Borrowers struggling with their underwater homes are being offered possible relief in a new program by Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Financing Agency.
It's called Home Assistance Refinancing Program 2.0, and its promoters say it would allow those with a perfect mortgage history, strong overall credit, a steady job, and some money in the bank to refinance into a new lower rate even though they currently owe more on their homes than they are worth.
But numerous mortgage professionals who spoke with WND say the program is likely to fail to have a significant impact because of its nebulous rules.
Further, they say that this program, when combined with failures in other mortgage programs, reveals a pattern of policy making that is naively compassionate but fails in the real world.
HARP 2.0 follows on the heels of HARP, which was rolled out in the beginning of 2011. HARP allowed borrowers owing up to 125 percent of the value of the home, otherwise called loan to value, to refinance with otherwise strong credit.
Brad German, spokesman for Freddie Mac, touted the success of that effort in an email, stating, "During the first nine months of this year, Freddie Mac has financed 312,000 single family mortgages – 67 percent of them were refinancings under our Relief Refinance Program or other refinance options."
Still, the program received complaints because so many borrowers were so severely under water that capping the LTV at 125 percent left a lot of people without the option to refinance. So, HARP 2.0 was to be rolled out this month to waive all LTV requirements.
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Aaron Zeitner, a Chicago area mortgage professional with nearly a decade of experience in mortgages, says his own anecdotal experience with the program was far less fruitful.
"Sure, Fannie and Freddie might allow 125 percent LTV but that doesn't mean the individual banks will follow them," he said.
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New rumors are circulating about the cause of death of both Brittany Murphy and her husband, Simon Monjack. Brittany Murphy’s mother, Sharon Murphy, claims that both her daughter and son-in-law died from exposure to toxic mold that was growing in their home. Brittany died in December 2009 and five months later, her husband also passed away. Pneumonia was the leading cause of death in both cases. They purchased their home in 2003 and later identified some problems with the structure and seeping water that could of created conditions that would of promoted mold growth.
The culprit could be related to toxic mold that was growing in their home. Speculations on whether or not mold was the culprit is still under suspicion. However there is evidence that individuals who suffer from asthma, allergies or lung deficiencies are more susceptible to falling victim to a long list of symptoms caused by mold. Minor symptoms include allergic reactions, irritations of the eye, nose and throat, sinus congestion, and other respiratory problems. More severe reactions include fever, pulmonary hemorrhage, memory loss and shortness of breath. Immunocompromised individuals with chronic lung diseases like COPD have a higher chance of developing fungal infections in their lungs. Persons with persistent symptoms should see their doctor immediately.
Rapid Recovery Service has certified and experienced mold remediation experts available to quickly evaluate, test, estimate, contain, and remediate mold, mildew, and fungus that may appear in your home, office or commercial building.
It is essential to remember mold resulting from water damage or a lack of proper ventilation is progressive. That is why “Timely” action must be taken by homeowners when the water damage occurs or mold is first noticed. The longer water flows or wet, damp, dark conditions exist, mold will colonize and absorb into building materials, resulting in a greater recovery problem. Merely stopping the source of the incoming water does not stop further water damage and often causes secondary damage which may be excluded on most typical homeowner insurance policies.