In case you are underwater on your own home, chances are high you are like many Individuals, and me, throughout the nation. What do I imply by “underwater”? I imply that your own home is value lower than you owe. So for instance, you house may very well be value solely $150,000 and the quantity you owe may very well be $300,000. That is not the very best scenario to be in. Nobody likes having destructive fairness of their house; you possibly can’t borrow in opposition to it and you’ll’t refinance it (often). After which there are the intangibles…you’re most definitely depressed and distraught over the scenario and really feel like there isn’t any finish in sight. Have you ever questioned how Wall Road banks may very well be bailed out after they tousled the housing scenario and why you are caught paying off your month-to-month mortgage fee whenever you did nothing fallacious besides possibly purchase on the fallacious time – ie, the peak of the bubble? I positive did. I used to be tremendous pissed off that Wall Road tousled they usually acquired us, the taxpayer, to bail them out after I, the house owner, was caught the other way up on my house. Just lately, I began to sing a distinct tune. I discovered about this new program known as House Inexpensive Refinance Program or HARP 2.0. After performing some analysis I discovered that this program permits for some underwater householders to refinance their house. Being underwater myself, I checked out this program and began to analysis if I might qualify for the HARP Loans program. I learn that I wanted to have a mortgage owned by Fannie Mae or Freddie Mac. Verify. I needed to have purchased my house earlier than Could 31, 2009. Verify. I needed to be present on my mortgage funds. Verify. I could not have used any earlier model of the HARP mortgage program. Verify. It took about 60 days to finish the refinance however I lastly acquired this taken care of and am saving $300 per 30 days on my mortgage fee. There was one hiccup that just about hindered the HARP Mortgage from going by means of. I needed to subordinate my second mortgage with my present financial institution. This took a while however I used to be proud of the end result. What does it imply to “subordinate” my second mortgage? This implies the 2nd mortgage won’t transfer to first place after the first mortgage is paid off. HARP 2 is meant for 1st liens solely – not 2nd or third liens. Historically, whenever you repay your first mortgage, the second mortgage hops up into the primary place. However to verify the 2nd mortgage stays in place, it must be subordinated. It does not matter in case your second mortgage is backed by Fannie Mae or Freddie Mac. These mortgages, I discovered, are principally ignored as a part of the HARP 2.Zero program. I additionally lowered my rate of interest a complete level. I’m stoked! I encourage anybody who’s underwater on their house to test their eligibility to see if they’ll make the most of this program.