Fustrated with Seterus/Quicken Loans and HARP

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fustratedinCt

LoanSafe Member
Apr 14, 2013
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I bought by house (located in Middletown, Ct) inJuly of 2006 with no money down (this is also a Fannie mae Loan), about a year and a half ago I tried torefinance to try and get a lower interest rate and to try and lower mypayments. When they did the appraisalthe value of my house dropped quite a bit and I owe about $30,000 more than thehouse is worth at this time. When Itried to refinance I was going through a broker and they could not help me anymore. I contacted my mortgage holderSeterus and explained my situation to them. I had also lost my part time job so I had a loss of income total wasaround $15-20,000 a year (I still have my full time job). Seterus saidthey could not do a modification because I was not behind or late on mypayments. They said I should try theHARP program and they contract with Quicken Loans to do that aspect for theirmortgage clients. I contacted Quicken,and tried to do the HARP 2 program, they said all my paperwork and situationlooked good for approval, then after a few weeks, nothing had happened, Icalled and they said that my PMI provider was not doing the HARP program, andto wait and see if they come online in a few more weeks. I waited and asked again, still no luck, thenthey said I should try to go through another bank. So I took the time to go to other banks andasked about refinance through HARP, and come to find out you can only do theHARP program through your current mortgage holder. I called quicken back and asked if there wasanything else I could do. They said tocall the PMI company and find out why they were not doing the HARPprogram. I called them and found outthat they do the program and it was Seterus/Quicken that was not up to datewith their paperwork to accept my PMI in their program. I called back and questioned them and got nowhere, then they suggested to see if I could change my PMI provider, I calledmy PMI provider again and they said that I was locked in and the only way tochange companies is to refinance and change the terms of my mortgage. Called Quicken and Seterus back and explainedthis and got no where. With in the last4 months got a call from Quicken and they said I should be good to go with theHARP refinance a few weeks went by and have not heard from them, called andthey said there was a problem with the PMI again and that I was paying too highof a percentage and they could not get the refinance to go through and to keepchecking back with them.

Ihave been getting nothing but the run around from them and I am at my breakingpoint.

I also put a new roof on the house with in the past year, (had to take out an emergency line of credit which I am still paying)
and the house is in desprite need of Siding and new windows, estimate to do that is 20-30,000

Where do I go from here? Do I just walk away and let the house go into forclosure? I dont want to leave the house but its looking like my best option is to just walk away

Thanks For taking the time to read my story

thanks again
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Hi FrustratedinCT,
Welcome to the forum, you found the right place to get your questions answered and what you're experiencing isn't anything new. Unfortunately many homeowners have been denied by Quicken who is contracted by Seterus to do the HARP program for them. It seems many homeowners are not happy with the way they have conducting business.

I want to clarify the problem that you're experiencing and I'm sure there's many other people in the same position.

Question:
Do you have to go through your current bank for a HARP refinance? Absolutely NOT, this is one of the biggest misconceptions and is something that these banks have been using as a tactic to keep your business with them. You have the option of going with any lender participating in the HARP program.

Why is Quicken saying my Mortgage Insurance Provider isn't participating in HARP? It's NOT the MI provider, it's Quicken who is not approved with that MI provider to transfer the certificate over to the new loan. It's an approval process that every lender must go with each MI company who backed loans prior to May 31st, 2009.

We are a direct lender offering the HARP program, unlimited LTV and approved with all MI providers to transfer the certificates to the new loan. I wouldn't wait for false hopes from Quicken, you may miss out on the great rates today still has to offer.

Before you decide to take a direction of foreclosure, I would like to speak with you about the options you have and determine if the new monthly payment will be affordable after the refinance. I can find out in a matter of hours upon receiving documentation if you're eligible or not, no excuses...that really bothers me when people string you along. If the payment sounds affordable (including the new mortgage insurance) - discuss that with your family and if you think it's a good option - take it. If it's not enough of a savings it may be worth it to evaluate all options.