President Obama, in an effort to help the housing market, announced a new plan for those who own homes with declining values. The plan calls for a refinancing of their existing mortgage.
Lake Oswego Real Estate Those Short Get Refinance Relief HARP
In searching the Lake Oswego real estate market, there were 67 Lake Oswego homes currently listed for sale as “short sales” ranging in price from $43,500 to $999,000.
Housing Refinance Program – Home Affordable Refinance Program (HARP)
Are you a short seller? Relief is on the way to refinance but the new rules and other details have yet to be finalized. They should all be worked out by Nov. 15. Banks may be able to start issuing refinanced loans by Dec. 1.
Major Changes include:
- No underwater limits: Borrowers will now be able to refinance regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.
- Eliminating appraisals and underwriting: Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
- Modified fees: Certain risk-based fees for borrowers who refi into shorter-term loans will either be eliminated or modified.
- Extended deadline: The end date to get a HARP refinance has been extended to Dec. 31, 2013.
Important Dates:
- Oct. 24, 2011: President Obama is expected to announce the changes to the HARP program at 5:30 p.m. EDT
- Nov. 15, 2011: Fannie Mae and Freddie Mac will start sending operational instructions to lenders.
- Dec. 1, 2011: Some lenders will begin to take mortgage applications, but it could take additional time for all lenders to incorporate the modified program into their systems.
- Q1 2012: Homeowners with a loan-to-value balance of greater than 125 percent should start to be able to refinance.
Eligibility Criteria:
- The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to: http://www.FannieMae.com/loanlookup/ or calling 800-7FANNIE (8 a.m. to 8 p.m. ET) https://ww3.FreddieMac.com/corporate/or 800-FREDDIE (8 a.m. to 8 p.m. ET)
- The program will continue to be available for loans with LTVs above 80 percent.
- Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months.
Looking TO PURCHASE a short sale?
Want to purchase a short sale? I’d love to be your REALTOR®. Give me a call at 503-804-9685 and I can help.
ALL ABOUT…..Lake Oswego Real Estate. © Copyright 2008-2011. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
