GSIG LLC

Good news for “underwater” homeowners! Starting tomorrow, they can start submitting applications under a revised government program meant to make refinancing easier.

The Obama Administration announced this fall it’s making changes to the Home Affordable Refinance Program so more struggling homeowners can take advantage of it.

The government is doing away with a cap that prevented borrowers whose mortgages exceed 125% of the value of their homes from being eligible for the program. Other changes include reduced risk for lenders and lower fees for borrowers.

Furthermore, Fannie Mae now says it will allow some homeowners to refinance even if they’ve had a foreclosure in the past seven years.

Paton wishes more people knew about the program, saying it’s the best opportunity yet for homeowners to get out of underwater mortgages and refinance into 15-year loans without a huge hit to their monthly budgets.

According to research by Corelogic, the revamped program potentially could help tens of thousands of homeowners in South Florida who owe far more than their homes are worth. More than four out of 10 residential properties with a mortgage in Broward and Palm Beach counties are underwater.

While tomorrow is the official launch date nationwide, some lenders may not be prepared to accept applications right away.

Among the criteria homeowners must meet:

• They need to be current on their mortgage payments.

• The loans must be backed by Fannie Mae or Freddie Mac, the government-run companies that guarantee about half of all home loans nationwide.

• The loans must have been bought by Fannie or Freddie no later than May 31, 2009.

To find out if your loan is owned by Fannie, click here. To see if it’s owned by Freddie, click here.