I've been wondering about this too, actually—haven't heard much about HARP in ages, but I keep seeing ads for these "replacement" programs. Makes you wonder if they're just piggybacking off the old name recognition or if there's actually something new and worthwhile behind it. Also makes me curious: with AVMs improving and home values climbing in many areas, are underwater mortgages even as common now? Maybe that's why HARP faded away...?
"with AVMs improving and home values climbing in many areas, are underwater mortgages even as common now?"
You'd be surprised—there are still pockets where homeowners haven't quite caught up yet. Sure, AVMs have gotten better, but they're still just algorithms...and trust me, I've seen some wild valuations lately (like my neighbor's house suddenly worth double mine—yeah right). As for these new "replacement" programs, honestly, most seem like rebranded marketing gimmicks. I'd tread carefully before jumping into anything that sounds too good to be true.
"Sure, AVMs have gotten better, but they're still just algorithms..."
Exactly this. While AVMs can be helpful, they're far from perfect—especially in neighborhoods with mixed housing types or recent renovations. I've had clients whose homes were undervalued significantly because the AVM didn't factor in major upgrades they'd done. And yes, underwater mortgages aren't as widespread as before, but they're definitely still around in certain markets...particularly where recovery has been uneven or slower than average. Always worth double-checking valuations manually if you're considering refinancing options like HARP replacements.
"Exactly this. While AVMs can be helpful, they're far from perfect—especially in neighborhoods with mixed housing types or recent renovations."
Yeah, I've seen this happen quite a bit myself. A couple years back, I had a property that was completely renovated—new kitchen, bathrooms, flooring, the works—but the AVM still valued it as if it were stuck in the 90s. It was frustrating because the appraisal came in significantly higher once we got an actual human appraiser involved. Algorithms just can't always capture those nuances.
On the other hand, I've also seen AVMs overshoot values in neighborhoods where there's been a sudden spike in sales prices due to speculative buying or short-term market hype. So it's not always undervaluation; sometimes they swing too far the other way. Either scenario can cause headaches when you're trying to refinance or sell.
Speaking of refinancing, I'm curious if anyone here has recently navigated the newer programs that replaced HARP? I know HARP itself ended a while ago, but there are still some streamlined refinance options out there for underwater or near-underwater mortgages. Wondering how strict lenders have gotten lately with eligibility criteria and valuations...
I looked into this recently when I was refinancing last year. From what I gathered, HARP itself is long gone, but there are still some similar streamlined refi programs out there (like FMERR or HIRO, I think?). Anyway, lenders seemed pretty cautious about valuations—mine definitely wanted a full appraisal instead of just relying on AVMs. Can't say I blame them though, given how off-base those algorithms can be sometimes...