How does this program help me?
This is the second of two foreclosure prevention programs that came out of the Obama Administration (the other is the Home Affordable Modification Program, or H.A.M.P.). Many homeowners are not having problems making their house payment but still want to save money by refinancing. Unfortunately, with values having dropped to the lowest level in years millions of homeowners cannot refinance due to their lack of equity. Under this program homeowners can finally refinance, even if their house is slightly upside down in value. In addition, guidelines like lower credit score requirements and higher debt ratios make it easier than ever to qualify.
The Home Affordable Refinance Program is only available to homeowners whose loans are owned by either Fannie Mae or Freddie Mac. As you try to save your home it is imperative that you find out who owns your loan since this determines what programs are available to you. This will be the single, most helpful step you will take during your quest to save your house from foreclosure. Important – Who you mail your payments to is your servicer, not who owns your loan!
Who should I contact?
Any normal channel for home loans can help you with this program. You can use your preferred mortgage broker, bank, credit union, etc. Tell them you want to apply for the Home Affordable Refinance Program. If they don’t know what that is you should take your business somewhere else.
What should I expect?
This loan is processed the same as a regular refinance. Once you choose a lender it should take 30 to 45 days depending on how busy the company is that you choose. If you do not qualify for the program for some reason you should look into the other Obama Administration program, the Home Affordable Modification Program, which is also available to you if you are Fannie Mae or Freddie Mac owned.
