Incarnate said:QuasiMatter said:Instead of talking to some idiot phone rep at some bank, I would strongly advice you to find a "nice, smart and trustworthy" (all three traits important) mortgage broker)
If your loan is owned by Freddie Mac, you can only refinance through your current servicer if you want to use this program because your LTV is too high because your house price has dropped. A mortgage broker isn't going to help you there, unless they put you in a different loan with PMI, or FHA, where you still pay mortgage insurance.

If your loan is owned by Fannie Mae, a mortgage broker may be able to help, but they can be just as ignorant about this program if not more-so and try to put you in a different product.

Please note that Freddie is a much smaller player than Fannie. So there is much greater chance that your loan is owned by Fannie. You can easily check whether your loan is owned by Freddie of Fannie by entering the address at the Fannie/Freddie links here.

newlin99 said:Phase 2 is people who are current on their payments. Phase 3 is if you want to refi using a different service provider. I would talk to someone local because my local countrywide rep said closing costs have been capped around 2k to avoid banks taking advantage of people in this program.
What are you talking about? You can take advantage currently if you are current on your payments, as long as you don't have PMI. Phase 2 is for people with PMI, and I have not heard anything about a Phase 3.

Closing costs have not been capped, and in fact are pretty high with this program (Fannie Mae starts charging points themselves if the mortage is over 90% LTV and you have a 2nd mortage , plus other Fannie Mae charges).

Fannie Mae owns my BofA (Countrywide) mortgage. When we bought out condo just two years ago, we were at ~73% LTV. With the drop in property price, the LTV is now at ~76.5%.

When I called about MHA, I was told that I was a good candidate - but when the salesman "ran the numbers", he said that we had a penalty of 0.75 points for the condo, and 0.50 points for the credit score. So for a no-points re-fi, I would have ended up at a higher interest rate. Or, if I paid 1.25 points, I would be at essentially the same rate as I already have right now, but with the mortgage clock reset to 30 years again, and the fees tacked onto my total loan!

After doing a little more research on my own and calling other lenders, I found out that if I just got a conventional refi and brought cash to the closing table, I could keep the loan under 75% LTV, which would also make the penalty points go away.

So, to recap, I could either:

1) Re-fi my just-above-75% LTV mortgage under MHA and pay about $2,000 extra in points to rewrite my mortgage at the same rate as I already have, rolling in the closing costs into the loan...

2) Pay down my mortgage by about $2,500 to get the loan at 75% LTV, and bring additional cash to pay for closing costs (around $2000), but pay no points, and get a better rate.

When I figured this out, I sent an e-mail to the BofA salesguy to re-run the numbers based on scenario 2. He has not responded to my request. Blech.

This is an awesome thread! Will be great to hear fellow FWers actual experience with this. It might be a good idea to add some useful references to the quick summary, as this stuff is very complex with many options, the more I read, the less I feel I know.

I have consulted with a few modifcation agents who told me that I should be elgibile for a modifcation because my DTI ration is more that 31%. They promise to work with the banks (in my case Chase/Fannie Mae and PenFed) to get my payments in line with a 31% DTI ratio. These agents have promised 100% money back if they modification does not go through. The charge for this service is around $2500.

Has anyone had good/bad experience with a modification agent? I know that it is possible to do it myself, but I gotta believe that there is some value in handing the nagging off to a full time professional who has expeience with thousands of files and a relationship with the banks.

smilesdotcom said:..........., but I gotta believe that there is some value in handing the nagging off to a full time professional who has expeience with thousands of files and a relationship with the banks.

First, I personally don't think there have been 100's of refinances under this program let alone thousands.

Second, think about the logistics. How many of these loans do you think one person can handle. Since the details were only out for a few weeks, how many loans do you think this person has even gotten to glimpse, let alone work with.

If they told you they are experienced, they are lying and that is reason enough to avoid them. (and the $2,500 fee is your other gaping clue).

OK, you guys are right, it does smell like a scam.

The problem is that information is hard to come by. Any pointers about where I can go for reliable information? So far the best source I have found are the forums on loansafe.org

I spoke to Countrywide (BofA) a few weeks back, and they said I would qualify to refinance my 1st loan. At the going rates of that day, that would taken off $270 from my monthly payment. Not bad. However, according to the MakingHomeAffordable.gov, I should qualify for modification. I confirmed this with a HUD counselor. That would take off about $700 a month. I really want the modification! I've called Countrywide for the last two weeks, and I do get through to the loss mitigation department. First I was told "we're still setting the program up, try back again in a few weeks". Last week they told me individuals who qualify will receive letters in the mail. Waiting for a letter doesn't seem like the best plan. What I really want to know is this - Has anyone received a Making Home Affordable MODIFICATION from Countrywide/BofA?

I am wondering why this thread gets so little attention. This could be the deal of the century for millions of people who's LTV prevents them from refinancing at today's low rates. I would be thrilled if this thread evolved into a resource to help navigate through the shark filled waters of the modification process.

Good question about the nest egg. I am sure that many people are in your situation. I think it would be insane to falsify your application. The bank will be pulling your tax returns, and those accounts will show up if they earned any interest. At best, the bank will ignore this as a fraudulent application, at worst you could be in trouble for making false claims.

I suggest that we collect these type of questions and answers into a FAQ in the quick summary of this thread. Any knowledgeable takers?

toybuilder said:When we bought out condo just two years ago, we were at ~73% LTV. With the drop in property price, the LTV is now at ~76.5%.
The rest of your post is pointless. You are under 80% LTV and can do a traditional refinance. Moving along ...

Today we are closing on a Refinance under this program!!! I'm still waiting for a phone call or some flag to go off sayin we can't do this, but I have the HUD and everything is set.

We got our loan in 2006 through BB&T. 6.25% 30yr fixed w/ 20% down.

1) December: talked to original lender. She told me I could refi but I would get hit with PMI. She said PMI is harder to get now and more expensive. Said call original appraiser for a ballpark. He verbally put us at 87-95% LTV. So traditional refi was out. BB&T not doing any 2nds or LTV over 90% in our area.
2) March, heard the refi plan had come out. Talked to lender, she said it would allow us to refi with no PMI, but had no more information. No savings on closing costs. They were waiting for the details. Left my info for a list she had going. Said we were a FREDDIE.

I was a little put back by this. If everyone is strapped for cash, most people can't afford a refi. The ONLY benefit is for people with REALLY HIGH rates or NO PMI. You still have to stay under 105%LTV --- so at this point I was a little skeptical.

3) April, hadn't heard anything, emailed just to see, she told me the had all the info and to call.
4) Came in to talk about it ASAP. She said:

• must be a Fannie/Freddie loan
  
• must be done through loan servicer
  
• no missed payments for 12 months
  
• up to 105% LTV
  
• Roll in up to $2500 closing costs
  
• No PMI before = no PMI after ... PMI before = PMI after
  
• Stated income (WHAT?!)
  
• Run credit, but has no affect on loan (WHAT!?)
  

• Bringing about $600 to closing
  
• Total refi cost (closing + roll-in + appraisal) = $5650
  
• save about $600 cash between out of pocket and skipping next month's payment
  
• It will save us about $200/mo. If we keep paying the same amount (we currently pay a little extra), it will shave almost 10 years off.
  
• Break even is about 24-26 months
  

It has really been pretty smooth and painless. We are very friggin' excited. Also feel very fortunate that the stars lined up: competent lender, freddie, appraisal, etc.

tarbelly said:So you save $200/mo with no principal adjustment, meanwhile the bank goes to uncle sam "see what i did, isnt it great can i have my incentive now for being a compliant lender". Im glad you got a refi, it saves you sizable money over the life of your mortgage, but I just dont agree with the kickbacks that the fed gives back to the banks, the savings you get is a pittance compared to what the bank will be getting.

Thanks , I'm glad too!

The lender told me the aren't getting anything for doing the refi. Sure, there's about $600 in fees built in, that won't make them rich and I'll make that back in 3 months. She said that they are assuming all of the risk by forcing 81-105% LTV loans through with no PMI, they are on the hook for it if I default. There are no kickbacks tied to the individual loan. She said if they didn't do it, they would be "the bad guys".

I realize they are getting gov't assistance and maybe a condition for the money is to do loans like this ... no free lunch. We're all paying for it anyways, right. If we keep the loan to payoff, the bank would have lost about 200k in fees from the interest difference.

I'm mixed on the whole thing ... we're looking out for numero uno. I still disagree with the loan MODS and people walking.