Underwater home loan refinancing assistance through the Home Affordable Refinance Program has been one way that homeowners who are in a negative equity situation have been able to find more affordability in their monthly mortgage payment. However, many feel that this program did not truly begin to get rolling until the end of 2010, which was a late start but has been able to offer benefits for homeowners who need more affordability and general underwater assistance on their home loan.
While the program is set to expire in 2011, there are those who feel that an extension may be near as this could help not only by offering more underwater mortgage assistance to homeowners, but it will go a long way in keeping the federal Making Home Affordable Program somewhat beneficial to homeowners, in an environment where many feel that HAMP has generally been a large failure.
According to HousingWire.com, officials and participants in the modification program have, in many cases, felt that a simple extension of the HARP initiative may be offered in 2011 as both this program is set to expire this year and the Making Home Affordable Program in 2012. Obviously, there are many homeowners who are still in need of foreclosure prevention assistance, and while there are alternative plans directly from servicers and state-specific home loan aid offered to homeowners, having the federal modification plan still in place with this underwater home loan refinancing option could do a great deal in terms of helping homeowners and servicers push through this difficult time in the housing market.
There are many who are calling for either the termination of the modification program or changes that could make it more effective, but concerns over what many feel to be a lackluster performance could eventually lead to these programs simply ending without extensions. However, underwater home loans are becoming more of problem in various areas across the nation and are in need of being addressed as numerous individuals are finding that they owe more on their home than their home is worth and this is either creating mortgage payment difficulties or an attitude on the part of homeowners where they simply want to walk away.
While, again, there are some indications that the Home Affordable Refinance Program may simply be extended in 2011 in order to give more homeowners the option of finding underwater mortgage payment affordability, there are those who feel that despite the fact that there is some hope for the program, the cost of the program and homeowner eligibility may not create a situation where HARP will be extended beyond its current expiration date. However, despite the fact that this program can be helpful and many feel that if certain issues were addressed more homeowners may find success through these underwater refinancing options, there are those who believe that even if HARP is not extended, supplemental programs will need to be offered in order to address not only continued drops in home prices in various areas across the nation, but problems still remaining from past devaluation.