Stop Foreclosure with HARP

To make your mortgage loan affordable if you are struggling with the mortgage, it is best for you to refinance the mortgage loan with making home affordable refinance program. President Obama’s new refinance planis helping struggling home owners save money on their home mortgage and also escape foreclosure which would strip them of their home. It is extremely distressing to lose one’s home. Many people don’t even get to have their own home throughout their life time. Those home owners who do actually get fortunate to possess their own home have had invested in their homes a huge chunk of money. Mortgage works in a very clever way. If you are persistent about mortgage payments you are on your way to acquiring the home possession soon but if you miss payments, the lender would cancel your mortgage and take away the home and also collateral which might be the house itself.

Obama's making home affordable refinance program is granted based on several conditions:

  1. The borrower has to be living the home at the time of acquiring refinance program
  2. The home should not be used for profit seeking or commercial purpose at the time of availing HARP
  3. The home owner must occupy a 1 to 4 unit home
  4. The home mortgage must be guaranteed. The guarantee could either be Freddie Mac or Fannie Mae
  5. The mortgage loan payments shall not be later than the 30 days grace period allowed after the due date
  6. Ample documentation and evidence should be provided to the lender that the new loan will be repaid on time
  7. All these requirements are also outlined on the HARP 2 which is the online source to look for HARP
  8. All the terms and conditions can be referred to at the online website

President Obama’s government introduced home affordable program to put a halt to the increased rate of defaults. It works for both borrowers and lenders. Borrowers are rehabilitated by making the mortgage affordable and the lenders are given incentives to help such home owners who are at the verge of foreclosure. It not only helps the lender and borrower individual but also helps improve the situation of real estate industry. Due to the unemployment prevailing in the country, rising and fluctuating rate of interest and low trust of borrowers in investment led to downfall of the industries operating in the country. Real estate was one of the industries that took the blow of unstable economic conditions.