After much discussion about the effectiveness of the government’s previous refinancing initiative, the Home Affordable Refinance Program has been revamped to reach more homeowners at risk of foreclosure. Now that the HARP 2.0 has been released, more states are reporting an increase in interest of the program.
Supporting Underwater Mortgages
HARP is a government funded loan program that is designed to help homeowners who owe more on their mortgage than what the home is worth. With more homeowners drowning under sinking mortgages, the new HARP 2.0 has broadened its scope and loosened qualification standards to help homeowners who may not have previously qualified.
One of the more hopeful signs that the renewed program may be more effective this time around is the fact that some of the hardest hit states are the ones reporting the highest levels of program interest. Although not officially available until last month, there have already been over 11,000 inquiries into the HARP program since the news broke late last year. California and Florida top the list, each bringing in close to 2,000 HARP inquiries. Other front runners include Arizona, Georgia, Michigan and Nevada.