Solving the Knoxville Foreclosure Crisis
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Rick Smenner

RE/MAX Preferred Properties
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HARP 2.0 Gets Extended – Will It Help Underwater Knoxville Homeowners?

Home-Affordable-Refinance-Program-How-To-QualifyIn Knoxville, and many place across country, there are many homeowners who owe more on their home than it is currently worth. While not all of these homeowners are facing foreclosure, many homeowners, who are current on their mortgage, are still underwater. A little over a year ago, the Home Affordable Refinance Program [dubbed HARP 2.0] was revamped in hopes of helping underwater homeowners. HARP 2.0 was set to expire at the end of the year, but has now been extended through 2015, giving more Knoxville homeowners time to refinance their mortgage, if necessary. In 2009, the Homeowner's Affordable Refinance Program [HARP] was released to help people in this who were current on their mortgage, but owed more on their home that it was worth. While the program had good intentions, it only help about 1 million borrowers due to high costs for lenders and borrowers and complicated restrictions. Since being revamped, HARP 2.0 has helped over 2 million Americans, according to the Federal Housing Finance Agency. The program, however, has not been nearly as successful as originally anticipated. With the extension of the program, the government plans to make more information easily available to homeowners. With HARP 2.0, many of the hurdles that borrowers faced with the existing HARP program have been removed.  Knoxville homeowners who owe more on their home than it is worth, will now be able to refinance with a fixed rate mortgage, with no loan-to-value restrictions. Also, borrowers will no longer have to wait if they have faced foreclosure in the past 7 years. And in most cases, borrowers will no be required to have an appraisal. Under HARP 2.0, a Knoxville homeowner can refinance their underwater mortgage if they the qualifications. In order to qualify, the the Knoxville homeowner must meet three qualification: (1) the loan must be backed by Freddie Mac or Fannie Mae (2) the loan must have been taken out prior to June 1, 2009 (3) the borrower must have made his/her last 6 payment on time and only have 1 late payment in the last 12 months. To learn more about this visit the Making Home Affordable Website and be sure to talk to your loan officer about applying for Homeowner's Affordable Refinance Program. Do you think the HARP 2.0 has helped underwater homeowners over the past year? Do you think it is worth extending?

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