Own a house that is "under water", "upside-down," in other words, you owe a ton more than it's worth?
There are millions of homeowners who are "under water" on their mortgages and think there is no chance of refinancing - but wait, there may still be hope.
A few weeks ago, the government announced major changes that could help more than 1 million borrowers take advantage of the currently low interest rates, and in turn, lower their monthly payments.
I know, I know---you have heard this before. However, this may be the light at the end of the tunnel. Changes to the Federal Home Affordable Refinance Program or HARP allow homeowners to refinance into low mortgage interest rates, even if the property has decreased in value. 9 out of 10 of eligible Homeowners fail to take advantage of this government program.Established in 2009, for Fannie Mae and Freddie Mac, the Home Affordable Refinance Program provides an option for homeowners to refinance "Under Water Mortgages". A HARP Refinance addresses situations where the homeowner's property value has fallen, causing them to no longer to qualify under traditional underwriting criteria. Homeowners with a loan owned by Freddie Mac or Fannie Mae have the opportunity to refinance with any participating lender as long as the resulting loan is less than 125% of the current property's value.
How to find out if your eligible for HARP?
Find out if Freddie Mac or Fannie Mae own the note on your home. Keep in mind they may own the note, but Chase or Wells Fargo may service the loan (typically, the mortgage company providing the statements and accepting the payments is only providing the service of billing, statements, customer service, etc.). Most home owners do not know who "owns" their mortgage loan. Home owners receive their monthly statements, and make their monthly payments to their mortgage company. This is usually not the company that provided the funds originally to make the loan.
Go to Fanniemae.com.
Be sure to enter your address exactly as it appears on your original loan documents.
If the note is owned by Fannie, it will say "Match Found."
Your home loan must have been sold to Fannie Mae/Freddie Mac before June 1, 2009.
The loan-to-value ratio must be more than 80 percent.
You must be current on your mortgage payments for the last 6 months. You can't have more than one late payment in the last year.
You must be able to afford the refinanced mortgage payment.
It must be your primary residence.
Good luck. And if you need any help finding a home in, selling your home or have any real estate related questions about any propety for sale in San Diego, please don't hesitate to call or email me.