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The Kathy O'Neal Team

Real Estate in Chantilly Blog

What if you are “underwater” and must refinance?

Making Home Affordable logo

We have all heard about the problem of  “underwater”  home mortgages.

If you are dealing with this issue, I want you to be aware of the extension of the Home Affordable Refinance ProgramIt has been extended for another year, until June 30, 2011.

As I understand it, these are the four most basic requirements to get help from this program:

  1. The existing loan must be guaranteed by Fannie Mae or Freddie Mac.
  2. Your home must be a 1 to 4-unit property.
  3. You must have a perfect mortgage payment history going back 12 months.
  4. Your first mortgage balance must be 125% or less of your home’s market value.

Not sure if your loan is backed by Fannie Mae or Freddie Mac?  Check it out at Fannie’s website:   http://www.fanniemae.com/loanlookup; or at Freddie’s:   http://freddiemac.com/mymortgage.  If it is not listed, you are not eligible for the program.

There are a number of other details to be aware of, but this will get you started.

You can get more info from the HARP FAQ section on the government’s official website.  A next step after that would be to contact your mortgage loan professional.  If you need a few references, email or call me.   I can give you a few reputable options.

Don’t let fear of the bureaucracy prevent you from at least getting more information. You may find this to be a viable option, but you will have to do a little homework.

And of course you can always call upon me to help with the areas of your situation that may involve home buying or home selling.