Help for Homeowners - Summary of Programs

3-2-2012: HARP is being expanded to all homeowners who are current on their Fannie Mae or Freddie Mac mortgages, have not used HARP before, and regardless how far underwater they are on their mortgage. Source: http://blogs.wsj.com/developments/2011/10/23/twelve-questions-on-obamas-refi-plan/


3-22-2011:  Let's see - Kill FHA Short Refi Program - Maybe kill HAMP - and now extend HARP -HAMP-HARP-FHA Short Refi and other program fates - Apparently, to qualify for HARP you must currently have a mortgage owned or guaranteed by the the former GSEs (Fannie Mae/Freddie Mac), have a 12 month history of on-time payments on your loan, and owe more on your loan than your home is worth (<=125%).  NOTE:  Not sure about these numbers but they are encouraging - During 2010 a total of 6.8 million mortgages were refinanced nationwide using HARP, with 621,803 loan closings - Then how did the other 90% get modified if they didn't refinance through a loan closing?  In 2009 190,180 homeowners used the program to refinance.

3-15-2011:  WSJ 3-15-2011, A16 - over half of all mortgages modified through Bush and Obama programs had redefaulted within 12 months.Private loans defaulted at a higher rate.  But they also reported 62% of "Government Guaranteed" loans but didn't specify FHA/VA/Fannie/Freddie?

3-1-2011:   Affordable Housing Centers of America (AHCOA) is a non profit organization designed to assist homeowners in financial trouble making their monthly mortgage payments.  ACHOA has counselors to assist the homeowner to work with their lenders to prevent foreclosure.  Many times, a bank/financial institution may have several departments - foreclosure, mortgage payment servicing, mortgage modification, etc.  These departments may not even talking with one another regarding the same customer's situation - sad, but true.  Affordable Housing Centers of America website

2-17-2011:  The new FHA Short Refinance Program involves banks and creditors to agree to write down home loans to below current equity (market) value of the home. The process refinance borrowers into the Federal backed mortgages.  As of this date, about 15 homeowners have refinanced since the program's release in August 2010.   http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2010/HUDNo.10-173

Note:  As of now, several other programs to help homeowner have dismal results - 5,000+ homeowners enrolled in program to assist unemployed homeowners; 3,000+ homeowner helped with refinancing 2nd liens; and 2,000+ homeowner received Federal assistance who have turned in their properties or were allowed short sales. (Source:  US House Committee on Oversight and Government Reform) 

Bush's - Hope Now - This was an attempt early in the mortgage meltdown (2007) to get existing lenders to modify your loan.  It was not very successful.

Bush's - Hope for Homeowners in (2008)

Barney Frank's proposed moratorium on foreclosures (with Fannie and Freddie)in (2009).

Barack Obama's - Home Affordable Modification Program (HAMP) - 1-888-995-HOPE (4673) in (2009).

Note: Other attempts by the Federal Government to prevent or relieve impact of foreclosures includes (a) $150 billion poured into Fannie and Freddie to date for purchase of failed mortgages; (b)both the first time homebuyer tax credits (one refundable, the other non-refundable); (c) Federal dollars to help neighborhoods struck by foreclosures; (d) another $1.5 billion to 5 states and $.5 billion to other states hit by foreclosures; and (e) FHA's recent continuation of flipper waiver allowing people to purchase flipped homes less than 90 days after foreclosed homes were bought and remodeled by investors.

10-20-2010:  (WSJ 10-20-2010, C2) - Wells Fargo was quoted to say their general practice is to exhaust every home retention option before foreclosure.

8-18-2010 WSJ A6 - Some complaints - overly complex, unwieldy and revised so often that servicers have a hard time keeping up with changes, but the Treasury Department blames servicers for not doing everything possible for the homeowner.

Apparently about 15% of borrowers (398,000/1.3 million) who applied for the HAMP got help...another 520,000 have dropped out and about 45% (234,000) may have received loan restructuring with their loan company...but 286,000 homeowners weren't helped.

U.S. Department of Housing and Urban Development - FHA Short Refinance

All these programs were thought of to help homeowners.  For example, HAMP was designed to help millions of homeowners, but less than 500,000 homeowners in fact more people have been kicked out of the program than received permanent modifications and many more found no path to keeping their home.

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