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PockyClipsNow
2012 Apr 24, 7:40am
Do you know if a HARP underwater refi is actually a loan mod?
Lots of ways to cheat into a loan mod legally it seems. (quit job, get mod go back to work, wife on maternity leave with reduced income get mod, she goes back to work, etc on and on).
I know a lady making $10 an hour she got divorced, got the house with a bubble era mortgage (home value now 50% of mortgage) they reduced her payment to 1200 a month from 3000 a month due to cant afford mortgage since divorce. Its a 2% mortgage based on partial principal bal. (no principal reduction) but she lives in a 5 bedroom mcmansion in gated community instead of a crappy apartment.
Go for it people the free money is out there!
BayArea
2012 Apr 24, 8:18am
Do you know if a HARP underwater refi is actually a loan mod?
From my understanding it is 2 parts.
The first is the refi of LTV up to 125% (or even no LTV limit now perhaps since the latest modifications)
The second part is loan modifications.
And you are right. If I am in a stress situation, it may be worth my while to "lose my job for a period of time" to address the biggest expense of my life.
BayArea
2012 May 1, 5:56pm
You may be eligible for HARP if you meet all of the following criteria:
•The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
•The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
•The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
•The current loan-to-value (LTV) ratio must be greater than 80%.
•The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.
SOB, my loan closed 6 months after that May '09 date
The HARP program eligibility states:
"The mortgage MUST have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009"
For the folks who are under-water with loans closing just after May 31, 2009, is there any mileage in calling WF and saying:
Either refinance me at today's market rate or get started with the short sale application. The bank has a lot more to lose with the latter, so is there any hope of a refi?
I guess if they agreed, there is still the risk that you will walk down the road. But wouldn't it be to their advantage to take the first option?
#housing