The White House announced a modification to the HARP program today that may help home owners. The new program will eliminate the Loan to Value cap of 125% and allow servicers to refinance loans regardless of the “underwater” status of the loan. This new program will also encourage the elimination of fees and other costs typically associated with refinancing. Additionally this new program will allow mortgage holders to take advantage of lower interest rates. HARP has now been extended until 2013. Sounds like a great program and a great idea to help homeowners, right?
A deed in lieu of foreclosure is one option for a distressed homeowner. Is a deed in lieu the best option is the question that needs to be answered. When a homeowner signs over ownership to their property in a deed in lieu transaction, they are giving legal ownership back to the lender in lieu of the lender foreclosing on their security interest ( note that nothing has been said about the note or debt).
When a homeowner in Florida gets into financial trouble, some really tough decisions have to be made. The first decision is what to do with their home or investment property. This is where the choices really need to be examined