New Refinancing Rules May Help Homeowners

Nov. 11, 2011 - PRLog -- Contact
Scott Kleiman, Law Firm of Kalis & Kleiman
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New Refinancing Rules May Help Homeowners

Davie, FL – New rule changes to the Home Affordable Refinance Program (HARP) (http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx) announced by the Federal Housing Agency (http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf) may make it easier for more homeowners to refinance their home mortgage.

HARP is unique in that it is the only refinance program that enables borrowers who owe more than their home is worth to take advantage of low interest rates and other refinancing benefits. The new rule changes include:

  * Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
  * Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
   * Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;
   * Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and
   * Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

To qualify, your home loan must be owned or guaranteed by either Freddie Mac or Fannie Mae. Borrowers must also be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months.

Mortgage lenders and servicers are expected to get detailed information on the changes by November 15; some could begin offering refinancing under the new rules as soon as December others may vary as individual lenders, mortgage insurers and other market participants modify their processes.

Due to the complicated nature of loan modifications, short sales and foreclosures, it is imperative that homeowners facing a modification, sale or purchase of a home or even a foreclosure to seek sound legal advice and counsel. KALIS & KLEIMAN, P.A. is a recognized and experienced Real Estate, Foreclosure Defense, Bankruptcy, and Commercial Litigation law firm. Neal R. Kalis, M. Scott Kleiman and Olga Ruiz Baken pride themselves on not just being lawyers, but being lawyers and trusted counselors. The firm's personal attention to its clients' needs and desired results produces a customized approach that this firm delivers to each case. Neal and Scott are AV-rated, which indicates that an attorney has reached "the height of professional excellence" and is recognized for the "highest skill and integrity." They have more than 50 years of combined experience, and they have participated in thousands of transactions, settlements and trials. KALIS & KLEIMAN will help you through the entire process in order to help you reach an outcome that is the most beneficial to your future. KALIS & KLEIMAN has earned a reputation of legal excellence and a history of successfully loan modifications, short sales and managing foreclosure cases.

The law firm of Kalis & Kleiman focuses on Commercial and Real Estate Law. The firm was founded in 1996 and is headquartered in Davie, Florida, at 7320 Griffin Road, Suite 109. Attorney Neal Kalis, M. Scott Kleiman and Olga Ruiz Baken can be contacted at 954.791.0477. Additional information about the law Firm of Kalis & Kleiman may be obtained from the firm's website at http://www.kaliskleiman.com or on Facebook at http://www.facebook.com/KALISKLEIMAN.

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