Home Loans and Support

Harp 2.0 Fannie Mae owned , Suntrust Mortgage, chapter 7 Bankruptcy discharged

Discussion in 'HARP Mortgage Loan Program' started by RockyP, Jul 10, 2012.

  1. RockyP

    RockyP LoanSafe Member

    Suntrust Mortgage
    purchased 11/2007 $417,000 30 yr fix at 6.375 %
    current balance 1st mortgage 392,000
    Zillow Zestimate value 534,800
    2nd Mortgage Sovereign 110,000 interest only 3.5 %
    single family
    Fannie Mae has my loan
    Chapter 7 Bankruptcy was Discharged 11/2011
    did not reaffirm 1st or 2nd mortgage
    current on both loans
    no lates in the last 12 months
    All I provided to a Suntrust Mortgage broker was my loan #

    Suntrust Response
    Ill check for harp elegibility
    What's your loan number?

    Suntrust Response :
    I checked for HARP-2 eligibility on your Fannie Mae loan.
    Your loan is not eligible for the manual version which is the version that would allow the bankruptcy. The manual version does not require the running of automated underwriting (DU).
    You would then default to the automated version, however the automated version requires 4 years after discharge on the bankruptcy.

    My Response:
    Thank you so much for looking into this for me so quickly. What is it about my loan that makes it " not eligible for the manual version which is the version that would allow the bankruptcy "
    Suntrust Response:
    I don’t know; sometimes it depends on how the loan was originated; if it was done as no doc or light doc, both of which Fannie Mae used to offer, then it’s often not eligible for manual.

    Can anyone tell me if this all makes sense ?

  2. Evan Bedard

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

    Welcome and thanks for joining the community.

    I would recommend contacting a member here by the name of Erik Sandstrom and run your situation by him. He has been helping people refinance their mortgage under HARP since the program was first established and he knows all the ins-n-outs of the program. You can find him in the thread below:

  3. RockyP

    RockyP LoanSafe Member

    Has there been any changes with Suntrust Mortgage overlays ?

  4. Evan Bedard

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

    Lenders have many HARP applications in process so it can easily take 1-2 months or more before they finish reviewing and make a decision on your account.
  5. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-619-379-8999 Staff Member

    Hey Rocky,
    They may very well be right, I'm not an expert with the "Same Servicer" HARP program which sometimes allows bankruptcy however what he's saying could be accurate. I have a contact over at Citi that does the same thing, he can check if the loan is HARP eligible by plugging in the loan number.
  6. RockyP

    RockyP LoanSafe Member

    Hi Even,
    I never submitted a application with Suntrust Mortgage for the streamline. Tim S. told me that Suntrust Mortgage could not do it.

  7. jamendan

    jamendan LoanSafe Member

    Hi RockyP - any progress with this yet? We are in almost exact same situation. We are post Ch 7, loans discharge but are still paying, and are thinking about trying HARP through Suntrust. I think the house has to be underwater to qualify for HARP. Our other choice is to stop paying and leave when house forecloses, but that freaks us out. Have you had any luck?
  8. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-619-379-8999 Staff Member

    Hi Jamendan,
    For HARP your home doesn't necessarily have to be underwater but if you're below 80 percent it may be more beneficial to go for a conventional route if you qualify due to better interest rates. The HARP "Same Servicer" program is the only conventional refinance option that I know of that can overcome bankruptcy.

    It seems like some people qualify and others don't. The wording the Loan Officers have been using that work under the "Same Servicer" program is "Your file has been denied for the streamline program and has been downgraded to manual underwriting. With it being manual underwriting, the bankruptcy will become an issue"

    That's what I've heard.

    I operate under the HARP open access program and there is a 4 year requirement for CH7, 2 year requirement for CH13.
  9. jamendan

    jamendan LoanSafe Member

    Hi Erik - So then we should try for the Same Servicer HARP program through Suntrust? They have both our 1st and 2nd on this home, so I hope that improves our odds, at least as far a subordination for the 2nd.
  10. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-619-379-8999 Staff Member

    Hi Jamendan,
    Yes, I would try the same servicer direction if you have received negative response from other lenders offering the HARP program. We are licensed in IL but have the restrictions on BK that I posted above. Every lender besides Suntrust will unfortunately have the same restriction.
  11. RockyP

    RockyP LoanSafe Member

    Hi Jamedan - I have not submitted an application to Suntrust Mortgage because I have been told by Suntrust that I do not qualify for harp 2.0 because of the way my loan was originated. I think they may consider it ALT- A loan, but I put down 20 % down on the first & suntrust gave us a 2nd mortgage which soon after we closed I refinanced the 2nd with Sovereign Bank & paid off Suntrust. I wonder if that is the reason it was considered ALT- A With the Bankruptcy which will be discharged two years ago in another 4 months. I am just so frustrated that I have a 6.375 % rate no late payments on my mortgage & my P&I could go down be almost 900.00 dollars a month with interest savings over the life of the loan 140,000 dollars.

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