New HARP 3 Refinance Program Proposal

by Gregory in Hemet, CA, Javon in Atlanta, GA, Gary in Waldorf, MD, and...

December 2012: New White House HARP 3 refinance program proposal! It's no secret that mortgages not backed by the government need a way to refinance into lower interest rates. Making Home Affordable Refinance (HARP) has refinanced 1.5 million underwater mortgages. Yet President Obama's newest HARP 3 proposal will benefit 12 million homeowners, many who are locked out of the program because of home loans not backed by Fannie Mae or Freddie Mac!

5 Underwater Homeowners Ask Kate for HARP 3 Refinancing Update

Meet the following 5 homeowners asking for underwater refinancing updates.

Then I'll provide you a free, super-quick, and easy way to tell the White House that you want a streamlined HARP 3 refinance program free of red tape. It's also crucial to mention that you expect the plan to be open to all homeowners, not just those with Fannie Mae or Freddie Mac mortgages!

1. Javon from Atlanta, Georgia: Hi Kate, Have you heard about any movements regarding Harp 3.0?



2. Gregory G. from Hemet, CA: Is HARP 3 a joke or will it get approved? I am a veteran who will not be touched by any refinance company because I have a 1st and 2nd that is underwater but have never missed a payment. Is there help on the way or will I just be stuck because of this fiscal cliff thing? I am a 100% disabled Veteran on a fixed income. What would be my choices?


3. C. Pierce: Have there been any recent updates on when Harp 3.0 could possibly pass?


4. Anonymous Homeowner: Do you think Harp 3 will go into effect anytime soon?


5. Gary H. from Waldorf, Maryland:
   
   • What's the probability of HARP 3 passing Congress?
   
   
   • Will there be any principal reductions, including equity loans?
   
   
   • Will the program be limited to banks such as JP Morgan, Citi, and Wells Fargo mortgage holders?

My answers follow in a moment.

Newest HARP 3 Refinance Program Proposal

This version of President Obama's proposal is simple! Expand the opportunity for refinancing into a lower interest rate to millions of homeowners by cutting the red tape.

No upfront fees! Banks will need to become more competitive. Most households could save $2600 a year!

Homes mortgaged for more than appraised values do not create a problem. In fact, the program will not ask for appraisals.

Homeowners can expect an efficient and hassle-free process. This means no income tax records!

In case you're wondering, President Obama assures us that the program will not be funded with tax payer dollars.

What's Changed in this HARP 3 Proposal

So what's different between this revised plan of December 2012 and the White House proposal in February 2012? Instead of using the Federal Housing Administration (FHA) to back the loans (which Congress won't allow due to low FHA reserves), Fannie Mae and Freddie Mac would become the backers.

Another plan being discussed is to use the current HAMP mortgage modification program to lower interest rates. A huge benefit, this plan would not require Congressional approval. In addition, the hardship requirement to show imminent risk of mortgage default would be eliminated.

Tell the White House You're in Favor of HARP 3 Refinancing

Now it's time for you to tell the President that you support a HARP 3 program open to homeowners who are not necessarily financed with Fannie Mae or Freddie Mac home loans.

In fact, it's important to let the President know that getting rid of the red tape is not enough. The streamlined HARP 3 plan MUST be made available to qualified homeowners whose mortgages are not currently backed by a government entity.

This means sub-prime home mortgages, Alt-A, jumbo loans, and other plans currently not qualified to participate.

But how can you make your voice heard? It's quick and easy. Just follow this link to the official White House website at Support the Plan to Help Homeowners Refinance.

There's no simpler and effective way to make your voice heard!

Kate Answers HARP 3 Refinance Program Proposal Questions

• Javon, C. Pierce, and Anonymous Homeowner, this is the latest information on HARP 3 refinancing, as of December 2012. For future announcements and updates, watch my blog where I release breaking mortgage news including HARP 3 program updates!


• Gregory, if waiting for HARP 3 to take effect creates a hardship, contact a lender who specializes in refinancing VA home loans, assuming your current mortgage is guaranteed by the Veterans Administration.


• Gary, I do think there is a distinct possibility of getting the HARP 3 program. But be proactive and let the government know of your expectation!
  
  The idea of HARP 3 principal reductions (as practiced in HAMP loan modifications) was rejected earlier this year by Federal Housing Finance Agency (FHFA), the regulator and conservator of Fannie Mae and Freddie Mac. I have seen no inclusion of 2nd mortgages in the refinance proposals.
  
  It stands to reason that large and small banks will have the opportunity to participate in HARP 3 because of the President's intent to encourage competition among the lenders to lower the cost for borrowers.

Here's the link once more to make your voice heard to the elected politicians in Washington DC: Support the Plan to Help Homeowners Refinance.

Good luck and best wishes,

Ask Kate about Your Mortgage

Anyone can ask Kate a question or add a comment. (To comment, look for the link at the bottom of this page.)

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