HARP 2.0 – Atlanta Effect?
Just how bad has Atlanta been hit by the housing crash? How many underwater homeowners does Atlanta have? Sadly, we’ve been hit pretty bad and we have nearly 400,000 homeowners that are underwater per Trulia.
As a percentage of homeowners just how many is 400,000? Well, it’s nearly 32% of all ATLANTA homes.
So what do you do? Some people just walked away. Those people aren’t reading this right now, they are sitting in their over-priced apartments waiting out the 3 years you need to purchase again if you have a foreclosure.
I’m not hating on the people that handed the keys back to the bank, sometimes that makes the most financial sense. This post is not for them though, this is for the responsible Atlanta homeowner.
Remember the promissory note you signed? Yeah, I signed it too. We honored it, obligations are obligations right? At least to some of us.
So we stuck it out. Congrats! We just got rewarded. Finally, the good guys win one.
So, what did we win and why should I care?
Starting in March, responsible homeowner’s can no refinance regardless of their equity position. You read that right, loan to value is no longer a player.
The Obama Refinance as some call it, is actually a pretty smart move. It’s a reward for homeowner’s who have stuck with their pledge. Lifting loan to value restrictions will allow responsible homeowners to refinance and save regardless of their equity.
Not only will this help stabilize the Atlanta market by decreasing foreclosure and walk aways, it will allow homeowners to lower their mortgage payments. The money saved will go back into the economy. It will increase consumer spending and small business job creation. It’s a GREAT idea. Finally!
Atlanta Underwater Refinance Program
The primary goal for the new Home Affordable Program is that refinancing will put responsible borrowers in a better position by reducing their monthly payments, reducing their interest rate, reducing the amortization period, or moving them from a more risky loan structure (such as an interest-only mortgage or ARM) to a more stable product fixed rate mortgage
By allowing underwater homeowner’s the ability to take advantage of today’s lower interest rateswithout have to pay down their equity or have mortgage insurance, current homeowner’s can reduce their monthly mortgage payments, save more money and provide a boost to the economy.
That is the goal of Obama’s Refinance Program, stimulate the economy. Politics aside, if you can save from HARP then why not take advantage of it?
How Do You Qualify for HARP 2.0
In order to be eligible for the HARP refinance program :
- Your loan must be backed by Fannie Mae or Freddie Mac.
- Your current mortgage must have a securitization date prior to June 1, 2009
- You need to be current on your mortgage
There are a few other details that may trip up Atlanta HARP refinance potentials, but for the most part if you meet the 3 HARP guidelines above then you can participate.
Oh, one important thing I want to mention. Many people might have tried and failed under HARP 1.0 to refinance. Good news, your terrible big 4 bank that you had to use on HARP 1.0, is no longer needed. HARP 2.0 is now open to actual mortgage professionals and all mortgage lenders that wish to participate.
Why would I say such a thing about the big banks? Because I used to work for one. Let me take a minute to explain the compensation structure of a big bank. The big bank offers a similar rate that I offer if not usually higher, but they pay their loan officers beans and they have to close a bunch of loans (at the expense of customer service) to make a living.
Big banks are beholden to whatever turn-times, underwriting guidelines and interest rates they offer. They have no choice. They have no ability to fire an underwriting department if they drop the ball. They have no ability to shop rates. They have no voice. They like it, because they also have no marketing ability and that big bank provides then leads.
So, if you’d like to wait 90 days to refinance, then the big 4 are for you.
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2 Responses to HARP 2.0 Market Review – Atlanta, Georgia
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Harp2 is worthless if your refied in 2009 after June,1,2009.Had to fight with Hells Fargo to get them to lower interest rate.
Now being excluded from harp2 because they fought with me from march 2009 till I closed.