The difference between HAMP and HARP
Between those two variants there are no many differences. They are both about making the monthly payments affordable for the house owner in order to avoid foreclosure. HAMP will realize this through the modification of the interest rate and/or extending the loan repayment time. Harp will use refinancing as a tool to reduce mortgage interest rate. Home affordable refinance plus program may sometimes consist in a second mortgage when the equity is big enough.
How does HARP work in practice?
As you may know, when it comes to practice a lot of paperwork brake social programs from its straight course. Home affordable refinance application process did not make any exception from the rule. Refinance mortgage loan guidelines that might have done easier the application process are mainly the following:
- You should own or occupy a 1 to 4 unit home.
- Your current mortgage loan should be either owned or guaranteed by Fannie Mae or Freddie Mac.
- You should be paying your monthly mortgage payments regularly, and should not be more than 30 days late on your loan payments in the last 12 months.
- You have to convince you can support and meet the new mortgage payments.
As a remark, these social programs were supposed to come toward the need of house owners near to foreclosure or bankruptcy. If you are one of these Americans it would be an unsafe risk you take by not applying one or another social program. Even if guidelines may stipulate a condition that does not suits you, you can learn how to make them be in your advantage.
Source : www.articlesupport.com/2011/03/02/making-home-affordable-program-and-his-refinance-part/