is $417K. I know that this is not true because I have a multi-family property in NYC-- a high property sales/value/tax area. Nonetheless, I offered to bring money to closing. Chase told me no because my original mortgage amount exceeded $417K, and gave the example that even if I paid $100K on my principal, I would not qualify due to Federal HARP regulations--not their policies. Please tell me that I have a recourse? P.S. (1) I would like to stay with the same mortgage company (I need a CEMA loan) to avoid paying NY taxes on the entire loan and (2) I do not have 20% equity to qualify for a tradition refinance.
    0 Votes

    • 35x35
      Dec, 2012
      Bill
      I sympathize with your frustration. It certainly is not clear why you are ineligible for a HARP loan, however only a lender that reviews the actual documentation can determine your eligibility. The lender can verify with Freddie Mac the delivery date. Recently The maximum amount of loan is determined by the Conforming Limits set at the time of the loan. The $417,000 limit is the standard limit for a one-family unit. Check with your lender the limits for your type of property, based on the time you got the loan. (There were higher super conforming limits during 2009, but you will have to check your area). You can shop around for a HARP loan and don't have to stay with the same lender.

      Since the NY CEMA loan is a specific product , I recommend that you speak to different lenders and see if you can qualify.
      0 Votes

  • 35x35
    Dec, 2012
    Jeff
    Back in August 2010, Bank of America called me and offereed to help me refinance my loan through HARP1. I had an adjustable at that time and I thought that would be a wise move since I had no idea what interest rates were going to do. Not so much. I'm locked in for 30 years at 5.5%. Seems good but 2 years later, rates are currently half that. I'm struggling and have called back BofA and various lenders to see if they can help but they can't. Because my loan was after 2009 and I've already taken advantage of HARP1, I don't qualify for more HARP help. My question is, will I ever be able to take advantage of future HARP programs to lover my interest rate? Thanks
    3 Votes

  • 35x35
    Dec, 2012
    James
    If HARP 3.0 is put in place, will someone who did a previous HARP loan be excluded still? I know nothing is in place yet, but what do you think will happen?
    1 Votes

    • 35x35
      Dec, 2012
      Bill
      Impossible to say. As I write these words, the President and leaders in Congress are negotiating to avoid the fiscal cliff, which seems to be dominating all of the attention of our elected representatives. We will know how high a HARP 3 plan is on Washington's agenda if and when the immediate crisis is resolved.
      0 Votes

  • 35x35
    Dec, 2012
    elaine
    I'm praying for a harp 3. My loan fits all requirements. If it doesn't pass next year I will walk away from my home. Harp 2 non applicable to my situation.
    3 Votes

    • 35x35
      Dec, 2012
      Bill
      If it comes to seriously considering walking away from your home, make sure you understand your state’s no-recourse laws regarding the mortgage deficiency balance.
      3 Votes

  • 35x35
    Dec, 2012
    Eric
    I apparently refinanced on 6/11/09 to 5%. I can refinance now and save around $200 per month but unable because its 11 days past deadline. I have been current on all my payments but no one will refinance because my Townhomes value is now below what I owe. Will 3.0 be able to help me refinance? I have a credit score of over 800 but still no one will refinance me...
    0 Votes

    • 35x35
      Dec, 2012
      Bill
      I assume that you're in a negative equity position, if you're seeking a HARP loan but can't find a willing lender. Unfortunately, as you noted, you missed the cut-off. While it is possible that the cut-off date will be extended, there is no way to know. It is not clear that there will be any HARP 3, though there are many proponents. Keep checking back to follow new developments.
      0 Votes

  • 35x35
    Sep, 2012
    michael
    I refinanced my home in 2005. The mortgage company sold my loan to citi mortgage that year. Citi mortgage held my mortgage and did not sell it to Freddie Mac until 2010 making me ineligible for HARP 2.0, due to the 6/1/2009 deadline. I bought the house in 2001. I am being denied for something I had no control over and I believe is unfair to me. How was I to know Citi mortgage was going to hold my loan from Freddie Mac until 2010? I guess that's what you get for making all of your payments on time for 11 years? What do you think about this? Any suggestions?
    13 Votes

  • 35x35
    Sep, 2012
    Pretzel
    Wow as a home owner this is awsome and even with my situation I would pay a point more to donate that point to this program
    1 Votes

  • 35x35
    Sep, 2012
    Anne
    I am eligible for HARP 2.0 as per published guidelines, and cannot get a HARP re-fi. It appears Fannie Mae automatic underwriter will not approve my loan without an appraisal waiver, and therefore lenders will not touch the loan. I have good credit, never missed a mortgage payment, and am 75% underwater. I meet the HARP 2.0 guidelines, and I don't see anything in HARP 3.0 to help me.
    0 Votes

    • 35x35
      Sep, 2012
      Bill
      If, the Menendez-Boxer Bill does pass into law, there might be more lenders offering HARP loans to borrowers who previously were unsuccessful obtaining a HARP refinance.

      If you are eligible for a HARP loan, but unable to qualify due to lender overlays (stricter underwriting guidelines), then I recommend that you keep shopping around.
      1 Votes

    • 35x35
      Sep, 2012
      Kirk
      There are several lenders who offer HARP loans without an appraisal waiver.
      1 Votes

    • 35x35
      Sep, 2012
      Randy
      I'm a Broker in Ca. and there are lenders who don't have as strict of overlays as others.
      5 Votes

  • 35x35
    Sep, 2012
    Pedro
    I've been told by my banking institution that I do not qualify for HARP 2.0 because 50% of my loan is backed by Fredie Mac and 50% by my banking institution (i.e., BBVA). My interest rate is currently 7.3% and I'm underwater close to $70k. Never missed a payment on my mortgage and have excelent credit. Is this correct? Do my loan has to be completely backed by Freddie Mac for purposes of using HARP 2.0? Or will I be able to use HARP 2.0 even if part of it is backed by Freddie Mac(i.e., 50% Freddie Mac and 50% BBVA)? Can anyone help?
    0 Votes

    • 35x35
      Sep, 2012
      Bill
      Your lender should be the most accurate source of information regarding the ownership of your loan. I suggest that you speak to another lender, who can verify if Freddie Mac owns your loan. I suggest that you also look up your loan at the Freddie Mac site to verify if Freddie Mac owns the loan. Please, keep our readers informed regarding your progress.
      0 Votes

  • 35x35
    Aug, 2012
    Pamela
    Our problem is that we meet every HARP 2.0 qualification except the date. The cutoff date appears to be 6/1/2009. However our loan was secured 10/30/2009 at almost 5%(4.875%) We have perfect credit and simply can't refinance because of the date issue. Our home is under water approximately $70K. Will there ever be help for people like us?
    6 Votes

    • 35x35
      Aug, 2012
      Bill
      It currently seems unlikely that the HARP program will be changed. However, it is certainly worthwhile to follow the news and Bills.com will keep its readers informed about all updates and changes made in the HARP program.

      There is one program, Sen. Merkley's Rebuilding American Homeownership that was proposed to the public in late July 2012. The details have not been completely release and the proposal may not be passed in law. However, it is a far reaching program that will include many loans not presently eligible for a HARP refinancing.
      0 Votes

    • 35x35
      Sep, 2012
      john
      It's unlikely. The problems in the market with lending practices were already fixed by 2009. You went in knowingly and would have been given full disclosure. HARP is for people who were disenfranchised by the industry in the early/mid 2000s. 5% isn't a bad rate historically and in 2009 the housing prices had already dropped from their highs. You surely thought you were getting a deal. HARP is a special program for people who were taken advantage of.
      2 Votes

    • 35x35
      Oct, 2012
      Karin
      I understand where you are coming from about HARP 2.0 being for people who didn't see the housing bubble colllapsing. We are in the group as well, but are not eligible for HARP 2.0 either because of the date. We went into contract on a house back in November of 2008, but b/c of bank issues and construction slow downs, we did not close until September 2009. We tried everything we could possibly think of to not buy the house because it had already lost value since the time of contract, but unfortunately we were stuck in the contract at the original price (builders definitely know how to cover themselves for this type of situation). Anyway, we are unable to refinance at this point because of the June 1, 2009 date and I feel like we should be eligible as well We have a freddie mac loan and meet every other requirement, so it's frustrating that we are missing out on significant savings every month just because of a date limitation. I so hope HARP 3.0 or whatever they end up calling it allows people like us to refinance. We will never be able to do a traditional refinance because our house has lost at least 35% of it's value.
      3 Votes

    • 35x35
      Nov, 2012
      Larry
      I feel your pain. We refi'd in March 2009 but FM didn't take over the loan until June 1st 2009, ONE LOUSY DAY after the cutoff. Coincidence? So our rate isn't all that bad, but HARP would save us $250 a month, which ain't hay. Guess I'll have to hope for a HARP 3.
      0 Votes

  • 35x35
    Jul, 2012
    Fred
    What is the latest buzz on HARP 3? I hear conflicting reports. Some make it sound likely to happen and others say that nothing is going to happen.
    0 Votes

    • 35x35
      Jul, 2012
      Bill
      It seems that momentum is building for expanding refinance opportunities to those who've been shut out of the market to this point. However, it is not inconceivable that gridlock will lead to nothing new emerging.

      All you can do is to keep following the news. If something concrete is put in place, it will be big news.
      2 Votes

  • 35x35
    Jun, 2012
    Deborah
    There are a lot of people that have loans through places like US Bank that were encouraged to take out a loan to refinance and are owned by US Bank or the like. These loans are considered Equity Mortgage loans and are fixed rates at 6 % or more and are not covered by any of the government programs. These homes are upside down and do not qualify for any help whatsoever. The homes will not appraise for the high amounts of money that was loaned at the time and all of these people deserve to have a lower interest rate too. If there are government programs for some then there should be one to help the others too. We all pay taxes and we should all have equal access to government programs. Politicians need to help out all of their constitutants.
    13 Votes

  • 35x35
    Jun, 2012
    Karen
    We are the people. We need to petition Obama. We are homeowners. We cannot wait any more. Can any lawyer or anyone who knows how write a petition? We need to send the petition to www.whitehouse.gov. Please!
    14 Votes

    • 35x35
      Jul, 2012
      Toni
      I totally get the frustration because I am in the depth of it. I cannot refinance because I have a solid average credit score and the bank I am with wants an excellent score. I don't get it.

      But as far as HARP 3.0, petition Congress because it those men and women who will drag their feet because it's election year and they will because they can and Obama doesn't have any power with them. The entire situation just sucks for everyone in need of refinancing!
      0 Votes

    • 35x35
      Jul, 2012
      Bill
      Did you check a different lender or a FHA loan? Of course check to see if the rates and fees make your refinancing worthwhile.
      0 Votes

    • 35x35
      Sep, 2012
      D
      I have two mortgages with SunTrust Bank for the past past seven years. One is a Conventional Mortgage with an Interest Rate of almost 7%, and the Second Mortgage is at 11.50%. Due to the fact that my house is underwater I cannot get qualified for a refi or HARP loan? Will I be qualify for the HARP 3.0 loan? My loans are not backed by Fannie Mae or Freddie Mac.
      0 Votes

    • 35x35
      Sep, 2012
      Bill
      There is no HARP 3.0, until new a new law is put in place. It is not clear what law, if any will pass. All you can do is keep your eyes on the news and see what develops.
      0 Votes