Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

Ask the Expert

Got A Question?

Knoxville Short Sales & Foreclosures – HARP, HAMP Extended Through 2016

mha-logoThe Federal Housing Finance Agency (FHFA) recently extended the Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP) though 2016. This is great news for Knoxville homeowners who are facing foreclosure on their Knoxville home or who are having trouble making mortgage payments on their Knoxville home. Read on to find out more about these programs. HARP The HARP program is there to help homeowners who loans are owned by Fannie Mae or Freddie Mace. The loans had to be obtained by Fannie or Freddie prior to May 31, 2009. If you obtained a mortgage that qualifies and you owe more on your home than it is worth, the HARP program can help you. Even if you have lost value on your home, you are still able to refinance even if you home is worth less than half of what you paid for it. For example, if you paid $160,000 for your home, and your home is now worth $60,000, you are still eligible for the program. This program can also be used for homes that are a second residence or a vacation home. In order to be eligible for the program, you must be current on your mortgage (as in having less than on late payment in the past year and no late payment in the last six months). Homeowners who have filed bankruptcy may still be eligible as well. HAMP The HAMP program is there to help homeowners who have fallen behind on their mortgage, due to reasons beyond their control like job loss or the loss of a family member. For Knoxville homeowners who have been through a situation like this, the HAMP program may be a way to get yourself back on track. The program is available to any homeowner whose loan is owned by Fannie Mae or Freddie Mac. The goal of HAMP is to reduce your monthly mortgage payment so that it is not more than 31% of your pretax income. To accomplish that, the program may lower your interest rate (short term or long term), extend your term (from 30 years to 40 years), or change the loan type (fixed rate to step rate). As far as any past due payments, those will be added onto the principal balance of your loan. In order to be eligible, your loan must be owned by Fannie Mae or Freddie Mac, your loan must have closed on or before January 1, 2009, your property cannot be condemned, you must not owe any more than $729,750, and you must not have been convicted of mortgage or real estate fraud in the last 10 years. For more information about both of these programs, visit the Making Homes Affordable Website.
Are you facing foreclosure on your Knoxville home? Do you want to hear your options to avoid foreclosure? If so, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We’ve helped countless Knoxville homeowners avoid foreclosure. Give us a call today for a free consultation.

facebook twitter linked in youtube