The unfavorable economic conditions of the past years found the real estate business from its highest levels to the deepest fall. It was a must that Obama Administration interferes in stopping this continuing decreasing of house values. Some government foreclosure prevention programs were thought to help homeowners who are facing foreclosure through a "making home affordable plan", HAMP and HARP being two of the most important programs of this plan.
Home Affordable Modification Program (HAMP) versus Home Affordable Refinance Program (HARP).
In short terms, HARP is somehow an alternative for those who get denied from HAMP. Every American close to foreclosure would choose, if it was for him, HAMP help. HAMP is an excellent way to get out of mortgage trouble, but as the funds are limited, the selection for those who will really get the HAMP help is drastic. HAMP will assure a new 2% interest rate that would considerably decrease the cost of the loan itself. A cheap loan combined with a long term repayment and a monthly payment of maximum 31% of your gross income – these are, at a first glance, HAMP benefits. The chances to get into HAMP can be seriously improved by getting help from some mortgage modification companies. Thus, with a professional hardship letter, with all your papers in the proper order and some good advices of how to approach the lender, you did all that depended on you to get approved. If the answer is still a painful NO, then do not despair since a HARP alternative is still waiting for you.
HARP may not be of so great help as HAMP is, but, since it can really help you with your mortgage situation and is not only a hypothetical help ,as HAMP turned to be, you'd better get used to the idea of getting the best of it. HARP can assure you a small interest rate and, most important a fixed one. If your loan has a variable interest rate, then you surely should consider HARP as an alternative. A fix interest rate is equal to stability, planning and, why not, future. Few things are stable around you at this very moment, and thus, the idea of getting a new fixed rate should instantly make you feel better.
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