Help for "upside down" homeowners
The federal government is looking at how it could help a greater number of homeowners who owe more than their house is worth, refinance at today's low rates.
The Federal Housing Finance Agency has been reviewing a program launched two years ago to see if it can be expanded so more homeowners could qualify. The Home Affordable Refinance Program, or HARP, allows people whose homes are underwater/upside down by as much as 20%, to refinance their mortgages at lower interest rates. However, there are still a large number of people who currently do not qualify for the program.
The program currently only covers (the refinance of) mortgages created before June 2009 and owned or backed by government-controlled mortgage buyers Freddie Mac and Fannie Mae. Borrowers also must be current on their payments. As of July, 2011, more than 838,000 homeowners had refinanced through the program, but officials had hoped at least 4 million Americans would take advantage of the program.
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