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Profile picture for StuckInFLForEver

Unable to refinance using HARP.

My home is underwater and currently i am having 7/1 ARM took it in 2007. My lender  is Digital Federal Credit Union. I asked them about HARP and they are saying they are not participating. I am current on my mortgage payments. My interest rate is 6%. Already paid 20% on my principle. Not sure at this stage what to do. Just walk away or wait for some more time. Current loan amt is 250K and Home Value is <200K.
  • June 27 2011 - US
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Answers (6)

Best Answer

Profile picture for shapiroamg

Do you need a roof over your head? If so then staying might be the best choice. If your rate were to adjust today, it would probably go down.
If you are thinking about walking away, then you should really consult an experianced real estate attorney for advice regarding that and a possible short sale. there are steps you should take to learn and to protect yourself.

Good Luck.

  • June 27 2011
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If you provide your property address via email I can look up whether or not your loan qualifies for HARP or HAMP.
  • June 28 2011
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JM is right, just because DCU isn't participating doesn't mean you can't get a Harp loan from another lender (for the record, we only do our own, but some lenders can do any loans that are eligible).   If they still own the paper, and not just the servicing, then it is definitely NOT eligible.

A short sale, as Shapiro suggested, would be a much better long term decision than to walk away.

You might also talk to them about to DCU about loan modification (to them its basically the same as a short sale, but you keep your house).   If you qualify, they might be willing to lower your payments significantly and permanently. 
  • June 27 2011
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Profile picture for shapiroamg
Short sale would allow you to sell the property and the CU would take a loss on the difference between the sales price (with negotiated fees included) and the current loan balance.

As long as you are current on the mortgage, you could short sale and be elegible for a future purchase loan.

My point about a roof over your head is more to where you are in your life. If your employment is close by, if you have children in schools and other considerations then sticking in the home may be worth it in the long run. If you have nothing tying yourself to the home and area, then a short sale might be the best way to get yourself out.
  • June 27 2011
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Profile picture for StuckInFLForEver
My loan is still with the DCU. They are not going to sell this loan to Fannie or Freddie. They are not offering the HARP for me. Yes i do need a home to stay and that's the only reason i am paying. But what ever i am paying it is not going to any equity as i have negative equity. Is short sell a good option. Please advice.
  • June 27 2011
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In order for the HARP program, your current loan has to be either a Fannie Mae or Freddie Mac loan.  Do you know if it is either? 
  • June 27 2011
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