HARP Won’t Help Homeowners Says Bank

by Isaac Benmergui, Esq on November 22, 2011

The Obama Administration’s plan to help homeowners whose mortgages are underwater, the Home Affordable Refinance Program, isn’t inspiring confidence from every lender that the action will truly help the housing market. Anika Kahn, an economist for Wells Fargo, believes the only thing that will revitalize the market is time.

With almost half the homeowners in Broward and Palm Beach county holding on to a home that is worth less than what they owe, the newly expanded HARP plan seemed like a godsend. Under the plan, a homeowner is able to refinance their property at current market rates, thereby lowering their payments and avoiding foreclosure. But the criteria for qualifying to participate in the plan is strict, and Kahn believes it does nothing to promote home sales. Time may have to tell either way in this case.

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