reverse mortages

Harp Loans

Be Underwater On Vacation Not At Home

Unless you\'re oblivious to the economy, the news, the stock market, the price of gas, or the news then you\'ll definitely be aware of the mess many families have found themselves in. Two years ago all you had to do was drive down any residential street and you\'d see too many houses for sale. It wasn\'t that people were wanting to move, it was that they were upside down on their mortgages. They simply could not afford to live in their house anymore. They were underwater paying on a mortgage for a house originally bought for $160K and now only appraised at $125K or much less. They needed something, someone, anything to help them; someone to throw then a lifeline so they would not drown.

Enter the year 2012, enter the system of Harp Loans.

Ok, so tell me a little bit more about what a Harp Loans are...This new type of loan system allowed homeowners to refinance their mortgage at a much lower interest rate and for more than the home was appraised for. So if the house was bought for $160K and appraised for $125K but they still owed $140K they could get a loan for that amount, get a lower interest rate, save money month to month and not have to worry about uprooting their residence, their possessions, their family, their life. It was the lifeline they had been asking for


Was this just another bailout? Isn't this the type of system to help people who aren't responsible with their finances?

I know it can look that way, but it is not. It was not designed, nor has it ever been, a way for people to find an "easy way out". There are some tight rules on qualifying for a loan like this, the first of which is that you could not have missed more than one mortgage payment in the past 12 months, or could not have missed any in the past 6 months. This lifeline was for the people treading water, doing all the can to stay afloat. It was not designed to help the people who were content in being underwater, those who are always looking for help. Those who think that Uncle Sam owes them something.

So what will this do for homeowners in that situation, maybe even me? Well, let's first break down the acronym. HARP stands for Home Affordable Refinance Program. It says it all right there, but of course, there's the red tape, the legality and then numerous ways to define each sentence when it comes to mortgages and contracts. If you find yourself in a similar predicament as suggest above, you no longer need to feel alone. Just reach out. Help is there. Ready to work with and for you.

As the original title suggested, these HARP loans were designed to be able to give back to the homeowners who were doing all the could stay above on their payments. The ones who were fighting at every turn, the ones who were not just going to go under. These loans offered them a way to put more money in their own pocket every month so that home would be a place they could be happy to come to. A place where they could live affordably. A place where they could also take vacations from and go underwater on purpose at a water park. It was the lifeline they needed.