HAMP PROGRAM GETTING A REVAMP, ONCE AGAIN TOO LITTLE TOO LATE?
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?
While this program sounds great, it has one very large draw back, in order to qualify a borrower must be current for six months on their payments, and not have had more than one late payment in the past twelve months. The new program, or modified program, does not address the issue that these very servicers employed by Freddie and Fannie told borrowers that they have to be behind on their payments in order to qualify for a modification. What is the purpose of announcing a new program that sounds good in theory but is about three years too late for most individuals?
David M. Lampley, Esq. is a Consumer and Bankruptcy Attorney with The Dellutri Law Group, P.A. David works out of the firm's Fort Myers and Naples offices. He practices in the State and Federal Court's in Florida.
