Refinance HARP 2 Help

[JorgeDLT]

Hi,

Looking for some help in understanding if I can refinace my current mortgage currently serviced by M&T Bank originated by Contrywide (BOFA).

Current Bal - 327,000
Est Value - 330,000
Total DTI well below 30%

PMI paid upfront with Radian should be transferable, correct?

I had an investment property forclose back in June 2009. Can I qualify for a refi??

Thanks.

[Erik Sandstrom]

Hi Jorge,
Welcome to the forum and thanks for sharing your scenario for others to help. Most lenders have foreclosure seasoning requirements, here's my guidelines on foreclosures:

Regardless of the AUS findings, the credit guidelines below for Foreclosure, Deed-in-Lieu of Foreclosure, Pre-Foreclosure Sales, Short Sales or Short Payoff/Restructured loans must be met as automated underwriting systems may not detect the presence of these items.

If a collection or charge off shows a balance and it is a mortgage loan that was involved in a previous foreclosure, a credit supplement or documentation from the lien holder must be provided to show no balance owing on the account.

If the disputed trade line is a mortgage that was past due by two or more payments in the last 12 months, or a foreclosure that has been filed within the last 5 years, the loan is ineligible.

Seven (7) years must have passed from the completion date of the foreclosure to the date of the credit report

The best thing that I could recommend is to speak with your current lender, they have more lenient guidelines for credit issues, foreclosures, short sales, bankruptcies and things like that. There process is more streamlined and much less documentation is required. The only problem with that is you're subject to their mercy and what they want to give you regarding closing costs, rates...etc. Your lender must participate in the "Same Servicer" program.

[JorgeDLT]

Thanks for the information I will try my current servicer but they are offering me 4.75, was hopping that someone else could do something to find a lower rate with a different broker.

[Erik Sandstrom]

Different brokers are going to have the same guidelines on Bankruptcies, the loan has to be underwritten and eligible to sell back to Fannie Mae (the investor). If they don't follow the guidelines and are caught there are buy back provisions which will require the lender to buy back the loans and i'm sure get fined.

You're really not getting a BAD option especially if you have a foreclosure. Just my opinion.