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- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
HarpLoans -
Are you familiar with HARP 2.0?
The extension is through end of 2013 and you do NOT need LTV over 80% to be eligible (though under 80% will have a 105% max CLTV).
Are you familiar with HARP 2.0?
The extension is through end of 2013 and you do NOT need LTV over 80% to be eligible (though under 80% will have a 105% max CLTV).
- HarpLoans
- Contributions:2
Are you familiar with HARP 2.0?
Check with your local mortgage broker who is most likely up to date with the newest HARP Loan guidelines. See below some of the new features of the Home Affordable Refinance Program.
Check with your local mortgage broker who is most likely up to date with the newest HARP Loan guidelines. See below some of the new features of the Home Affordable Refinance Program.
Some of the key features of the program include:
- HARP is now extended through the end of 2014.
- In order to be eligible, loans must have been purchased by Fannie Mae or Freddie Mac after May 31, 2009.
- Your loan-to-value ratio must be higher than 80 percent. That means you have to owe more than 80 percent of what the home is worth. To calculate that, divide the amount you owe by the value of the property.
- To qualify, borrowers must be current on their mortgage for the last six months, and have no more than one late payment over the past year.
- New appraisals may not be needed to qualify.
- FirF
- Contributions:7
Been there, done that. The banks are following the rules, the rules are broken.
- Susan Blanford, "Susan Blanford"
- Contributions:55
Contact a certified HUD (Housing and Urban Development) counselor in your area. They are listed on the HUD.gov site. They will/should be able to advise you on the answers to your question.
Then write your congressmen/women and tell them to make the banks follow the rules which have been set forth by the government.
Good luck.
Then write your congressmen/women and tell them to make the banks follow the rules which have been set forth by the government.
Good luck.
- Hallofame
- Contributions:1
Please contact your congressmen and demand they stop these banks from continuing the charade of posing as HARP lenders when they are using your hardship to profit. My daughter was told by WELLS FARGO she shouldn't bother with HARP because it's no good? They could help her traditionally refi. Then they smacked her with 3points and 15k in closing costs. They need to have their pants cut out by the "office of controller of currency" She has never been late in a payment but can't get her lender (the scumbags at HSBC to refi? They want to hold her credit score against her! Go figure they already possess the loan? I personally know they will help you when you stop making the payments and file for bankrupcy. Then the foot is in the right shoe. We are in a mess because we have to bail these Banks out and eat their crap too. Where is Barney Frank and Obama in all this. Their still making meaningless speeches. again contact your congressman ASAP.
- FirF
- Contributions:7
Sean, you are not interested in helping other people find similar information about HARP loans? Unsubscribe if you are no longer interested, but don't abandon your fellow citizens. Blame Google :)
As far as the discussion goes, a vast amount of us are not irresponsible borrowers. The secondary market freed up money that was improperly invested in risky borrowers. If the only way to correct that is to kill the secondary market, then so be it. For some reason people think its ok to leave honest and responsible Americans holding a bag of crap because capitalist greed crashed the market. They think they can play the odds because we are too lazy or not brave enough to fight this injustice.
I for one will not sacrifice my liberty. It is not my job to compensate for the loss brought on by corporate greed. The current loan modifications that are being denied are not even remotely fair, and any sort of roadblocks put in place, will only increase the size of the tidal wave when the wall comes crashing down.
As far as the discussion goes, a vast amount of us are not irresponsible borrowers. The secondary market freed up money that was improperly invested in risky borrowers. If the only way to correct that is to kill the secondary market, then so be it. For some reason people think its ok to leave honest and responsible Americans holding a bag of crap because capitalist greed crashed the market. They think they can play the odds because we are too lazy or not brave enough to fight this injustice.
I for one will not sacrifice my liberty. It is not my job to compensate for the loss brought on by corporate greed. The current loan modifications that are being denied are not even remotely fair, and any sort of roadblocks put in place, will only increase the size of the tidal wave when the wall comes crashing down.
- seanframe
- Contributions:3
Can you all please find another place to discuss these matters? I believe my question was answered long ago and this has now become a HARP forum, which was not my intent.
Thanks!
Sean
Thanks!
Sean
- Andrew Adams, "203K Specialist"
- Contributions:9349
I absolutely did not mean to be offensive...and I apologize if you took offense to my post.
- Keane Ng, "Keane Ng"
- Contributions:297
Michelle,
Andrew is a good guy. I don't think he meant for his post to be offensive.
Understandably though, the topic regarding HARP refinancing is getting hot and homeowners are getting more upset the more they learn.
Keep the questions coming and hopefully there will be some good done from it.
Andrew is a good guy. I don't think he meant for his post to be offensive.
Understandably though, the topic regarding HARP refinancing is getting hot and homeowners are getting more upset the more they learn.
Keep the questions coming and hopefully there will be some good done from it.
- Andrew Adams, "203K Specialist"
- Contributions:9349
I did come accross this article from Barrons but it was not suggesting that everybody refi. It was suggesting that the Tarp monies be applied to the balances on subprime loans. Reducing the outstanding debt so that the current balances would be in line with the current values making it possible for those homes to be either sold or refinanced. I have a feeling the political fall out from actually implementing such a plan would have been fun to watch. The plan itself may have yielded better results...however I can't imagine any politician supporting it and having to explain why they supported a plan that bailed out irresponsible borrowers.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Michelle,
You are taking my post the wrong way. Although it would help many folks if lenders could simply rewrite loans based on a payment history. It would errode the secondary mortgage market. It sounds like and easy fix for a lot of folks but the reality is that the consequences of such a solution would be devastating to the real estate and mortgage markets. At the end of the day a solution like that would cause more damage to more folks.
I would love to read the article in either that suggested allowing everyone to refinance would solve all our problems. I tried googling it but nothing came up with those words.
You are taking my post the wrong way. Although it would help many folks if lenders could simply rewrite loans based on a payment history. It would errode the secondary mortgage market. It sounds like and easy fix for a lot of folks but the reality is that the consequences of such a solution would be devastating to the real estate and mortgage markets. At the end of the day a solution like that would cause more damage to more folks.
I would love to read the article in either that suggested allowing everyone to refinance would solve all our problems. I tried googling it but nothing came up with those words.
- Michelle1
- Contributions:19
Hey Andrew Adams, "loan professional"- it was not what I wanted, a general REFI is what WALL STREET JOURNAL was putting forth, it was on the Barrons cover page, presumably these people at wall street journal and barrons have at least as much financial savvy as you. You might want to read up, or take a finance class.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Michelle,
You are confusing what should happen with what you would like to happen. If they did what you wanted to happen rates on mortgages would have gone through the roof and I would doubt any investors would be interested in mortgage backed securites that are tied to mortgages that had no qualifying guidelines.
You have to look at more than what would be good for you and need to look at what might the consequences be. Although it sounds great a program like that would have likely destroyed the mortgage market and financing a home would go back to the way it was pre securitization..Limited money to lend and only the super qualified would even have the opportunity.
You are confusing what should happen with what you would like to happen. If they did what you wanted to happen rates on mortgages would have gone through the roof and I would doubt any investors would be interested in mortgage backed securites that are tied to mortgages that had no qualifying guidelines.
You have to look at more than what would be good for you and need to look at what might the consequences be. Although it sounds great a program like that would have likely destroyed the mortgage market and financing a home would go back to the way it was pre securitization..Limited money to lend and only the super qualified would even have the opportunity.
- Michelle1
- Contributions:19
I agree with the borrowers here regarding HARP. I am in the process of refi-ing with HARP at wells fargo, and its a hyper-complex pain.
What HARP SHOULD have been, was a refi for anybody who was current, no matter your debt ratios, or your income or your credit score or anything. If you had a mortgage, any mortgage, you should have been able to refi to the new 4% rates which were created by the fed to stabilize the housing market. If anybody who was current could refi to 4-5%, there would have been no need for HAMP (modification program), because most people would get a significant savings from a refi into 4.5% fixed. This *let everybody refi* was put forth by Barrons and the WSJ last year as the solution to the housing market.
Instead, they came up with the hyper complex HAMP and HARP, for HARP which is the refi arm, they look at a 105% LTV max which excludes tons of people, then the 55% DTI which is BS, most of these people were qualified for their initial loan with >55% DTI, and now in the recession some income has been lost, they do employment verification which is a real problem for the self employeds, yada yada yada and at the end of the day you have .01% of the people who SHOULD have been able to take advantage of these rates actually being able to do it and a continuing downward spiral in home prices.
What HARP SHOULD have been, was a refi for anybody who was current, no matter your debt ratios, or your income or your credit score or anything. If you had a mortgage, any mortgage, you should have been able to refi to the new 4% rates which were created by the fed to stabilize the housing market. If anybody who was current could refi to 4-5%, there would have been no need for HAMP (modification program), because most people would get a significant savings from a refi into 4.5% fixed. This *let everybody refi* was put forth by Barrons and the WSJ last year as the solution to the housing market.
Instead, they came up with the hyper complex HAMP and HARP, for HARP which is the refi arm, they look at a 105% LTV max which excludes tons of people, then the 55% DTI which is BS, most of these people were qualified for their initial loan with >55% DTI, and now in the recession some income has been lost, they do employment verification which is a real problem for the self employeds, yada yada yada and at the end of the day you have .01% of the people who SHOULD have been able to take advantage of these rates actually being able to do it and a continuing downward spiral in home prices.
- Keane Ng, "Keane Ng"
- Contributions:297
Greg Coe,
It's possible you may have been talking about HAMP, not HARP. On HARP loans, credit is not only used to qualify, the credit requirements are fairly strict.
Fannie Mae recently modified their DU system to not allow DTI that high either.
HARP loans do have credit and DTI requirements lower than you mentioned. Modifications, which fall under HAMP, are different but I'm not familiar with HAMP guidelines.
It's possible you may have been talking about HAMP, not HARP. On HARP loans, credit is not only used to qualify, the credit requirements are fairly strict.
Fannie Mae recently modified their DU system to not allow DTI that high either.
HARP loans do have credit and DTI requirements lower than you mentioned. Modifications, which fall under HAMP, are different but I'm not familiar with HAMP guidelines.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
Greg -
So you just call up Wells Fargo Home Mortgage customer service, then Press 5 if you want to Buy the Mortgage note for a steep discount?
Most of these HARP posts are loans that are performing, otherwise they would be seeking modifications. I'm sure you know that you aren't going to be able to hand pick and buy a performing note at a discount.
Also, can you let us know a few addesses where this has succeeded so we can confirm with title records?
- FirF
- Contributions:7
Any appraisal system that allows rapid growth and spiral decay is broken. A modification that does not adjust for this artificial profit/loss is simply a scam. An industry that feeds on the weak must be restructured in order to protect the liberty of the people, thereby allowing us to invest in our future.
- Gregory Coe, "Greg Coe"
- Contributions:12
seanframe, Look at all these other answers. They are not giving you very many real options. This Country's financial situation has placed most hard working Americans in an unfair position. Really look at what a loan mod is doing. Increasing your original loan with their fees, your late payments and trying to help by reducing your interest and maybe extending your loan to say 40 years. You have paid too much for your home from who ever told you that the home was increasing in value and was a good investment. No one really knew values would fall this much. I will buy your Mortgage Note today and rewrite a new loan at 90% of todays appraised value for a 30 year fixed max rate of 7.25%. Credit rating is not a criteria to qualify. You need to have a 55% DTI on your 1003 based on new payment. 1003 is what is showing on your credit report for all payments. email me: coebiltaz@hotmail.com
- Keane Ng, "Keane Ng"
- Contributions:297
Seanframe,
I thought I would follow up a few days after the last post. I spent a lot of time working with other Loan Officers and underwriters to come up with a guide for homeowners in your situation including alternatives to HARP.
http://www.keaneloans.com/2009/12/18/homeowners-guide-to-harp/
As you'll see in that post, HARP loans fit a very narrow scope of borrowers.
I thought I would follow up a few days after the last post. I spent a lot of time working with other Loan Officers and underwriters to come up with a guide for homeowners in your situation including alternatives to HARP.
http://www.keaneloans.com/2009/12/18/homeowners-guide-to-harp/
As you'll see in that post, HARP loans fit a very narrow scope of borrowers.
- mklearl
- Contributions:83
Everyone's personal situation is different. All I'm asking anyone to do is take a deep breath, step back, and evaluate their situation. Personally, I don't think seanframe would benefit walking. They don't have a huge loss. As soon as things turn around, making 18% back is not going to take that long. Espesially if they keep on paying toward the principle. It may not be a great mortgage, but they are not underwater...yet. Just ask yourself what the best option for you and your family is. Ask yourself where you'll be in 10 years. Although homes aren't like the stock market, it is an investment and an outlook on the long-term must be taken into consideration. The conclusion may be to walk, or it may be to bite the bullet...it is a personal decision that one should to take their time with and evaluate properly. I personally have been trying for over a year to get a loan modification...no luck. I have now hired an attorney to handle it for me to see if they can do something or to handle my forclosure...but I gave it a year with no changes. You can keep banging your head against the wall or take control of your life back...it's up to you!
- sal8026
- Contributions:6
MKLEARL -
I hate to say it, but you make a strong argument for walking away. As you stated, we were NOT playing a level playing field. Property values were artificially inflated and those that bought at the top got held holing the bag. There is no time in history that I'm aware of where you could buy real estate and year later see it lose 60% of its value. This is not a risky stock we are talking about, this is a brick and mortar investment which should be FAIRLY stable (unless we have fraudulent appraisals and lending creating a perceived shortage and massive demand).
I too am one of the idiots that bought at the top. I waited two years before I made the move and watched the prices go up and up. It was looking like the current prices where what you HAD to pay, otherwise you rent for the rest of your life - BAD CALL.
As it stands right now we are over 200,000.00 in the hole with our house. There are houses all around us in nearby neighborhoods where we can get a place 10x's nicer and for 1/3 what we owe now. So Id like someone to tell me who pats us on the back while we hold it for another 10 years and MAYBE see it back above what we owe. Meanwhile investors are buying houses throughout the years and picking up appreciation at a nice steady/safe pace. Do I want to walk?- of course not, this is our home, and I wanted it to stay that way. But the banks are in it to win, and they have our crooked government behind them 100% with our tax money. Why should the banks play fair?
This is another example of how the nice guy always finishes last.
I hate to say it, but you make a strong argument for walking away. As you stated, we were NOT playing a level playing field. Property values were artificially inflated and those that bought at the top got held holing the bag. There is no time in history that I'm aware of where you could buy real estate and year later see it lose 60% of its value. This is not a risky stock we are talking about, this is a brick and mortar investment which should be FAIRLY stable (unless we have fraudulent appraisals and lending creating a perceived shortage and massive demand).
I too am one of the idiots that bought at the top. I waited two years before I made the move and watched the prices go up and up. It was looking like the current prices where what you HAD to pay, otherwise you rent for the rest of your life - BAD CALL.
As it stands right now we are over 200,000.00 in the hole with our house. There are houses all around us in nearby neighborhoods where we can get a place 10x's nicer and for 1/3 what we owe now. So Id like someone to tell me who pats us on the back while we hold it for another 10 years and MAYBE see it back above what we owe. Meanwhile investors are buying houses throughout the years and picking up appreciation at a nice steady/safe pace. Do I want to walk?- of course not, this is our home, and I wanted it to stay that way. But the banks are in it to win, and they have our crooked government behind them 100% with our tax money. Why should the banks play fair?
This is another example of how the nice guy always finishes last.
- mklearl
- Contributions:83
I didn't say walk away, I just said that you are far better off and have far less to recover than most. I agree and I am also a responsible person who has also always paid my mortgage on time. Just tracking my home's value over the last 4 years is sickening, and watching the same house accross the street in forclosure sell for 25% of what I paid for mine is insane. But you can sit there and stew about it or weigh all your options and do what's best for YOU! You know what they say about nice guys, right? 10 years from now people who walked are going to be smelling like roses where the people who tried to "do the right thing" are going to lose out on the deal. If you find a way to convince America to do the right thing and pay their mortgages, even if it was a bad one, let me know. Otherwise, step back, evaluate your situation, and do what's best for you and your family! No one else, including the banks give a rats-azz about anyone but themself, why should you?
- FirF
- Contributions:7
We only lose a fraction if we walk away, and no one wants us to do that, including ourselves. We want to pay our loans, we can pay our loan, we are qualified and capable of paying them because our income is enough to cover the bills because we are responsible borrowers. However, the appraisal system lied to us. It was supposed to protect us and the bank, but instead it allowed rapid artificial inflation, and now we are supposed to sit around watching the equity drop while the rate stays the same? Its a ridiculous one sided-ed situation and the only reasonable thing is for us to walk. Why are investors forcing us to push them out the window? I have PMI, and the latest updates to HARP allow people with PMI to "refinance" I believe while retaining the PMI. However, they are adding on .875 to my rate because I am over 105%, even though the program allows up to 125%. This rate bump puts me over my current rate, so I am out the hundreds in underwriting, and unless the market stops artificially holding interest rates at this level, I will never be able to refinance because people are too busy picking at the bones, instead of realizing their practices is causing the herd to move on and soon everyone will starve. Good Job!
- mklearl
- Contributions:83
"My loan is a standard 30 year fixed. The rate is bad, not due to an ARM, but due to the time we purchased our home (August, 2008.) We got a good deal on our home, but, due to foreclosures in the area, the home is down about 18% since we bought it, meaning most of the 20% we put down has been lost--which keeps us from doing a standard re-fi."
Sorry seanframe, but I think the banks are pretty busy trying to sort out the mess from people who bought their homes in 2005. An 18% reduction? I'd kill for that right now. Try over 50% reduction...and foreclosures in my area selling for 20% of what I paid for my house in 2005. If I were you, I'd count your blessings, thank God that you bought your house in 2008, and appreciate the fact that you're only losing a fraction of what you saved on the house by buying it later!
Sorry seanframe, but I think the banks are pretty busy trying to sort out the mess from people who bought their homes in 2005. An 18% reduction? I'd kill for that right now. Try over 50% reduction...and foreclosures in my area selling for 20% of what I paid for my house in 2005. If I were you, I'd count your blessings, thank God that you bought your house in 2008, and appreciate the fact that you're only losing a fraction of what you saved on the house by buying it later!
- Andrew Adams, "203K Specialist"
- Contributions:9349
The goal is to stop polluting the MBS pools. So that the govt can back out of the MBS purchase program without rates going to 20%. As Bob has pointed out what is the point of refinancing a loan for a borrower that doesn't qualify. All that would do is make the MBS pool worse...making MBS's less attractive to buyers and driving up mortgage rates. The program is not a hand out...if you qualify you can take advantage of the opportunity...if you don't you can't.
No-the Govt is not buying these loans, they are participating in the purchase of Mortgage Backed Securities but they are by no means the only buyer.
No-the Govt is not buying these loans, they are participating in the purchase of Mortgage Backed Securities but they are by no means the only buyer.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Guidelines go up to 55% on HARP with WF. This isn't trying to help the consumer? And, if they do not qualify for the HARP, they can apply for a loan modification.
I do not see the benefit of taking a borrower out of one loan they can't afford and putting them into another loan they can't afford. If the ratios are >55%, then you probably can not afford the home.
The lender would also be taking the consumer out of a insured loan and putting them into an uninsured loan if they don't meet the guidelines. I don't think this would be a good idea for all of their stock holders and account holders. Do you think the OTC would think these are good practices?
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
seanframe - curious what is your current ridiculous rate? I have seen HARP loans complete with debt ratio as high as 65%, however many lenders will not complete any loan over 45 or 50 or 55 debt ratio as examples, so it might be you can still get approved in HARP at other lenders.
I agree HARP is largely to protect the noteholders risk. He who has the money makes the rules.
I agree HARP is largely to protect the noteholders risk. He who has the money makes the rules.
- seanframe
- Contributions:3
My loan is a standard 30 year fixed. The rate is bad, not due to an ARM, but due to the time we purchased our home (August, 2008.) We got a good deal on our home, but, due to foreclosures in the area, the home is down about 18% since we bought it, meaning most of the 20% we put down has been lost--which keeps us from doing a standard re-fi.
Our lender verbally assured us that they would hold the appraisal from the 8/08 purchase for 6 months, then went back on their word when we wanted to do a regular re-fi in 12/08.
HARP works for us because it allows for up to 105% ltv. Declining business revenues (income) made our debt to income ratio 'bad' which meant we didn't qualify for the HARP even though it would be lowering our payment. As is typical of most of these 'programs', they are crafted with the bank's best interest in mind, not consumers... and why shouldn't they be crafted this way? Everyone knows the meltdown was caused by greedy homeowners and Barney Frank...
Our lender verbally assured us that they would hold the appraisal from the 8/08 purchase for 6 months, then went back on their word when we wanted to do a regular re-fi in 12/08.
HARP works for us because it allows for up to 105% ltv. Declining business revenues (income) made our debt to income ratio 'bad' which meant we didn't qualify for the HARP even though it would be lowering our payment. As is typical of most of these 'programs', they are crafted with the bank's best interest in mind, not consumers... and why shouldn't they be crafted this way? Everyone knows the meltdown was caused by greedy homeowners and Barney Frank...
- FirF
- Contributions:7
Is a HARP loan not being bought by the government? Loan to value should have nothing to do with it. My appraisal is crap because the people down the street needed to sell and/or were willing to take a loss. There is no reason I should have a random interest rate add on because statistics and probability say stealing my money will cover the potential loss. Human beings are not stocks, and we should be working together to lower the risk, instead of passing the loss on to the people who are drowning, making it a self fulfilling prophecy. Specially not with a government funded program that was supposed to stop all this madness. I am only a risk if you make me one.
Was turned down for a Wells Fargo HARP loan due to "bad ratios". Are they insane? What can I do?
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