Is it in Your Best Interest to Complete a HARP 2.0 Refinance or Short Sale on Your Home?

Posted on Aug 7, 2012 in Roseville and Sacramento Short Sale FAQs

Hi this is Mark Peek at Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. I want to talk to you today about whether or not to keep your home if you are underwater or if you are considering a refinance program such as the revised HARP 2.0. One of the things that I would suggest before you think about moving forward and taking a refinance on that is whether or not this makes sense for you. First of all with the payment that you get out of the refinance, would you be willing to rent this property at that current payment? If the answer is no, then the HARP 2.0 refinance is probably not in your best interest.

Number two is how long is it going to take for you to break even if you refinance? If it’s only going to reduce your payment a couple hundred dollars but you are severely underwater is that really in your best interest and how long is it going to take for you to break even again. One of the things I suggest before considering HARP 2.0 refinance is to run the numbers on your residence. Does it make sense for you to stay or should you short sale? If you short sale you can potentially come back and purchase again after closing the short sale in as little as two years. So, does that make sense? Take a look and use the short or stay calculator on my website. Put in your address and information and it will generate a report and give you an idea of how long it’s going to take for you to break even. It will help you decide if a refinance or short sale might be right for you.

If you have a Freddie Mac owned loan you are going to have a hard time and I’m not sure that there is many servicers or lenders out there that are doing Freddie Mac HARP 2.0 refinances. The guidelines are just so rigid on buy-backs out there that a lot of the lenders are afraid to do that. Again, I’m Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist and I’m here to answer any questions you may have.

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Discussing The Home Affordable Refinance Program

Posted on Dec 2, 2011 in Roseville and Sacramento Short Sale FAQs

Hi, this is Mark Peek at Keller Williams Real Estate, your short sale specialist in the Roseville and Sacramento area. I am here provide you with information regarding short selling your home should you happen to be in a difficult financial situation.

Today I wanted to talk to you about some of the modifications that have been made to the Home Affordable Refinance Program (HARP). The treasury department has gone back and looked at the success rate of this program and the impact it’s had on homeowners today and decided to make some revisions. The program is over two years old at this point; out of the 5 million people they were targeting for this program, it’s been less than 10% effective for those that are in distress and need to refinance their homes at a lower rate.

You may wonder if the changes they’ve made are going to positively impact the program and increase the success rate. One of the revisions they are discussing is to refinance up to 125% loan value. One of the problems with this is that there has to be an investor that is willing to take a loan like this. There are very few investors out there that are willing to do this, and if they are, they are going to price risk into the rate that you get. They are going to do this by increasing your interest rate. I feel that, unfortunately, this program is going to be a failure like the programs before it. The intentions of this program were meant to be good, but there are very few people out there that are willing to take an investment that is already underwater.

If you have any specific questions about your situation, or what your options are, please check out my website further or give me a call. I can help you avoid foreclosure and failing programs such as the HARP program by short selling your home.

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