Underwater homeowners finding more success refinancing under HARP
The Home Affordable Refinance Program is finally helping severely distressed homeowners that owe more than 125 percent of what their home is worth. In June 2012, nearly 54,000 of these homeowners were able to refinance. Until then, just 11,000 of these homeowners had refinanced.
According to Alan Zibel at the Wall Street Journal, “The growth occurred after a way to package the loans into mortgage securities became available at the start of the month.”
Overall, HARP activity has picked up from last year as well. During the first six months of the year, 423,000 homeowners refinanced under HARP, which is already more than used program last year (400,000).
The growth has occurred after Fannie Mae and Freddie Mac released HARP II, which attempted to streamline the HARP program and offer incentive for banks to accept HARP loans. You can read more about the release of HARP II here.