Refinancing Help - I've been given the runaround

[santbry]

Facts:
Purchased home in Aug 2006 for 249K
2 loans - 1st 7.25% for $199K, 2nd 12% at 50K
1st loan is 30yr fixed, 2nd is 15 yr baloon
Countrywide

Was told by countrywide that I don't qualify for the Making Home Affordable (MHA) Program. Because they said the loan was a non-conformatory loan with expanding criteria and it's a sub-prime loan? That was one of the reasons they denied me. Is this true? Has anyone heard of this? I am current on my loan. the value has dropped from 249K to 221K. The loan to value rate of the 1st loan is less than or equal to current value - 221K. Can someone help me?

[Moe Bedard]

They may mean that your loan is not backed by FannieMae or FreddieMac making you ineligible for the refinance option.................
The refinancing option is only available for conforming loans owned or securitized by Fannie Mae and Freddie Mac.

Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Borrowers will provide or enter information to determine if either agency owns or securitized the loan. This information is not a guarantee of eligibility for the refinance program, as other qualifying criteria must also be met.

• For Fannie Mae,
1-800-7FANNIE (8am to 8pm EST).
Fannie Mae Loan Lookup tool

• Freddie Mac
1-800-FREDDIE (8am to 8pm EST)
Avoiding Foreclosure - Freddie Mac



The eligibility criteria for a Home Affordable Refinance

• The property must be owner occupied,

• The borrower must have sufficient income to support the new mortgage debt, and

• The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less.

[santbry]

Hi ***,
Thank you for your swift response. I've called them both (Countrywide and Fannie) and actually looked at my documentation and found that Fannie Mae is the investor. I am just unsure of why the denial due to it being "sub-prime". I have requested the denial in writing for my own purposes.
I really don't want to turn to NACA as an alternative but I'm looking for someone that can assist in combining both loans to get rid of the high rate on the 2nd mortgage. Anybody out there?

[Moe Bedard]

We wouldn't have access to information for that on the forum....as we help members to do the modifications on their own......with refinancing......the structure would be whatever the lender that you choose asks you for as far as documentation.........you may want to check into some of the larger banks.........such as Chase, GMAC, or CitiMortgage to see if you qualify for a refi.