Some struggling homeowners are getting stuck with relatively high interest rates even after they participate in the government’s HARP program to help them refinance their mortgages. According to an article in ProPublica, the biggest banks are not lowering rates as much as they should be.
HARP, the Home Affordable Refinancing Program, allows underwater homeowners with loans backed by Fannie Mae and Freddie Mac to refinance. A report by Amherst Securities says that big banks make considerable profit from refinancing their existing customers under HARP, which leave little incentive for banks to offer HARP loans outside their won customer base. The lack of competition means that many homeowners are stuck with mortgages they can’t afford and banks can charge higher interest rates, which does little to help underwater home owners.
The heart of the issue is that struggling homeowners put false hope in these programs when they should consider strategic default or Chapter 13 Bankruptcy instead.
Cossitt Law, based in Kalispell, Montana, not only offers bankruptcy guidance and planning, they can help you determine the best path for dealing with home foreclosure. Do not delay, contact Montana’s only dual-board certified attorney today at (406) 752-5616 for a consultation to ensure a successful outcome.