Blogs » A Constitutionalist & Believer in Natural Law » First HARP then HAMP and next HAMP II?

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We are hearing that home prices have hit bottom and are recovering from the housing bubble burst and home sales are moving up. Many economist warn that the federal credit for purchasing new housing which ends in April will need to continue to keep housing sales from dropping again. It will be interesting to see if the government will continue to spend more money on this program.

We were told that HARP (The Home Affordable Refinance Program) would save 4-5 million homes from foreclosures. This program required that the loans be controlled by Fannie Mae or Freddie Mac, home buyer could not be underwater on the mortgage, not more than thirty days late on the mortgage payment, and not have more than 20% equity in the home—the homebuyer could refinance your high interest mortgage rate to a lower rate.
In less than thirty days a new program emerged called HAMP (The Home Affordable Modification Program), this program was to save the homes of individuals behind on their mortgages as much as three months. The HAMP program eliminated many of the restrictions found in the HART program, for example, the homebuyer could be underwater on the mortgage without any restriction.

The “Mortgage Bankers Association” announced Friday that mortgage foreclosures have not slowed down; they have continued to rise to the current 4.58% level. So Washington is working on a program that require all mortgage foreclosures to be frozen, until they complete a trial program under HAMP. The lenders, the investors, and service providers contracts are being once again being re-written by the Federal government. The Federal government has determined that they can change the rule of contract law.

Will this new program be called HAMP II and work better than the other programs?