HARP, HAMP, and HAFA are three government programs that could be saving homes in Santa Clara and nationwide. They were set up to help homeowners in distress. They are all part of the “Making Home Affordable” program. Unfortunately, a lot of people in trouble don’t know all their options so these programs have not really been fully utilized. On top of that the guidelines in the first of the programs seemed a little vague and the lenders were not really ready to play ball when the programs rolled out.  Over the next 3 days I’ll go over each in detail. Today we’ll start with HARP.

HARP- Home Affordable Refinance Program

Most distressed homeowners cannot refinance under regular means as they now owe more than the property is worth. When you go to purchase a home, the lender will not loan even 100% Loan To Value, let alone get a bank to work with you to refinance a debt that in many cases is over 100%.

To qualify for a refinance under the program you must meet the following:

• Your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.
• You are current on your mortgage payments (and you haven’t been over 30 days late with a mortgage payment in the past 12 months).
• Your current mortgage is at least three months old.
• Your first mortgage is less than or equal to 125 percent of the current market value of your home.
• Your property is 1-4 units in size.

This program was set to expire in June of this year but has received a one year extension to June 30, 2011. The Federal Housing Agency has stated that they have not seen a substantial change in the market since they implemented the program, and have thus decided to extend.

This program has been deemed only moderately successful. Between the homeowners that don’t realize it’s an option, the banks that won’t co-operate, and the homeowners who would rather walk than keep paying on a loan that is bigger than the worth of their home, there haven’t been a lot of takers. The banks may be more co-operative this time around as many homeowners are choosing to just walk out, many more than last year when this program originated.

In Santa Clara tonite and tomorrow night they are holding auditions for “Jack And The BeanStalk”. Everyone from 8-18 is invited to try out for the show. Just click here to go to the site for more information.

Mark your calendar now for the 30th Annual “Art and Wine Festival” in Santa Clara on Sept. 18 and Sept. 19. Admission is free. For more info click here.