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HAMP/HARP 2.0 Mortgage Reduction

Discussion in 'HARP Mortgage Loan Program' started by confused2010, Jan 29, 2013.

  1. confused2010

    confused2010 LoanSafe Member

    I received an interest rate reduction a couple of years ago through Citi Mortgage through the HAMP/HARP program. They miss calculated husbands income. I tried to get it fixed even went through my state representative. They still would not fix the problem. Told me to reapply and then promptly came back months later and told me we were denied b/c we already went through the HAMP/HARP program and accepted the terms.

    My home is still underwater. Loan to value ratio is 111.42%. Can I try again for a principal reduction? How can I go about this? Do I work with Citi or try using a 3rd party to represent me?

    Thanks for your thoughts!
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Hello Confused 2010,

    Do you know if you went through the Home Affordable Refinance Program (HARP) or the Home Affordable Modification Program (HAMP)? Keep in mind that they are two completely separate programs as one is an actual refinance and the other is a loan modification. However, with either program if you sign and accept the permanent agreement you cannot re-negotiate the terms without reapplying altogether. Do you happen to know if Fannie Mae or Freddie Mac owns your mortgage?
  3. confused2010

    confused2010 LoanSafe Member

    Hi Evan,

    The program which we accepted is HAMP. The mortgage is owned by Fannie Mae. The payment plan is gradual interest rate increases topping out at 4.625 for years 8-30. Our loan to value ratio is 111.42. However our Debt to income ratio is 32.2.

    Can we try for a principal reduction program?

  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Honestly principle reductions are extremely rare no matter what lender you are with or who services your account. And unfortunately Fannie Mae, Freddie Mac and other government-backed loans specifically do not participate in any principle reduction program and have refused to do so. Below are the only two programs that offer this type of assistance and one of the main qualifications is that your mortgage cannot be owned by Fannie or Freddie... Ridiculous right??...

    Principal Reduction Alternative (PRA)

    You may be eligible for PRA if:

    Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.

    National Mortgage Settlement

    Eligibility Overview

    Eligibility guidelines for National Mortgage Settlement assistance programs require that your mortgage is owned and serviced by Citi. Loans that are owned by others, such as Freddie Mac or Fannie Mae, are not eligible under the Settlement guidelines, but may qualify for other Citi solutions.
  5. sellinghouse

    sellinghouse LoanSafe Member

    Just a quick aside, is right now a good time to refinance, based on bank rates and not on my necessity?
  6. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    If you are eligible for a refinance and will save money due to today's low market rates, then I would say yes right now is definitely a good time to refinance!

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