It’s amazing how many folks in Colorado could avoid foreclosure if they only knew about the incredible benefits of HARP.
Denver, CP (PRWEB) May 04, 2013
Harp Mortgage Lender, a national lending network of approved mortgage professionals who work with the Obama Administration’s Home Affordable Refinance Program, reports that while nationally HARP loans saw a major increase for underwater borrowers in 2012, very few Colorado borrowers with loan-to-value ratios over 125 percent are using the program, and a recent two-year extension to HARP means that these borrowers have more time to join the 2.2 million-plus borrowers who’ve refinanced through the program and are saving over $4,300 a year.
2012 was a record year for HARP, as 1.1 million borrowers used HARP loans—which was as many as the program had seen in its first three years combined. This was largely due to updates to the program in late 2011 that, among other incentives, lifted the cap for refinancing through the program that had previously been set at a 125 percent loan-to-value (LTV) ratio. This brought the program back to who it was originally intended for: deeply underwater borrowers. And the stats showed, with the Federal Housing Finance Agency (FHFA) reporting 228,141 above-125 LTV loans in 2012, or 21 percent of all that year’s HARP loans.
But while that trend was prevalent nationwide, most deeply underwater borrowers in Colorado haven’t seemed to catch wind of HARP’s benefits. Of the 16,211 HARP loans issued to Colorado borrowers in 2012, only a mere 577 went to borrowers with LTV’s above 125. That’s less than 4 percent of Colorado’s 2012 HARP totals, and about one-sixth of that national rate of 21 percent. This trend continued into January—the most recent month on FHFA record—with only 65 of the state’s 1,252 loans going to borrowers with LTV’s above 125. And this isn’t simply because there are less HARP-eligible deeply underwater borrowers in Colorado than in other states.
While foreclosure rates aren’t high in Colorado compared to the national norm, data from analytics company CoreLogic shows that there still were more foreclosures for the state (16,405) in 2012 than there were HARP loans (16,211). Victims of foreclosure are more often than not borrowers with high LTV’s on their mortgage. Considering that there were more than 16,000 foreclosures in Colorado in 2012 and only 577 HARP loans for borrowers with LTV’s above 125, deeply underwater borrowers obviously aren’t getting the memo that refinancing through HARP can save them over $4,300 a year. And with this knowledge in mind, Colorado HARP lenders should be champing at the bit to work with these potential refinancers.
“It’s amazing how many folks in Colorado could avoid foreclosure if they only knew about the incredible benefits of HARP,” says Ryan Workman of Proficio Mortgage Ventures, LLC, a HARP lender licensed in Colorado. “Through HARP savings, Colorado families have not only been able to keep their loan, but have also had the ability to invest in essentials like their children’s tuition and better healthcare plans.”
The FHFA’s April announcement that it will be extending the program through December 31, 2015 also came with a statement that the FHFA plans to engage in a more robust HARP marketing campaign, so that borrowers exactly like the ones in Colorado who’ve had to choose foreclosure can know that there are other options. In the meantime, attractive HARP mortgage rates and lax qualification standards in comparison to traditional lending programs make it the ideal refinancing program for all underwater Colorado borrowers who are in the know.
The Home Affordable Refinance Program was given provisions in October 2011 as part of an agreement between the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac, which made it easier for mortgage lenders to help HARP-eligible borrowers with refinancing.
The Home Affordable Refinance Program (HARP) is intended to help responsible borrowers with streamline refinancing. Borrowers who’ve been up-to-date with mortgage payments, but have seen a decline in their home’s value, are given the option of this HARP refinancing.
These are the eligibility guidelines borrowers must follow for HARP 2.0:
1) First loan is owned or guaranteed by Fannie Mae or Freddie Mac.
2) Loan was purchased by Fannie or Freddie before May 31, 2009.
3) Borrowers must be up-to-date on mortgage payments.
4) Borrowers must owe more than the value of their home, or there is minimal equity.
5) All mortgage payments on time in the past 6 months.
6) No sixty (60) day late payments in the past 12 months.
HARP Mortgage Lender is a nationwide online network of pre-approved home loan professionals and lending institutions that have been authorized to work with the Obama Administration’s updated versions of the Home Affordable Refinance Program (HARP 2.0 - 3.0). To speak with a HARP specialist, call toll-free at 888-460-2939.