Letters to the editor

A better road to prosperity

Were the pilgrims smarter than us? When the Massachusetts pilgrims organized their community, all products of foods (from harvesting, hunting and fishing), all clothing and all materials for protection were put into a common area and each resident took based on their need. The colony began to fail; disaster was pending (like with the Roanoke Island colony in North Carolina that totally failed). The leaders made an abrupt change in policy. Each family was allowed to keep and use what they produced. Productivity sharply increased. Most flourished. Sadly, some failed. But the community prospered and survived. Does this tell us something about human nature and the path we need to travel?

— Tomas J. MacDonnall, Winter Park

Rezoning of Park Avenue in Winter Park

It appears that the mayor and some of the commissioners want to reduce the zoning restriction of one block at the south end of Park Avenue. This would set a dangerous precedent.

The only problem in that block seems to be one rundown empty building that should be renovated and possibly divided into smaller spaces, which would make them easier to lease. Please don’t make short-term zoning changes that could create a long-term problem, a problem that could change the character of Park Avenue forever.

— Charles F. Riley, Winter Park

Struggling with your mortgage? Consider HARP or HAMP

If you’re looking for relief on your mortgage, you’re not alone. Nearly 54 percent of homeowners in Metro Orlando were underwater in the first quarter of 2012, according to Zillow, a firm that tracks real estate data. You may be able to ease the burden through the federal government’s Home Affordable Refinance Program (HARP) or Home Affordable Modification Program (HAMP). Both are designed to help borrowers avoid foreclosure by making their loans more affordable – but there are some key differences you should know.

Refinancing through HARP

If you’re current on your payments but think you’ll soon have trouble affording them, you may be a candidate for HARP. This refinancing option allows you to get the lowest possible mortgage rate when you owe more than your home is worth.

HARP is well-suited for those who can’t refinance through other means for various reasons, such as having a loan-to-value ratio that is too high. Record numbers of homeowners in this category are coming to Fifth Third Bank to discuss HARP, as the program begins to relieve some of Florida’s pent-up demand for refinancing.

You don’t have to be financially desperate to qualify for HARP. However, you need to have obtained your mortgage in May 2009 or earlier, and it must be owned by Freddie Mac or Fannie Mae. Additionally, you must owe no more than 150 percent of the current value of your home.

Modifying the terms through HAMP

For some homeowners, circumstances call for a more drastic solution, which is where HAMP comes in. HAMP allows your lender to modify an existing loan by lowering the interest rate, switching an adjustable-rate loan to a fixed-rate, changing the length of the term or reducing the amount you owe. Since the government subsidizes the modifications, your lender can give you more breathing room.

To qualify for HAMP, you must have obtained the loan before Jan. 1, 2009. You also need to prove financial hardship – whether through loss of income, a change in employment or an increase in expenses like a mortgage rate adjustment or unexpected medical bills. Finally, you must have fallen behind on payments or be in danger of doing so.

If you’re not eligible for HAMP, discuss your needs with your lender, because some offer similar modification programs.

Should you apply?

Both HARP and HAMP are set to expire Dec. 31, 2013, and interest rates aren’t guaranteed to stay low until then.

In general, it’s worth applying for a HARP refinance if you can reduce your interest rate by 1 percentage point – and you may be able to save even more. At Fifth Third, the process typically takes about 60 days from start to finish.

Either way, it can’t hurt to explore your options. Applying for HARP or HAMP won’t negatively impact your credit, as long as you stay current under the new terms. For many homeowners, that amounts to some much-needed good news.

— Andy Insua, Florida mortgage director for Fifth Third Bank