Underwater Mortgages Can Refinance: Minneapolis real estate

Jenna Thuening can help if you are facing a Minnesota foreclosure or short-sale. Read about buying distressed properties, through our resources for Twin Cities home buyers and sellers. and foreclosure buying opportunities. Home Destination helps homeowners with mortgage worksheets, and offers current news on the Twin Citites housing recovery.

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Underwater Mortgages Can Refinance:
Complications, delays, and impasses with second mortgages not agreeing to resubordinate behind a new mortgage.

underwater mortgages can refinance

The new HARP 2.0 program is designed to remove some of the barriers that inhibited HARP's success the first time. Home Destination suggests homeowners, who can afford to, strongly consider 15 and 20 year mortgage options.

Underwater Home Mortgage Borrowers Get Help From HARP 2.0

As the new year began, many homeowners were hopeful after news of a refinance program that was announced late 2011 and should go into effect as we conclude March. The HARP 2.0, or the Home Affordable Refinance Program, which is aimed at helping underwater borrowers whose mortgages are owned by Fannie Mae or Freddie Mac should include the following:

underwater mortgages refinance helpNo underwater mortgage limits

Borrowers with underwater mortgages can refinance now regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.

underwater mortgages refinance helpEliminating appraisals and underwriting requirements

Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.

underwater mortgages refinance helpModified mortgage fees

Certain risk-based fees for borrowers who refi into shorter-term loans will either be eliminated or modified.

underwater mortgages refinance helpExtended deadline

The end date to get a HARP refinance has been extended to Dec. 31, 2013.

Home Destination recommends the Home Affordable Refinance Program-

HARP 1.0 program didn’t work as well as planned because all the interested parties didn’t come into line like the industry predicted. Minnesota law and policy makers have interventions in place to counter the foreclosure pandemic, including loan modification programs (such as the federal Home Affordable Modification Program (HAMP)), mortgage payment assistance and principal mortgage reduction programs, counseling assistance, funds to promote neighborhood stabilization, and regulatory reform. One avenue with potential to coordinate a number of these foreclosure mitigation tools is foreclosure mediation. If you are unsure how to use these programs to gain assistance with your underwater mortgage that can refinance, be sure to ask for assistance.

Beneficial Alternatives To Foreclosure

Home Destination helps clients connect to a forum in which a neutral third-party helps to facilitate an alternative to foreclosure in circumstances where such an outcome is feasible. Jurisdictions around the country are increasingly offering, or even requiring, mediation as a device through which lenders and distressed homeowners can attempt to reach mutually agreeable and beneficial alternatives to foreclosure, ensuring that thier underwater mortgages can refinance. The challenge for communities weighing the mediation option has been to assess what works and to identify reliable processes that are effective.

Homeowners Current on Their Home Mortgage Loans Have Huge Advantage

The loss of a home to foreclosure can be an enormous set back financially for a family. In addition to losing what is often their most valuable asset, families are uprooted from community support systems, stabilizing routines, the comforts of home, and a sense of positive pride in homeownership. Unfortunately, they may even find themselves with no place to go. The losses extend beyond individual families; foreclosures destabilize entire neighborhoods through declines in surrounding property values, loss of tax revenue, and blight. For millions of homeowners and their families who are at risk of foreclosure, mediation programs offer an opportunity to reassess their options and determine possible alternatives to losing their homes. Well-structured foreclosure mediation programs that are designed to take advantage of available resources at the local, state, and federal levels can be valuable and even essential tools as jurisdictions around the country seek ways to help stop more foreclosed homes.

Homeowners Current on Their Home Mortgage Loans Have Huge Advantage

The Federal Housing Administration will cut the FHA fees by more than half for borrowers who are eligible to refinance through the FHA's streamline program. The program allows borrowers to refinance with minimum documentation, even if they are underwater. Lenders are not required to ask for a new appraisal of the house when doing a streamline refinance. Only borrowers who are current on their loans and who closed on their mortgages before June 2009 are eligible for the streamline refinance program and the reduced fees. Homeowners with an FHA mortgage before June 2009 and with more that a 5% interest rate on their mortgage have the most to benefit. Move forward and join those who find that underwater mortgages can refinance.

Homeowners Current on Their Home Mortgage Loans Have Huge Advantage

Mortgage graph New York TimesAccording to a report by the New York Times, Jef Kinney, the vice president for innovation and development of Fannie Mae, who oversees refinancing activity, said, "I don’t think a lot of people are aware that they have this option". Because interest rates remain low, he said, refinancing may bring their payment "to a level that is sustainable to them and put money in their pockets." We need to help spread the word that underwater mortgages can refinance.

The National Mortgage Settlement states that, "Refinancing of Underwater Homes To assist homeowners who are not delinquent on their payments but cannot refinance to lower rates because of negative equity, the banks must offer refinance programs totaling at least $3 billion. The banks will be required to notify eligible homeowners of the availability of these programs. To be eligible, a borrower must be current on mortgage payments, have a loan to value ratio in excess of 100%, and must have a current interest rate in excess of 5.25%. The refinanced rate must reduce monthly payments by at least $100."

Underwater Mortgages Should Consider NeighborWorks

Additionally, NeighborWorks, a national non-profit organization established by Congress and funded by Congressional appropriations, debuted a foreclosure mediation workshop at the NeighborWorks Training Institute in December 2010. NeighborWorks is one of the largest funders of foreclosure-mitigation counseling in the nation, and is the administrator of the National Foreclosure Mitigation Counseling program. The real exciting news is that our Twin Cities real estate market may have reached bottom and is headed for recovery. Many who nearly gave up are learning that underwater mortgages can refinance.

Jenna Thuening, a Underwater mortgages can refinance with a Certified Distressed Property Expert's help Underwater mortgages can refinance. Enlist a Certified Distressed Property Expert to help you. Underwater mortgages can refinance!

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If I'm out in the field, you may quickly reach me by email: jenna@homedestination.com and note how I can help you, or leave a message on my voicemail and I will get to you as quickly as possible.