Harp 2 or no?

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I have a very upside down mortgage. 7% interest only loan until 2016. Haven't been able to put any money really towards the principle. Right now I can't qualify for harp 2because I owe more than what the house is worth. however if I put more money into the principle, I would be eligible. I would have to put in about 23,000 dollars. Do you think it is worth pulling that money from my savings in order to get out of this god awful mortgage I currently have

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Right now I can't qualify for harp 2because I owe more than what the house is worth

Hi Jmm239 - HARP 2 was created to hel... (more)

david6117 (Aug. 28, 2012 @ 11:36a) |

in the exact same boat with same lender. lmk if you get anyone to lend high dti

haloseven (Aug. 28, 2012 @ 7:10p) |

Hi guys...

As noted below the whole point of Harp II is to refinance underwater mortgages. I just completed a refi with a... (more)

floridarents (Nov. 11, 2012 @ 12:45a) |

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I read your post and said ... oh $h1t so loud that my wife in the kitchen said whats wrong? I said oh nada...looking at a website.

Good luck bro!

the whole point of HARP 2 is that there is no LTV limit. you should not have to apply any funds to the principal. find a lender that will close the loan. you can be upside down 10 times over.

peeps4life said:   the whole point of HARP 2 is that there is no LTV limit. you should not have to apply any funds to the principal. find a lender that will close the loan. you can be upside down 10 times over.

Not quite sure it's 10 times over, I believe it's closer to 150% (so 1.5 times over )

I'd definitely shop around to see what you can find.

mpaluzzi said:   peeps4life said:   the whole point of HARP 2 is that there is no LTV limit. you should not have to apply any funds to the principal. find a lender that will close the loan. you can be upside down 10 times over.

Not quite sure it's 10 times over, I believe it's closer to 150% (so 1.5 times over )

I'd definitely shop around to see what you can find.

the actual program does not limit LTV...only the individual lender overlays do.

definitely start looking/shopping around.

how far underwater?

See if you qualify for HAMP - read this article http://realestate.msn.com/article.aspx?cp-documentid=23397161

How upside down? What State are you in? What other assetts do you have? How old are you?

I ask as is it better trying to keep the house than walking away?

I want to keep the house and can afford my payment. However none of it is going toward the principle. How do I find out where else to shop. I'm in nj.

I don't qualify for hamp because I have never missed a payment

Miss a payment, then you will qualify for HAMP.

Would I really qualify if I miss just one though?

Call your current lender and ask if you qualify for a refinance under the HARP.

Post their name and response here.

Also... If you cannot afford to pay extra on your mortgage, you may not be able to refinance and afford it.
Your payment will probably go up once you pay more than just interest.

I have seterus unfortunately. They don't do harp. Spoke to quicken loan. My main goal though is to get out of an interest only loan. I'm paying $2800 a month and none of that is going towards my principle.

As mentioned, your LTV would not disqualify you for HARP 2. You have $23k+ in savings and a 7% mortgage? You should have been able to put some money towards principal, and you would have gotten a good return. Don't miss a payment for HAMP, you should qualify for HARP2.

chocula said:   Also... If you cannot afford to pay extra on your mortgage, you may not be able to refinance and afford it.
Your payment will probably go up once you pay more than just interest.


An IO payment at 7% is the same as a 30 year payment at 5.75%. His rate/payment would presumably be much lower.

Jmm239 said:   I have seterus unfortunately. They don't do harp. Spoke to quicken loan. My main goal though is to get out of an interest only loan. I'm paying $2800 a month and none of that is going towards my principle.

Is your loan FNMA/Freddie? Your current lender doesn't have to participate. If your loan is fannie/freddie, you could refinance elsewhere with a lender that does HARP loans. So you also have a jumbo loan and honestly, I'm not sure how, if at all, that affects your situation. If your loan isn't fannie/freddie, you have to just see if your current lender has any programs to help you. If you can't refinance, I would say it's a good idea to put as much of your savings as you can afford to your loan and continue making principal payments to your loan at 7% (you're not going to beat that risk free rate). This is of course assuming you plan to keep the house, which you said you are.

What happens to your loan in 2016?
Out of curiosity, what is the value of the home?

I don't know but I just do not feel sorry for you. $2800 interest only payment each month? Why would you ever get a loan like that?

WhiteGuy said:   I don't know but I just do not feel sorry for you. $2800 interest only payment each month? Why would you ever get a loan like that?

Its called getting your first home in your twenties and obviosly not being steered in the right direction. BTW I didn't come on here to get sympathy votes. I came on here to get some educated thoughts on my situation.

BingBlangBlaow said:   Jmm239 said:   I have seterus unfortunately. They don't do harp. Spoke to quicken loan. My main goal though is to get out of an interest only loan. I'm paying $2800 a month and none of that is going towards my principle.

Is your loan FNMA/Freddie? Your current lender doesn't have to participate. If your loan is fannie/freddie, you could refinance elsewhere with a lender that does HARP loans. So you also have a jumbo loan and honestly, I'm not sure how, if at all, that affects your situation. If your loan isn't fannie/freddie, you have to just see if your current lender has any programs to help you. If you can't refinance, I would say it's a good idea to put as much of your savings as you can afford to your loan and continue making principal payments to your loan at 7% (you're not going to beat that risk free rate). This is of course assuming you plan to keep the house, which you said you are.

What happens to your loan in 2016?
Out of curiosity, what is the value of the home?


My loan is a Fannie Mae. At this point I'm just trying to search for other participaters of the harp program.

What did Quicken say? They should be able to do the HARP 2 regardless of your LTV.

I did not do the math on the I/O loan versus fully amortized, but wanted OP to know that they need to be aware of it.

My main point is that I believe that you have asked the wrong people or have been given the wrong information.

If you want to past more details we may be able to figure out who can do you loan.

Jmm239 said:   I have seterus unfortunately. They don't do harp. Spoke to quicken loan. My main goal though is to get out of an interest only loan. I'm paying $2800 a month and none of that is going towards my principle.

Welcome to the club. Seterus is like a brick wall. Leave the house and thats it. Seterus is crap!

i would shop around. i started a refi with my orginal lender which i though i was getting a decent deal. then after getting dicked around & keeping an eye on the rate drops, i jumped ship.
do you know if you have pmi or lpmi?
i was able to refi my lpmi loan through guaranteed rate.com .
if you have lpmi find out if it was paid up front through your mi holder.
mines was ugi, they where very helpful over the phone.
from what i understand if it was paid upfront, the transfer of mi is much smoother.
best of luck

Jmm239 said:   I have a very upside down mortgage. 7% interest only loan until 2016. Haven't been able to put any money really towards the principle. Right now I can't qualify for harp 2because I owe more than what the house is worth. however if I put more money into the principle, I would be eligible. I would have to put in about 23,000 dollars. Do you think it is worth pulling that money from my savings in order to get out of this god awful mortgage I currently have

You're only discussing the qualification itself. How about showing your current loan and the loan you're looking to get (rate, length, monthly payments) to we can see how much better the new loan would be.

Also, even if you can't refi, right now, any savings you put towards principal reduction will yield you a guaranteed 7% rate of return (minus the tax rate for the mortgage deduction of course). You might want to think about putting some money there for that reason assuming there's no early repayment penalty.

7% interest rate, $2,800 interest only payment => ~480,000 loan?

I'm in not in the exact same situation as thytimo (we're at 6.8%) and everyone keeps telling me the same thing they're telling thytimo: Do HARP 2.O. My husband and I have a combined 770 credit score, we've never missed a payment and we're above a 150% LTV. Our current servicer, OCWEN, refuses to participate in HARP 2.0. For 6 months, I've shopped for lenders -- even with those who say they have no limit on LTV -- and no lender will touch our loan. I had a mortgage broker "approve us" for HARP 2.0, but all approached lenders refused. That's the reality out here. The lenders are refusing to take seriously underwater properties, even if they say they do. My Senator is looking into it for us. BTW, we're Freddie Mac.

Oops, I meant everyone is telling me the same thing they're telling Jmm29.

thytimo said:   7% interest rate, $2,800 interest only payment => ~480,000 loan?

7% interest rate. We bought the house for 349,000. My principle is around 330,000. The home's value is now at 240,000, which is so wrong b/c we have put so much work into this house. Unfortunately, Quicken Loans told me that they only enter the address through their software, and that is what it is coming back is. I wish that I could actually get an actual appraiser to change that number. I just want to try to rewrite this whole loan. I know that I made the mistake of getting into this mortgage. However, I'm just hoping HARP could be the last resource, otherwise I just have to stick this out. Quicken said they could go up to 125%. I'm just clueless as to how to get in touch with other lenders. Is there a website that has a list of them?

jmm, check out the harp 2 topic in this forum as well as zillow.com
i also tried quicken before and had a road block due to my my holder.

You need to find out why you're not able to refi with HARP 2.0. I doubt the LTV is the issue. Do you have lender or borrower paid PMI (did you put down less than 20%). It seems like most of the HARP issues have related to having lender paid PMI.

I know people who are at 200% LTV and have refi'd recently under HARP 2.0, same servicer though, which granted is a big difference.

massajimson said:   I'm in not in the exact same situation as thytimo (we're at 6.8%) and everyone keeps telling me the same thing they're telling thytimo: Do HARP 2.O. My husband and I have a combined 770 credit score, we've never missed a payment and we're above a 150% LTV. Our current servicer, OCWEN, refuses to participate in HARP 2.0. For 6 months, I've shopped for lenders -- even with those who say they have no limit on LTV -- and no lender will touch our loan. I had a mortgage broker "approve us" for HARP 2.0, but all approached lenders refused. That's the reality out here. The lenders are refusing to take seriously underwater properties, even if they say they do. My Senator is looking into it for us. BTW, we're Freddie Mac.

You should qualify. Search my name and see my thread. I tried to refi so many times w/o luck over three yrs. Finally, HARP 2 allowed me to. And, by the way, I'm 60% underwater. It wasn't easy but it worked out. If you're in as bad shape as me, you'll need appraisal but it won't deny you rather simply affect your rate. LTV does not matter. I'm now saving $485 a month. Still a horrible scenario but better...

To qualify for a HARP loan your current loan must have been sold to Fannie Mae or Freddie Mac prior to June 2009.

How do you know if they own your loan? To check, just follow these links to look it up:

"Does Fannie own my loan?" http://www.fanniemae.com/loanlookup/
"Does Freddie own my loan?" https://ww3.freddiemac.com/corporate/

Lenders and pricing are very different when it comes to HARP 2.0 with many not doing unlimited LTV.
As a broker I am admittedly biased but this is one loan product where a broker representing multiple wholesale conduits will benefit you in order to find a suitable HARP 2.0 lender for your scenario.
Every scenario is unique and feel free to PM me with any specific questions regarding your scenario.
-Adam
Old Hippy & Mortgage Pro

Did you already do a modification?

I don't want to to do that. Would kill my credit score and my lender told me that it's really just a short term fix.

Jmm239 said:   I don't want to to do that. Would kill my credit score and my lender told me that it's really just a short term fix.

All modifications are different.

I just did one that was processed As a normal refinance , paying off the existing loan and starting a new one. Got 1% fixed for 30 years

SUCKISSTAPLES said:   Jmm239 said:   I don't want to to do that. Would kill my credit score and my lender told me that it's really just a short term fix.

All modifications are different.

I just did one that was processed As a normal refinance , paying off the existing loan and starting a new one. Got 1% fixed for 30 years


Honestly, Seterus is so awful that they probably wouldn't even offer me a loan like that. They only had a standard loan modification offer for us and basically in so many words, told us not to do it. I wish I had another lender. We originally had JP Morgan, but the mortgage got transferred over to them.

Seterus is a strictly a mortgage servicer and no one has good things to say about them.
If you qualify for HARP a good mortgage broker will be able to advise, analyze and show you the benefits, and know exactly where to send your loan.
-Adam
Old Hippy & Mortgage Pro

Jmm239 said:   SUCKISSTAPLES said:   Jmm239 said:   I don't want to to do that. Would kill my credit score and my lender told me that it's really just a short term fix.

All modifications are different.

I just did one that was processed As a normal refinance , paying off the existing loan and starting a new one. Got 1% fixed for 30 years


Honestly, Seterus is so awful that they probably wouldn't even offer me a loan like that. They only had a standard loan modification offer for us and basically in so many words, told us not to do it. I wish I had another lender. We originally had JP Morgan, but the mortgage got transferred over to them.


They suggested to walk away for me.

Hi All - Hope this helps.....close to closing with New American Funding. Home is in Arizona. Currently in interest only 1st Mortgage (Seterus servicer) as well as 2nd Fixed. 200% upside down on house. 740 credit score, no lates. FNMA loan. No PMI. Has been a smooth experience so far except that 2nd loan subordination taking awhile (and was expected to). Started first week of May and expecting to close Jul 23 or so. Best experience I've ever had with a refi (Harp 2.0). Seterus and Quicken both reached out to me several times. Researched Qucken and it appeared that they wouldn't go over LTV 125. I researched New American Funding extensively before going with them and was impressed. Fingers crossed for next week's closing but am feeling confident. Hope this helps ANYBODY! Good Luck!

We had Seterus and United Guaranty for PMI. Worst combo you can have! And, we applied with a ton of lenders, Quicken said no go due to being over 125%, AIM said no go due to running it through the Fannie Mae underwriter and getting an EA II finding. Another company got an EA II, but said they could do it if we brought 18k to the table to pay down the underwater amount somewhat. Finally, CMG mortgage got us and approve/eligible finding, and didn't require huge amounts of money. We did not get the best rate out there, 4.5% (from 7.25, so we still save 460 per month on the payment). They were the only ones who seemed to be able to do ANYTHING. One other lender DID offer us 4.875 rate, but we would have had to pay about 3k to buy down points to that level! So, I suggest you try CMG. Our LTV was 147%, and we had obstacle after obstacle, but closed about 2 weeks ago. Good riddance Seterus (we are praying they don't sell the loan back to them!)

Skipping 7 Messages...
Hi guys...

As noted below the whole point of Harp II is to refinance underwater mortgages. I just completed a refi with an LTV of over 125%.

Here's the scoop on Harp II:

1) Must be a Fannie Mae or Freddie Mac loan. There is a link on those sites where you can look it up via name and address in 10 seconds.
2) Must have excellent credit, be current on the mortgage payments, and not have a lot of revolving credit. Your eligibility is checked via an automated Harp II program that the mortgage brokers use. They can also tell you immediately your eligibility for Harp II via once you give your social, etc.
3) OK to have PMI. Ok to be underwater (or, as they call it, have over 125% LTV or loan-to-value ratio). Depends upon the lender. I used 1st2ndmortgage of New Jersey. There are many out there. The companies are also listed on the Fannie Mae or Freddie Mac websites.
4) No appraisals needed.
5) No up front fees - built into the closing.

I just refinanced on a Florida rental with over 125% LTV and PMI - went from 30 year 6.75% to 15 year 3.62%. A lot of noise on Harp II is people with bad credit who don't want to own up to it, they blame the program. The program works.
You owe it to yourself to check it out. Harp II closes in December of 2013. If you aren't eligible immediately, see what you can do to get there via your credit. The savings are enormous.

http://www.freddiemac.com/avoidforeclosure/participating_lender_...

Above is the link for Freddie Mac lenders for Harp II. If you are looking for a high LTV loan and you have excellent credit, you should be able to find a lender. Just start at the top and go down. That's what I did.



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