HARP 2.0 and a loan mod

[boricua65]

I'm not sure if this has been asked, but I was thinking of going for a HARP 2.0 refi. Backstory: I got a loan modification through NACA a couple of years ago and my servicer currently is Seterus. In the loan mod, I got a principal forebearance of $149K with me paying the $209K of that loan. I was told if I ever sold or refi the forebearance will be added to the loan. My house has been fluctuating but currently Zillow says my house is worth $108K. Would this be possible to refi through HARP 2.0? If not, I can wait awhile. BTW, my credit score is near 700.

[Evan Bedard]

A refinance under HARP may be possible even though you received a modification a couple years back as long as you have been current on your payments for the last 12 months. Also your mortgage must be owned by Fannie Mae or Freddie Mac to qualify for a refi under HARP as no other investors are currently participating in the program. You can use the link below to determine if either investor owns your mortgage:

Does Fannie or Freddie Own Your Loan?

[Erik Sandstrom]

Hi Boriqua,
I would like to add my 2 cents to your post and hopefully it answers your questions.

If you have received a short payoff or restructured loan/loan modification on the subject property you are not eligible for HARP refinancing. There is no seasoning period as to when you would be approved as well, this is one thing I noticed in the guidelines and sent an e-mail directly to our underwriting department to confirm. If the loan modification/short payoff/restructured loan is not the subject of the refinance there is a 4 year seasoning period and you must have 0x30 day lates over the past 12 months.

There MAY be a way to get through with the "Same Servicer" program working directly with your lender however Seterus is not originating HARP and is sending all their clients to Quicken (who I can never recommend). This would mean that you do not have the "Same Servicer" option.

I hate breaking bad news to people but this looks like it's not going to work. The only option you have would be to try again for a loan modification. If you have any further questions, please don't hesitate to ask. I'm very upfront and honest with what I do and take pride in helping our fellow loansafe members.

[lolodl]

Hi, Im not sure if Im posting in the right section but I have a question re HARP.

My house is in Florida, I currently live in NJ. About 10 months ago Bank Of America sold my loan to Green Tree. Loan Balance is $252,000, with a 6.5% rate (i bought in 2005), I have never been late with a payment. From what Ive read HARP seems to be an option for me, my loan is owned by Fannie Mae.

Do I have to go through Green Tree for a HARP request? How can I find other lenders and what can I do to have the best chance of success? The rate I have is sickening, I should also point out that while I dont know for sure what the house is worth Id guess now $150-180.

Thanks.

[Evan Bedard]

Do I have to go through Green Tree for a HARP request? How can I find other lenders and what can I do to have the best chance of success? The rate I have is sickening, I should also point out that while I dont know for sure what the house is worth Id guess now $150-180.

You do not have to stick with your current servicer to refinance under HARP, you can shop around to find who is offering the best rate and deals, and Erik may have some suggestions for you. Here is a list of participating lenders from Freddie Mac, but keep in mind that most lenders who are Freddie Mac approved will also refi Fannie Mae loans as well.

Home Affordable Refinance Lenders - Freddie Mac

Home Affordable Refinance Lenders - Freddie Mac

[boricua65]

@Evan, yes my loan is from FNMA.

@Erik, thanks for the info . I guess I'll just have to live with what I got and not let the forbearance hang over my head.

[Evan Bedard]

If you have received a short payoff or restructured loan/loan modification on the subject property you are not eligible for HARP refinancing. There is no seasoning period as to when you would be approved as well, this is one thing I noticed in the guidelines and sent an e-mail directly to our underwriting department to confirm. If the loan modification/short payoff/restructured loan is not the subject of the refinance there is a 4 year seasoning period and you must have 0x30 day lates over the past 12 months.

I'm sorry Erik I am a little confused, are you saying that if you received a loan modification within the last 4 years you will not be eligible for a refinance under HARP?

[azcowboy]

I still confused with Harp 2.0 Re-Fi. I am with GreenTree. They apparently use Quicken Loans(I hate that) to do their re-Fi's. They say we qualify and the closing cost will go on to the principal. I have two questions: They say there is NO Seasoning terms and NO pre-pay penalty I have a terminally ill step-father that requires treatment out of state. The question is of course I want to save a few dollars by Re-Fi'ing but if I have to move, sell or buy another house out of state what will be the penalties be if I take this Re-Fi will I have to pay for the closing if I can sell. I was told that there is a standard 4 seasoning but I need tht in writing. The Quicken and RE say there isnt.
Please clear this up
Thanks

Tom

[Erik Sandstrom]

I still confused with Harp 2.0 Re-Fi. I am with GreenTree. They apparently use Quicken Loans(I hate that) to do their re-Fi's. They say we qualify and the closing cost will go on to the principal. I have two questions: They say there is NO Seasoning terms and NO pre-pay penalty I have a terminally ill step-father that requires treatment out of state. The question is of course I want to save a few dollars by Re-Fi'ing but if I have to move, sell or buy another house out of state what will be the penalties be if I take this Re-Fi will I have to pay for the closing if I can sell. I was told that there is a standard 4 seasoning but I need tht in writing. The Quicken and RE say there isnt.
Please clear this up
Thanks

Tom

Hi Tom,
The HARP is similar to a conforming loan where it states you plan on residing in the residence for 12 months after the refinance. Emergencies do arise where you need to sell or buy a new home, with the HARP refinance there is no pre-payment penalty so you can pay that loan off in a year if you wanted too. The loan officer you're working with may have to "buy back" that loan and pay his commission back if you pay it off early but you won't be penalized.

Evan,
I've asked my underwriting department regarding previous loan modifications and they state "If there has been a loan modification on the subject property, the loan is ineligible for HARP" - I even asked them if there's a time period before they can apply again and they said no. Now you really never know day by day which guidelines will change and that could very well be one of them. However if a principal reduction was given the seasoning periods would be similar to a short sale because they had some principal written off.

I was really dissapointed when I heard about the guidelines regarding modification.