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Old 12-06-2012, 10:41 AM
 
1,437 posts, read 2,014,620 times
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I'd like to try and refinance my home under HARP. I have a set of loans which are effectively 80/20.

The 80 loan is Freddie Mac.

I searched around and saw some posts where Quicken Loans won't do anything for you if you have a Freddie Mac loan. Another poster mentioned using USBank as a lender. I called them up and they said the only way I could qualify for HARP 2.0 was to use my own lender and that it had to be 105% LTV. Is that true, or more hogwash?

I have been trying to get Bank of America to modify or refinance or modify my loan since 2008 with no luck under MHA. They always "lose my paperwork". They have now assigned the loan to GreenTree lending which is a real pain in the neck too.

Any ideas who won't blow smoke up my behind along with additional hard inquiries to get my Freddie Loan (or even both loans refinanced under HARP 2.0)?

I have income, my credit is perfect, I am underwater and have hardships.

Thanks!
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Old 12-06-2012, 07:09 PM
 
Location: Farmington Hills, MI
19 posts, read 36,262 times
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If Fannie backed your loan, I could've easily refinanced the 80. However, other good options still exist out there. If you're a vet, your first choice should be USAA. If not, then look into a few of the trustworthy big banks like Wells Fargo, Flagstar and BB&T. I would avoid Quicken at all costs.

As for your LTV issue, various banks have various policies regarding this aspect of mortgages. Being underwater increases your LTV significantly, essentially branding you as a high risk loan, since the value of the home is much lower than the loan amount. You can calculate your own LTV by dividing the bigger number by the smaller number, which in your case would be the loan amount divided by the value of the home.

This service helps give a rough idea of the value of your home: https://www.citimortgage.com/Mortgag...omeValueFinder
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Old 12-07-2012, 06:00 AM
 
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Quote:
Originally Posted by chri_s View Post
If Fannie backed your loan, I could've easily refinanced the 80. However, other good options still exist out there. If you're a vet, your first choice should be USAA. If not, then look into a few of the trustworthy big banks like Wells Fargo, Flagstar and BB&T. I would avoid Quicken at all costs.

As for your LTV issue, various banks have various policies regarding this aspect of mortgages. Being underwater increases your LTV significantly, essentially branding you as a high risk loan, since the value of the home is much lower than the loan amount. You can calculate your own LTV by dividing the bigger number by the smaller number, which in your case would be the loan amount divided by the value of the home.

This service helps give a rough idea of the value of your home: https://www.citimortgage.com/Mortgag...omeValueFinder
Thanks but under HARP 2.0 there was no LTV cap.
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Old 12-07-2012, 07:42 AM
 
4,483 posts, read 7,947,544 times
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Quote:
Originally Posted by va_lucky View Post
I have income, my credit is perfect, I am underwater and have hardships
It really depends on your situation. If you have good income to pay for the house and have not suffered any hardships that would affect your credit they may not see it as a hardship just because you are underwater. Granted I dont know anything about your situation, but the banks typically are more likely to approve something like this if they think you will default. If your at no risk to default, why should they care?
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Old 12-07-2012, 10:04 AM
 
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Originally Posted by 399083453 View Post
It really depends on your situation. If you have good income to pay for the house and have not suffered any hardships that would affect your credit they may not see it as a hardship just because you are underwater. Granted I dont know anything about your situation, but the banks typically are more likely to approve something like this if they think you will default. If your at no risk to default, why should they care?
Thanks, but I have not even been able to get as far as discussing my income and/or hardships. I am instantly told NO before I even get to hardships or income. I didn't even get to a pre-screen!
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Old 12-07-2012, 10:30 AM
 
4,483 posts, read 7,947,544 times
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Quote:
Originally Posted by va_lucky View Post
Thanks, but I have not even been able to get as far as discussing my income and/or hardships. I am instantly told NO before I even get to hardships or income. I didn't even get to a pre-screen!
Probably because you are still paying on time every month. If your paying on time, your paying the loan as agreed. They do not see a problem. (wink) Its only when you stop paying that they want to talk with you and work something out.

Loan modifications are typically for people with serious money issues.
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Old 12-07-2012, 10:36 AM
 
1,437 posts, read 2,014,620 times
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Quote:
Originally Posted by 399083453 View Post
Probably because you are still paying on time every month. If your paying on time, your paying the loan as agreed. They do not see a problem. (wink) Its only when you stop paying that they want to talk with you and work something out.

Loan modifications are typically for people with serious money issues.
The requirement for HARP 2.0 is that you have essentially paid on time for the last 12 months.

HARP is not a loan modification. It is for refinancing. I think you are thinking about HAMP.
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Old 12-07-2012, 12:26 PM
 
4,544 posts, read 11,553,746 times
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Quote:
Originally Posted by va_lucky View Post
Thanks but under HARP 2.0 there was no LTV cap.
No cap per Fannie and Freddie, but lenders can put their own overlays on top of Fannie/Freddie requirements. I am only allowed to go to 105% when selling HARP loans to US Bank. The 105% only pertains to the 1st mortgage though. There is no limit on how high the combined loan to value is when you factor in 2nd mortgages. You can only refinance the 1st though. The 2nd gets subordinated and stays "as is".
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Old 12-07-2012, 12:38 PM
 
1,437 posts, read 2,014,620 times
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Originally Posted by TimtheGuy View Post
No cap per Fannie and Freddie, but lenders can put their own overlays on top of Fannie/Freddie requirements. I am only allowed to go to 105% when selling HARP loans to US Bank. The 105% only pertains to the 1st mortgage though. There is no limit on how high the combined loan to value is when you factor in 2nd mortgages. You can only refinance the 1st though. The 2nd gets subordinated and stays "as is".
Thanks, this is what I have been noticing when I call around. I called Flagstar based on what Chri_s mentioned. Virginia law says that there is automatic resuboordination...what does that mean?

Automatic Subordinations in Virginia | Charlottesville Real Estate Blog
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