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In a positive development, the government agency that regulates the housing industry has announced key changes to the 2 year old HARP program that may open the door to refinancing for a million or more US homeowners. Key components of the revised program include:
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The new updates as announced by the President regarding the Home Affordable Refinance Program (HARP) will make the program more popular amongst the masses. As per the updated HARP, more number of people will be able to refinance their underwater loans as the current value loan cap of 125% has been removed. Due to this cap, a large number of people in the states of Florida and California, which were hardest hit by foreclosures, were not able to take advantage of HARP. It is expected that lenders will start offering this new HARP to homeowners on or after December 1st, 2011.
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