*****Updated Guidelines for Refinancing a Loan Previously Modified:*****
If you are refinancing a loan that has been modified the guidelines below are what is now required.
OLD GUIDELINES
OK Team,
I just received a call back from my underwriting department regarding previous loan modifications on loans and the borrowers attempting to refinance under HARP, Conventional or FHA.
The big thing to watch out for is if you received a principal reduction, deferment or curtailment those loans are ineligible for submission. Why they are ineligible is because the payoff from the lender will be different from the unpaid balance.
GREAT NEWS!! If you ONLY received an interest rate reduction, term extension or past due payments pushed to the end of the term we may be able to help.
I know many of our borrowers have been turned away. I myself have even turned away homeowners with previous loan modifications. If you want to determine if your loan IS eligible for refinancing, my underwriting department has given me the ability to submit the modification agreement and they will come back and determine if the loan is eligible.
If you are refinancing a loan that has been modified the guidelines below are what is now required.
- Copy of the Modification Agreement to verify acceptable terms
- Borrower had to make at least 24 timely mortgage payments based on the terms of the restructured loan
OLD GUIDELINES
OK Team,
I just received a call back from my underwriting department regarding previous loan modifications on loans and the borrowers attempting to refinance under HARP, Conventional or FHA.
The big thing to watch out for is if you received a principal reduction, deferment or curtailment those loans are ineligible for submission. Why they are ineligible is because the payoff from the lender will be different from the unpaid balance.
GREAT NEWS!! If you ONLY received an interest rate reduction, term extension or past due payments pushed to the end of the term we may be able to help.
I know many of our borrowers have been turned away. I myself have even turned away homeowners with previous loan modifications. If you want to determine if your loan IS eligible for refinancing, my underwriting department has given me the ability to submit the modification agreement and they will come back and determine if the loan is eligible.
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