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HARP 2.0 - will take effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than 125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent.
A few comments -
People can only take advantage if they have a Fannie Mae or Freddie Mac loan. I cannot count the number of people spoken too, who didn't know which investor held their loan. I have even spoke to people who were denied for a modification, finding out after the fact, their loan was held through fanny or freddie. It is the responsibility of the home owner to know this, the bank doesn't volunteer this information.
For borrowers that do not have a Fannie and Freddy held loan, your option is to do an in house modification. Pretty much using the same affordability guidelines.
Government programs like Hamp, Harp, and Hafa, are only helping a small percentage of home owners facing a hardship. These programs are so complicated, home owners are submitting documents waiting months, only to get denied. It's not that these programs don't work, the really big underlining problem is the banks approval process.
Many times home owners themselves directly attempt to work with their mortgage company's - the lenders only go one layer in their assistance and end up denying the homeowner, knowing fully well there is a required 2nd layer, or 3rd layer review needed for approval. The number one reason why people get denied, they don't want to go into that 2nd layer of help forcing them to reduce their profit.
I am refinancing now under HARP 2. I just finished sending over the last of the required docs to my lender (they asked for copies of my bank statements, income pay stubs/W2s, employment verification, homeowners insurance policy, condo board docs, etc). The appraisal was done last week (still dont know results of appraisal yet) and my estimated closing date is early January.
If for some reason, my apt appraises for more than 125% LTV, my closing date will be pushed up to early February. I am at a 30 year fixed, 4.875% (investment property). Seeing as rates are going down, the loan officer told me I MIGHT even get lower than 4.875 so we will see (crossing fingers).
I am refinancing now under HARP 2. (investment property).
I congratulate you for taking advantage of every program out there, but I personally feel Home Affordable Refinance Program (HARP) should not have included investment property/landlords.
Seems $13 billion of the tax payers money to help housing would have been better spent on the poorest of people instead of landlords in NYC, vacation homes in Miami, ski houses in Colorado, etc.
My wife made a casual inquiry at Wells Fargo back in September.
The loan broker/bank rep called me up to discuss.
It appears that my previous attempts were with people who didn't know what they were doing.
Rep said that it only matters that you have a job, not how much you make. This is significant.
Spousal unit went from a $95k job to a $23k job. __ I went from a $60k job to a $15k job.
Previous Wells Fargo people have simply said "don't even bother." I have gone through this over
and over. My choice is short sale or deed-in-lieu or keep paying friggin' 6.5% <------ bite me
I take $50k out of my IRA every year, but that doesn't count as income.
We have been called by the bank and sent documents that seem to show
that almost everything is OK and I should start a new loan in January.
I'll go from a $2,050 payment to a $1,650 payment. About $150 of the savings
is due to stretching out the loan from the 25.5 year to 30 again with a much
lower balance and $250 of the savings is from going from 6.5% to 5.125%.
$400/month is like getting about 4.5 payments made for us.
-o- We are not entitled to a market rate due to the 2nd note <------ bite me again
that is also on the property ( original purchase, not cash-out ).
-o- We are also not entitled to combine the 1st & 2nd - even though Wells owns the 2nd. - WTF?
-o- We are also not entitled to change the note to a 15-year -which I would have preferred.
Oh well. Since I am more pessimistic than most on the real estate market,
I'll wait for the 2% rates that I believe are coming and refinance again.
After that, rates will probably soar, but that's a few years out after the crash.
People can only take advantage if they have a Fannie Mae or Freddie Mac loan. I cannot count the number of people spoken too, who didn't know which investor held their loan. I have even spoke to people who were denied for a modification, finding out after the fact, their loan was held through fanny or freddie. It is the responsibility of the home owner to know this, the bank doesn't volunteer this information.
Email from our local real estate commission earlier this month included two links...one to find out if your loan is owned by Freddie and one to find out if it is owned by Fannie. Hopefully they help someone. I know know mine is owned by Freddie
However, the email also says the loan has to have been held by one or the other BY May 31st, 2009, and there is no real way of knowing that. But if I were going for a refi under this program, and my loan was CURRENTLY owned by Fannie or Freddie and I hadn't changed anything on my end since before that date (no refi or anything), I think I would have a pretty good footing to make an argument.
I congratulate you for taking advantage of every program out there, but I personally feel Home Affordable Refinance Program (HARP) should not have included investment property/landlords.
Seems $13 billion of the tax payers money to help housing would have been better spent on the poorest of people instead of landlords in NYC, vacation homes in Miami, ski houses in Colorado, etc.
Uhm.. FYI - I did not buy my condo as an investment property - the only reason it qualfied as such is because I moved into my husband's house when I got married and was forced to rent it because if I sold it, I would have to cut a check for $ 50K to the bank because the value of the property dropped over the past 3 years. Its not like I *wanted* to have this labelled an investment - if I had a choice, I would still live there but as it stands, even after I refinance, I am still paying an extra $ 500/month out of pocket because the rent ($1175/month) does not cover the mortgage/HOA/taxes ($1700/month).
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I am doing HARP 2 refi
Its not like I *wanted* 
