Many homeowners are trying to take advantage of the Home Affordable Refinance Program (HARP). And some are finding that it's not easy.

The basic eligibility is simple enough:

oYour current mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. You can check that right here:ohttps://www.knowyouroptions.com/loanlookup ohttps://ww3.freddiemac.com/corporate/

oYour current mortgage must have been sold (sold; not just closed) to Fannie Mae or Freddie Mac on or before May 31, 2009

oYour current mortgage must not have been previously refinanced under HARP

oThe loan-to-value ratio (LTV) must be greater than 80%

oYou must be current on your mortgage at the time of the refinance with a good payment history over the most recent past 12 months

So why are homeowners having so much trouble? Well; there are two reasons:

First: Not all mortgage servicers are actually lenders. All these servicers can do in modify your existing mortgage; not originate a new one. What's the problem with that? The problem is that in order to qualify for the Home Affordable Modification Program (the government program that allows servicers to modify your current mortgage to one with more desirable terms); you must be behind on your mortgage payments. Because the only option these servicers have to offer is to modify your current loan; there are a great many consumers who are being advised to get behind on their monthly mortgage payment to qualify for this program. Don't do it! You likely have a better option...keep reading.

Second: What the government giveth the lenders taketh a way. Lenders have to protect their risk. They certainly don't want to end up with even more risky loans on their books. They do this by putting in place stricter guidelines to HARP refinances. Here are just a few:

oThey restrict the maximum LTV they will allow. Some at 150%; some as low as 100% (and even less if your property is an investment).

oIf your current mortgage has Mortgage Insurance; you have even fewer options. Some lenders won't even consider your loan. Others put more restrictions on the maximum LTV.

oThere are credit score requirements you must meet.

oSome lenders will only consider allowing you to refinance your home under the HARP program if they are currently the servicer on your loan. oSome lenders will only consider primary residences; while other will do investment property.

Consumers are best served by seeking out a well-recommended Mortgage Consultant (originator) who can help them navigate the multitude of challenges to refinancing your home. You can refinance; even if you owe more than the value of your home. The key is you need to be working with the right person. I recently had a borrower thank me for being a good advocate for her. That's exactly what you need! If you don't have an advocate, find one! Or you'll be singing the HARP blues too.