Can I do a HARP refi with a DTI of 70% with someone other than my current servicer?

yadfgp

LoanSafe Member
Dec 17, 2009
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Long story short. I've had a real nightmare trying to get a HARP refi for the last 5 months or so on my primary residence.



Back in March, I contacted B of A, whom at the time serviced my loan. I started the HARP refi, but within a matter of days, the HARP refi fell through because they just sold off my mortgage rights to Green Tree.



So I wait a few months for them to switch me over. Finally after like 3 months I began contacting Green Tree for a HARP refi, and long story real short, it was a complete and toal waste of time. Humungous nightmare that I just don't want to talk about.



So since my DTI is around 70%, I had always thought that only your current servicer can do a HARP refi for me since my DTI is so high.



It ****s, as rates are going higher lately. My DTI should be down to around 45% in about 8 months, but by then, who knows how high rates will be?!?! Hopefully lower than they are now! HAH! :)



So does anyone know of a company out there that will do HARP refi's for DTI's of 70%?

My home loan is with Fannie Mae. I qualify for a HARP refi np's. Home is about 100% LTV. I have a 2nd which is about $35,000. Credit score of around 680.



Keep in mind my mortgage is with those idiots at Green Tree.



Thanks sincerely for any concrete help I can get. :)
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
yadfgp,
I definitely had to say it sounds like you at least can find some humor in the situation and I liked that but sorry to hear about what you've been dealing with. The Same Servicer program does usually require a verification of employment which will tell them how much you are making. However I have seen people still be able to finance their HARP loans with the current servicer but I'm assuming that they sent you to Quicken?

When it comes down to Open Access for HARP we are limited to the guidelines that Fannie Mae and Freddie Mac have outlined in their seller guide. For HARP the program is limited to a maximum back end debt ratio of 55 percent, anything exceeding that will not pass the automated underwriting system. This is required in order for the loan to be sold back to Fannie/Freddie.

When you say your debt to income is going to change to around 45 percent in about 8 months, will that be an hourly wage increase, commission...what type of income would it be exactly because we would average your income over the past 2 years taxes and your year to date income depending on the type and what the automated system tells us we have to use.

I can't predict what interest rates will be in the near future (I wish I had a crystal ball) but they have been steadily increasing. What we have been seeing is the application count across the board with all banks has decreased by about 50 percent. Because of the recent hike in rates it has made some borrowers ineligible for the purchase price they wanted to pursue a few months ago. If the purchases slow down we may see a dip in values and rates but it's very doubtful. We never know what rates will do and I always say that if you wait for something better it could get worse and you can always refinance in the future if rates to go lower.
 

yadfgp

LoanSafe Member
Dec 17, 2009
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Thanks Erik.

That's interesting to hear about DTI of 55%.

As far as my employment goes, I've been with the federal government in the same job for about 18 years. I'm only 40 years old, so I've spent about half of my short life with the same employer. So I do have a good reliable job history.

My DTI is so high just due to outstanding debt. A car loan which will be paid off in about 8 months. I had to live off of a lot of credit card debt about 6 years ago, but I called the credit card companies up and arranged a 5 year payment plan for all that debt, so that will be paid off in about 8 months as well. My employment itself might only change in that I may make maybe $1000-2000 more a year just due to typical raises.

It seems ridiculous that even though I can afford and have been able to afford my mortgage payment these 6 years I've owned my home, even though that has been tough to do, I still am unable to do a HARP refi because of the DTI limits. It would be great if I could have a mortgage lender just see my outstanding debt, and just be able to say "Well all that's going to be paid off in 8 months anyways, plus you've been able to afford this mortgage for the last 6 years, there's no reason why we shouldn't be able to refi you into a lower rate!" But unfortunately and ridiculously enough, I guess it's just a standard underwriting part of the program that can automatically disqualify someone such as myself.

That is unless I was able to just go through my current servicer Green Tree, but I have better odds of winning the lottery, than being able to do a HARP refi with them. So I'm stuck for now.

Green Tree actually never referred me to quicken, I just thought I'd try doing a HARP refi with them, as I had read elsewhere that Quicken can and will do same servicer type HARP refi's for Green Tree customers. But that seems to be a thing of the past though, because as of February 1st 2014, those idiots at Green Tree have entered the mortgage origination business?!?

Green Tree | Home Loans, Refinance, Mortgage Rates

Which seems crazy because they're so damn incompetent. Why add other sources of business and revenue if you can't even handle the ones you're currently in?
 

yadfgp

LoanSafe Member
Dec 17, 2009
38
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What was the outcome of this? Are you still doing the HARP loan? Or are you waiting?
Hi DanielaR :)

I kept trying to get a HARP refi with Green Tree but kept getting the run around from everyone there. It was a nightmare and I've completely stopped having anything to do with those idiots as of almost a month ago.

I just don't think about any of that anymore. And I feel alot happier that way. :D

I'm just gonna focus on paying off debt and I think in about 5 months, almost all of my CC's will be paid off except for 1, which has like a $120 monthly payment on it, and also my car will be paid off!

My only worry right now of course is the amount rates have raised in the last 90 days or so.

I'm hoping like hell they don't go up much if at all. If 15 year rates stay at less than 4% than I'll be incredibly happy with that. Going from a 30 year to a 15 year at that rate should only cause my payment to go up by about a $100 month or so which is fine.

It ****s throwing away money on a mortgage that I'm hopefully getting rid of in 5 months though. That annoys the hell out of me but I try not to think about it.

I just stay positive by continuing to pay off debt, and also knowing that this will finally all be over in 5 months or so. Almost all my debt will finally be gone, and I'll be able to knock off about 7 years off my loan at that time.

So that's where I'm at right now and for the time being I guess.

Are you in a similar situation as I am?

I'm curious as to why you inquired about my scenario. If you don't mind me asking and wouldn't mind sharing.

Maybe we can help each other out.

Thanks
 

DanielaR

LoanSafe Member
Jul 19, 2013
9
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Upstate NY
I am trying to get a HARP refinance where GreenTree holds my second mortgage and am hoping for a subordination... quickly before my rate lock expires. It's been a nightmare dealing with them - they rejected the first one because it has been 2 months so the values of the loan changed... and now I am waiting for them to okay the updated values before my rate lock expires. Unfortunately I am in a tighter financial situation then you are - I had a divorce so need to cut expenses down - the extra 100 month at the higher rate will be more painful. :-(

this is my thread

http://www.loansafe.org/forum/harp-mortgage-loan-program/85961-harp-refinance-greentree-second-mortgage-subordination.html
 

yadfgp

LoanSafe Member
Dec 17, 2009
38
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Interesting...

That ****s. I'm sorry to hear what you've been going through. :(

I do know that it can take Green Tree a long time to complete subordination requests. At least a month or so on average is what i understand. In your thread I did post that I came across a person who actually used to work in the GT subordinations department, and that during her time there, they actually did pretty much OK every subordination request they got. So it seems at least maybe that department of green tree isn't totally worthless.

Maybe at the time you had your subordination request, they were just really backed up and maybe there is some truth to what you describe. I have no idea as I'm just a home owner looking for help like you. :(

But it does make sense to me though I guess.

During the past 6 months of dealing with all this, I did find a link that I think had the actual guidelines that GT uses for their subordination requests, I think. I could look for it to see if I can find it and maybe that could help you in some way.

I found the link : https://www.gtservicing.com/documents/Subordination Requirements FINAL 7-26-12.pdf

I don't think I'd give up though on GT and them being able to subordinate your 2nd. It can take time though.