Realtors® Support New Refinancing Rules that Help Reduce Foreclosures

October 2011

Recently, President Obama announced a new plan to help underwater homeowners refinance to lower their monthly mortgage payments. Working with the Federal Housing Finance Agency, the president is revising the Home Affordable Refinance Program, aiming to help 1 million homeowners who owe more than their homes are worth avoid foreclosure.

“Realtors® commend President Obama for pledging to help more struggling homeowners refinance their mortgage. When people lose homes to foreclosure, families, our communities, the housing market and our economy all suffer. Helping even more families stay current on their mortgage and remain in their homes will help support the housing recovery.”

HARP was created in 2009 and allows homeowners to refinance their mortgages at lower rates without having to meet the typical requirement of having at least 20 percent of equity in their home to do so. Under current guidelines, many homeowners have been ineligible for the program because their home values had to be no more than 25 percent below what they owed their lender and some were unable to afford the closing costs and appraisal fees.

With the new rules which will take effect by December 1, some of the extra fees to participate in HARP have been waived and homeowners’ eligibility won’t be contingent on how far the home’s value has fallen. Homeowners with loans backed by only Fannie Mae or Freddie Mac can participate and must be current on their mortgage.

We Realtors® hope the recent changes to HARP will encourage other mortgage investors to help struggling homeowners refinance. “Though the process for refinancing can be cumbersome, the money saved is worth it.” Realtors® have been advocating tirelessly for the government and lenders to take more aggressive steps to modify loans, as well as streamline the short sales process, another alternative for struggling homeowners.”

The National Association of Realtors® is also calling upon Congress and the Obama administration to create policy solutions that stimulate housing and economic recovery. In a recent five-point housing solutions plan outlined in part by NAR, lenders and the government are urged to take more aggressive steps to modify loans and approve short sales to help reduce high foreclosure inventory levels. Realtors® are hopeful that reduced fees and improvements to refinancing programs such as HARP will help more struggling homeowners reduce their monthly mortgage payments and avoid losing their home to foreclosure.

The changes to HARP are just one step toward reducing foreclosures and fixing the housing market. We are beginning to see early signs of stabilization in the housing market, but until foreclosures are significantly reduced and housing inventory reaches a more normal level, there can be no true recovery.

EXIT Convention 2011

The time has finally arrived for the 2011 EXIT National Convention! This year, it is being held in Nashville, TN at the Grand Ole Opry. We are expecting some great speakers, and I hope to come back with LOTS of information for this blog, my newly updated website: www.dianeisdedicated.com, and hopefully make some new friends too.

I will be available via email while I'm out of town (Diane@Dianeisdedicated.com) and I'll be chacking my voicemails at 303-868-3838 as well. If you need anything, please let me know. I will be back in Denver on 11/1/11.

AMAZING INTERST RATES!

Today's interest rates are at 60 year lows! Now is the perfect time to stop renting and get into your own home. The rates today are unheard of and UNBEATABLE!

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