HARP and HAMP
The HARP, Home Affordable Refinance Program, was implemented to slow down the falling real estate market. If the government wouldn't have stepped in to save the real estate market, the housing market would have been worst than it is today. The homeowner has to meet the requirements for HARP in order to qualify for the program. If the credit score is not at least 620 or higher, and no late payments within a year, the homeowner doesn't qualify for the program. The programs, HARP, Home Affordable Refinance Program and HAMP, Home Affordable Modification Program will expire on December 31, 2013.
The homeowners have to close their loans before January 1, 2014. These loans are sold to Wall Street on the secondary market. The government owns 60% of the Fannie Mae and Freddie Mac loans. The HARP assists homeowners with their mortgage payments if the homeowners have paid on time.
Truth-Riding Dirty
The lenders, credit bureaus, collection agencies and government are all riding dirty. All homeowners need to check with their lender on the way the loan is rated on their credit report. To participate in one of these programs, the home owner may lose approximately 100 points on their credit scores. The lenders are making money off these programs. Most of the lenders are extending the mortgage terms to 40 years for the lowest interest rate reduction. The lenders don't have to do a principal reduction on a loan. If a homeowner has excellent credit, the homeowner may take a hit on their credit report for participating under the HARP or HAMP.
The government has requested the lenders and the credit bureaus to change the way these loans are coded on the credit report under the HARP, Home Affordable Refinance Program and HAMP, Home Affordable Modification Program. If the credit scores are lowered, the lenders make more money by charging high interest rate on credit cards.
Under a FHA loan the homeowner has to miss a payment to qualify for a short sale. A late payment on any credit account reduces credit score approximately 45 points on the credit report. All homeowners should check their credit report before accepting the HARP and check their credit report after receiving the program.
The government has requested the lenders and the credit bureaus to change the way these loans are coded on the credit report under the HARP, Home Affordable Refinance Program and HAMP, Home Affordable Modification Program. If the credit scores are lowered, the lenders make more money by charging high interest rate on credit cards.
Under a FHA loan the homeowner has to miss a payment to qualify for a short sale. A late payment on any credit account reduces credit score approximately 45 points on the credit report. All homeowners should check their credit report before accepting the HARP and check their credit report after receiving the program.
Credit Score
Below 600
All Applicants
with credit scores below 600 may still have the opportunity to purchase an
affordable home. The booklet, "Increase Your Credit Score After Short
Sale, Foreclosure and Bankruptcy", provides the techniques to increase an
applicant's credit scores. The program offers “FREE 30 DAYS COACHING” as well
as the booklet at increaseyourcreditscorenow.com
We
provide monthly newsletters on how to increase an applicant's credit scores and
weekly blogging information at increaseyourcreditscorenow.blogspot.com
Opt-Out
A modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.
ReplyDeletewhat is a loan modification california