Hello Loansafe forumites,
I need some advice on our options, including if a HARP re-fi is even possible for us. We make a very good living and are not struggling financially. We're fortunate. However, our home is very, very underwater. We're in Georgia. We purchased in 2006 (ouch) at $468K with about 8% down. Now our value is somewhere around $305K.
We have a first with Bank of America, 6.625%, $339K balance. We have a second with GMAC, 7.8%, $53K balance. So we owe about $390K. Total LTV around 128%, maybe a bit less if an appraisal came in higher.
Total monthly payment around $3300 for both. Our loans are owned by Freddie Mac, they were sold to them back in 2006, so we meet that guideline.
I called B of A and we weren't eligible according to them after I gave all of our financial info. Here is my first question: do you have to demonstrate a financial need in order to get HARP?
I then called Quicken, and they want to speak to me after March 19th, which is when HARP 2.0 rolls out.
We want to do this for a few reasons: 1. We have young children and I'd like to scale back my work to part-time. 2. We are simply not getting anywhere paying down our mortgage at this interest rate. With property values continuing to fall in GA and our rate being so high, it feels like we're pouring $$ into a bottomless pit.
Right now, our excess cash per month is around $2000-$2500 after all bills are paid, including spending. We have that much to save each month. This goes to fund retirement (primarily), to our emergency fund, vacations, etc.
Are people who don't have extreme financial hardship eligible for HARP?