Troubled Santa Clarita Homeowners See HARP As a Shining Beacon

Home Affordable Refinance Program helps homeowners refinance when other options are not available.

While there are definite signs of improvement in the housing market and other areas of the economy, many Santa Clarita property owners are still struggling with their mortgage. In many cases it’s not so much that their financial situation has changed, but their equity may have yet to see the recovery that will make their property worth more than their mortgage loan. Many have tried traditional loan refinancing options only to find out they don’t qualify for a lower rate.

That’s where HARP comes in.

HARP (Home Affordable Refinance Program) is part of the federal government’s Making Home Affordable program, which has now been extended through 2013. It is designed to help homeowners who have exhausted all traditional means of refinancing their mortgage loan to a lower rate because they have little or no equity. The homeowner would receive a completely new loan with a new rate, completely replacing their current mortgage loan, which may move them to a more stable mortgage rate and even a lower monthly mortgage payment.

How does HARP work?

HARP may be an option for homeowners if:

They are current on their mortgage payments (IE: They have not been more than 30 days late on a payment in the past 6 months, and not more than once been 30 days late in the previous 6 months)
The value of the home has decreased
They have limited equity of greater than 80% of their property’s value
Your home mortgage loan is guaranteed by either Fannie Mae or Freddie Mac
Your loan was acquired by Fannie Mae or Freddie Mac prior to May 31, 2009
Homeowners can verify whether their loan is guaranteed by Freddie Mac by clicking here, and by Fannie Mae by clicking here.

Does the government own my mortgage if I participate in the HARP program?

No. HARP programs are offered through participating lenders. Your first step is to find out if your mortgage company participates in the HARP program. If you’re not sure where to start, feel free to contact us and we’ll be glad to point you in the right direction.

What if I still can’t qualify for a refinance through the HARP program?

Montemayor & Associates can offer several options to distressed homeowners to put them on the right path, or to help them avoid foreclosure. Use the contact form below to ask your questions. All inquiries are treated with discretion, and it never costs you anything to talk to us. We’re here to help.