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Answers (9)
- KKSka14
- Contributions:63
Well, we do HARP 2.0 loans in Virginia (taken onto our portfolio--although, I think a lot of lenders do). If you just need a lower payment then go with HARP as it won't ding your credit (although it won't reduce your principal balance). There are some unsolicited loan mods for when an investor is trying to reduce their portfolio's risk, but a requested loan mod will hammer the credit. A loan mod may take "forever" if there is no pressing need for it given how hammered the servicers are with requests from people who have lost their jobs or who can't afford their payments.
Edit: If I'm not mistaken--and I may be--there is even a big ding to your credit score for even requesting a loan mod.
Edit: If I'm not mistaken--and I may be--there is even a big ding to your credit score for even requesting a loan mod.
- carter_s
- Contributions:3
Yeah Short Sale is not an option, we live in the home. My home is underwater, but either a Mod or a HARP refinance will help. I am just trying to figure out which would be the best. I haven't been late, on my payments. My interest rate is very high. which contributes to a high payment. If my payments were to be reduced things would be fine. Or shall I say manageable.
- sunnyview
- Contributions:25127
"Short Sale! Get the elephant out of your life!"
I think that advice is terrible. This owner has not even said if they are underwater, what state they live in or whether a loan mod/HARP will help their long term situation without damaging their credit.
You enthusiastically recommending short sale out of the gate is just not right.
I think that advice is terrible. This owner has not even said if they are underwater, what state they live in or whether a loan mod/HARP will help their long term situation without damaging their credit.
You enthusiastically recommending short sale out of the gate is just not right.
- KKSka14
- Contributions:63
Depends a lot on your situation. If you plan on staying at the house long-term then a loan mod may be a good situation if they reduce principal. If you are perhaps considering a move in the next few years then please keep in mind that a loan mod can hammer your credit score. It may be a small price to pay but just remember that there are consequences for loan mods.
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
Short Sale! Get the elephant out of your life!
- sunnyview
- Contributions:25127
I think it probably depends on what the terms of the loan mod are. Many of them add principal to the back end or lengthen the term to drop the payment. Rates for 30 year mortgages are very low right now so I would see what your payment with HARP would be.
Talk to a local WF lender in a branch. I would try to shoot for whatever will give you a term of not more than 30 years and a payment that leaves the possibility of keeping it as a rental open for the long term. That way even if you have to relocate for work or your circumstances change you can hang on to it no matter what the market is like and choose when you sell.
Talk to a local WF lender in a branch. I would try to shoot for whatever will give you a term of not more than 30 years and a payment that leaves the possibility of keeping it as a rental open for the long term. That way even if you have to relocate for work or your circumstances change you can hang on to it no matter what the market is like and choose when you sell.
- carter_s
- Contributions:3
Thanks for the responses.
- Candace Camacho, "CandaceCamacho"
- Contributions:420
Here is some information about HARP eligibility. Take a look. I hope this helps and good luck.
Thanks,
Candace
Zillow Customer Support
Thanks,
Candace
Zillow Customer Support
- Kelly Wilson, "RealEstate Coach"
- Contributions:12
The answer depends on a lot of things... the very best suggestion I can give you is to consult your mortgage broker and have the "expert" run the numbers to give you the pros and cons.
Good luck!
Good luck!
At this point would a Loan Modification be better than a HARP 2.0 refinance?
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