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April 8th, 2009

Reader: How Do I Make Use Of the HASP?

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A visitor to HSH.com submitted a question yesterday regarding Washington’s latest plan to improve the housing market.

Question: In the April 1 edition of “Bottom Line” you refer to the “Homeowner Affordability and Stability Plan”. How can I avail myself of the plan?

HSH Vice President Keith Gumbinger wrote a three-page feature in the April 1 edition of the periodical ‘Bottom Line Personal’ titled “Mortgage Rescue Plan — How You Can Benefit.” Here’s an edited version:

The Homeowner Affordability and Stability Plan (HASP) is designed to help homeowners who are facing foreclosure as well those who are struggling to make payments. The program is divided into two parts: loan refinancing and modification.

Whether you plan to refinance or modify your loan, the process should start with you the homeowner contacting your servicer and discussing the nature of your loan.

Make Sure Your “Low Cost” Refinancing Ensures Savings

Borrowers must have a Fannie Mae or Freddie Mac-owned loan to participate in the refinance portion of the HASP. Under the current circumstances, it’s only best to refinance if your current rate is 6.5% or higher — the savings from your new low rate should be substantial enough so that you may recoup your closing costs within two years or less. Moreover, adjustable rate borrowers should also seek out this program if their rate is likely to adjust higher before they plan to sell their home.

Incentives Make Modifications Enticing For Both Parties

Both the borrowers and the lender can benefit from the loan modification portion of the HASP. Your lender and the Treasury Department will work together to bring your mortgage payment down to 31% of your gross monthly income before taxes for up to five years.

Servicers are motivated by the $1,000 up-front payment they receive for each modified loan, as well as up to an additional $1,000 a year, for three years, if the borrower can stay current on their new loan. Borrowers, if you can stay current on your loan, you can receive up to $1,000 a year for five years.

For more information on this subject — such as eligibility and which type of loan you have — visit http://makinghomeaffordable.gov

For those borrowers who may not qualify for these initiatives, contact your lender — a refi or modification may still be available.

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3 Responses to “Reader: How Do I Make Use Of the HASP?”

  1. KIM Says: August 28th, 2009 at 5:26 pm

    Check out http://hasprogram.com … It is the best site to fill out the HASP form!

  2. Tim Manni Says: August 31st, 2009 at 11:41 am

    Kim,

    Is this site sponsored by the government or is it an independent site?

    -Tim

  3. Making a Loan Modification Sale – The Basics | Next Wave Marketing Strategies Says: October 8th, 2012 at 2:06 pm

    [...] on Housing Fraud and Scams (hsh.com)Avoid These Loan Modification Scams (refinanced.blogspot.com) Reader: How Do I Make Use Of the HASP? (hsh.com)Share this:TwitterFacebookMoreEmailPrintStumbleUponLinkedInRelated posts:Mandelman Matters [...]

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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