Overcoming Mortgage Difficulties with the HARP Mortgage Program
Article by Mortgage Guru
Back in 2009 when the economy started sliding indefinitely, my high school classmate Ralph started to face issues with his monthly mortgage loan repayment. This was primarily caused by the fact that Ralph lost his day-job as his company started retrenching that year, and left him precariously positioned in terms of financial stability. Without his main source of income, Ralph was forced to look for alternative jobs, most of which did not pay regularly. As a result, his mortgage loan started to suffer as he missed several payments in a stretch. He faced the additional problem of owning a home that did not appreciate in terms of value. Thus he owned no equity in his home at that time, and could not apply for a home equity loan. He was at a loss of how to overcome his mortgage issue, and was exploring the option of conventional home refinancing when the government introduced the Making Home Affordable (MHA) program. The MHA program had two main components to help ailing homeowners cope with their monthly mortgage loan repayments, the Home Affordable Refinance Program (HARP) as well as the Home Affordable Modification Program (HAMP). This introduction came in a timely manner for Ralph, who opted for the HARP mortgage program immediately. The HARP mortgage program was one that allows homeowners to refinance their home even if the owners do not possess any equity in the home, and this suited Ralph perfectly.
Under the HARP guidelines, you are eligible to apply for this program if your home