One of the existing rules under HARP is about to get a major rewrite during 2012. Currently homeowners whose loans are owned by Fannie Mae or Freddie Mac can refinance their underwater home if the loan to value (LTV) is less than 125% of the appraised value.
During 2012 as the major changes to this program are rolled out, the 125% LTV cap will be removed. This program could potentially allow more underwater homeowners to refinance at today’s historically low rates.
Susan Tompor’s article in the Detroit Free Press does an excellent job at summarizing the qualifications that a homeowner would need to meet to possibly qualify under HARP.
Please copy the following address in your web browser to access the article.
http://www.freep.com/article/20111110/COL07/111100506
