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President rolls out revised HARP program

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    Help for homeowners?

  • Duration 3:33
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Sixteen minutes after the top of the hour heads up to struggling homeowners relief may be on the way later this month.

The Obama administration plans to roll -- part 2.0.

It's the revamped housing program aimed at helping those Americans who -- underwater on their homes.

But is the program really a foreclosure fix or simply a political ploy.

Here to explain Fox News -- Bob -- good morning to -- Good morning Gretchen so a lot of people are looking forward to heart to what is it.

Well.

It is the extension of park one of his passes on -- the basically of homeowners.

The right to -- -- underwater to refinance.

And the most important thing that's happened on this is they've eliminated what we call the loan to value.

On fixed mortgages.

And basically used to be had to have a hundred yet to be -- 125%.

Loan to value.

On fixed mortgages that has been eliminated.

In the hopes of maybe opening up the gates for refinancing.

For people that are underwater.

All right so it sounds like it might be a good idea do you like it.

Well here's the thing let me let's talk about the eligibility of -- first of all it has to be Fannie and Freddie loan.

That was in effect on or before may 31 2009.

You have to be current.

On your payments for the last six months.

And you cannot be more than one time late in the last twelve months.

And the thing that's important here is -- defects fixed mortgages.

Only.

And that is the important part of this discussion today.

Are you saying that because there's a high percentage of people in that situation are not so many people in a -- -- Not so -- not is not as many for example what they've done.

Our Gretchen -- divided the country in the four acquired its northern southern western eastern quadrant.

And what we call the sand states which is the bad and Arizona's New Mexico and California and Florida it.

Most of those loans and last for five years Gretchen were adjustable rate mortgages right.

Most adjustable rate mortgages.

Essentially -- not even qualified because you have to be 105%.

Loan to value let's seal a three let's say 0300% 300000.

Loan to value of a 105% is -- 5000.

Most of these homes are -- 4050% underwater in addition let's say Gretchen you have a fixed.

Interest only loan for thirty years for twenty years whatever it may be.

If -- if you're assuming you're even eligible for harp which is not going to be easy to qualify.

Your payment.

Is going to go up why.

Because of -- refinanced.

Its refinance on a principal and interest payment.

Which is going that up your payment.

As opposed to make it -- -- -- at the beginning I said will this be a good idea will help people or is it a political ploy and Bob -- says.

I see it's it's it's it's something that he could use Obama could use a look at what I've done to try to help homeowners even the other day that press conference.

What he's talking about all these different types of things are now doing.

Where have they been for the last three and a half years or people been illegally foreclose on have lost their homes.

And although this may hate to help a small percentage it is not the cure I must say one more time before we go.

Principal reduction guys.

That's the direction we have to go and -- help this problem in America all right Bob Massi thanks so much for your insight no doubt helped a lot of people with us today thanks Bob we'll see you next week -- stretch of she -- her famed app.

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