Oct 22

Mortgage Refinance: Who qualifies and who doesn’t?

Requesting ForbearanceMany homeowners in Florida are underwater, i.e. they owe more than their property is worth. Homeowners who are falling behind on their payments, or have already fallen behind many payments face imminent foreclosure. There are several solutions for people who are not satisfied with their current rates, and find it difficult to pay them. In this article, we will discuss mortgage refinance.

Ask any foreclosure defense attorney in Florida, and they will tell you that refinance is to take advantage of newly lowered rates, and involves paying off the previous mortgage while taking out a new one at a lower cost. Although this definition indicates that people struggling with their finances may not be able to refinance, but thanks to the Home Affordable Refinance Program (HARP), it is possible for just about anyone who fulfills the basic eligibility.

If your mortgage is owned by Freddie Mac or Fannie Mae, and was taken out after May 2009, you may very well be eligible for a mortgage refinance under HARP. Other criteria includes being regular on your payments for the past 12 months. If you have missed a couple of payments, and are suffering from a financial setback of any sort, mortgage refinance may not be the best option for you. However, there are other options such as loan modification that you can look into.

For people who are not falling behind on their payments, and are not underwater, refinance is still a pretty good option. Not only can you take advantage of the newly lowered rates, but can save large sums of money in the long run. You get to pay a smaller amount per month and a consequent smaller amount over the long haul.

However, it is not advisable to such homeowners to apply for HARP, because HARP has been specifically designed to help out those underwater. We recommend you check your detailed eligibility for HARP here if Freddie Mac owns your loan, and here if it is owned by Fannie Mae.

If you wish to get a free consultation on your case, foreclosure defense attorneys at Amerihope Alliance Legal Services will be more than happy to answer any of queries. Feel free to checkout other articles on our blog, and contact us at 877-882-5338 for any mortgage related issue.

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