This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Homeowners who owe substantially more than the value of their homes are probably too far underwater to refinance their debt anytime soon. But those who have less debt soon may have an opportunity to refinance at lower interest rates; with renewed help from the government. The government has revamped its Home Affordable Refinance Program or HARP. It will help more borrowers refinance mortgages owned by Fannie Mae and Freddie Mac.
Eligibility for the new program remains restricted to mortgage borrowers who make monthly payments on time. Qualified borrowers must have unpaid loan balances that exceed 80 percent of the value of their homes. Almost all of the HARP refinancing in the past has gone to homeowners who owe less than what their homes are worth or a bit more. However, one big change has been the elimination of the maximum loan-to-value ratio. This will allow homeowners deeply underwater to have a better chance at refinancing. Another new feature of the HARP program is reduced liability for lenders. This is based on their promises that the refinanced loans conform to the underwriting standards of Fannie Mae and Freddie Mac.
The elimination of the loan-to-value ratio should help many South Florida homeowners. Because the South Florida housing market took especially hard hit, the number of borrowers beyond the 125 percent mark is very high. For the last few years, they were not able to take advantage of the program. This is because they were too far underwater. They should now be able to do once the new program is implemented.
Emil Fleysher is a South Florida attorney dedicated to helping individuals overcome financial hardships. As the founder of the Law Office of Emil Fleysher, P.A., he specializes in bankruptcy, debt settlement, foreclosure defense, and mortgage solutions.
A graduate of Nova Southeastern University Shepard Broad Law School (2009, honors), Emil has a strong commitment to consumer rights and has volunteered over 300 hours with Legal Aid of Broward County. His firm takes a personalized, client-focused approach to debt relief, ensuring individuals understand their options and regain financial stability.
For those facing overwhelming debt or foreclosure, Emil offers free consultations to explore the best solutions.
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