Daniel H. Alexander - Attorney at Law

HAMP and HARP Mortgage Assistance Programs Extended Another Year

 

Financially strapped homeowners in need of mortgage relief are getting more time to take advantage of the federal government’s HAMP and HARP initiatives. U.S. Treasury Secretary Jacob Lew recently announced that both programs are being extended for a second time — until December 31, 2016.

 

Since its inception in April 2009, HARP (Home Affordable Refinance Program) has helped more than 3 million homeowners refinance their mortgages. The program is  set up to assist people whose homes have lost value, particularly those who owe more than their homes are worth. In the first quarter of 2014, HARP loans accounted for over 20% of all refinanced mortgages.

HAMP (Home Affordable Modification Program) is designed to help homeowners who cannot afford their current mortgages by arranging loan modifications. To date, the program has arranged more than 1 million permanent loan modifications.

Both programs were to end on December 31, 2013. Last year the federal government announced a first extension through 2015.