More Time Available to Take Advantage of HAMP, HARP
During a speech in Los Angeles last week, Mel Watt, director of the Federal Housing Finance Agency, announced that the deadline for two federal programs intended to help struggling homeowners has been extended for another year.
The Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP), both launched in 2009 to boost the housing recovery by limiting foreclosures, were set to end in December. That deadline has now been pushed forward to the end of 2016.
HAMP helps lenders modify loans of troubled homeowners, creating more affordable payments. HARP allows borrowers with little or no equity in their home to refinance to a lower-interest rate mortgage.
More information on HAMP and HARP can be found on Fannie Mae’s Know Your Options website (Fannie Mae is the publisher of The Home Story). Consumers interested in the programs should contact their mortgage company (the company listed on your monthly mortgage statement) to find out if you can qualify.
“Although the number of new borrowers entering these two programs continues to decline, in part because many eligible borrowers have already taken advantage of them and in part because of recovering housing prices, lenders and servicers are continuing to approve new HAMP modifications and HARP refinances,” Watt said in a statement.
“Extending HAMP and HARP through the end of 2016 will provide real relief for borrowers who continue to face challenges either paying their mortgage or refinancing their loan,” he added.
Want to learn more about HARP? You can read our previous stories on the topic here: