Harp 2.0 Fannie Mae owned , Suntrust Mortgage, chapter 7 Bankruptcy discharged

RockyP

LoanSafe Member
Feb 9, 2012
4
0
0
Suntrust Mortgage
purchased 11/2007 $417,000 30 yr fix at 6.375 %
current balance 1st mortgage 392,000
Zillow Zestimate value 534,800
2nd Mortgage Sovereign 110,000 interest only 3.5 %
single family
Fannie Mae has my loan
Chapter 7 Bankruptcy was Discharged 11/2011
did not reaffirm 1st or 2nd mortgage
current on both loans
no lates in the last 12 months
All I provided to a Suntrust Mortgage broker was my loan #

Suntrust Response
Ill check for harp elegibility
What's your loan number?

Suntrust Response :
I checked for HARP-2 eligibility on your Fannie Mae loan.
Your loan is not eligible for the manual version which is the version that would allow the bankruptcy. The manual version does not require the running of automated underwriting (DU).
You would then default to the automated version, however the automated version requires 4 years after discharge on the bankruptcy.

My Response:
Thank you so much for looking into this for me so quickly. What is it about my loan that makes it " not eligible for the manual version which is the version that would allow the bankruptcy "
Suntrust Response:
I don’t know; sometimes it depends on how the loan was originated; if it was done as no doc or light doc, both of which Fannie Mae used to offer, then it’s often not eligible for manual.

Can anyone tell me if this all makes sense ?




 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org

RockyP

LoanSafe Member
Feb 9, 2012
4
0
0
Has there been any changes with Suntrust Mortgage overlays ?


Suntrust Mortgage
purchased 11/2007 $417,000 30 yr fix at 6.375 %
current balance 1st mortgage 392,000
Zillow Zestimate value 534,800
2nd Mortgage Sovereign 110,000 interest only 3.5 %
single family
Fannie Mae has my loan
Chapter 7 Bankruptcy was Discharged 11/2011
did not reaffirm 1st or 2nd mortgage
current on both loans
no lates in the last 12 months
All I provided to a Suntrust Mortgage broker was my loan #

Suntrust Response
Ill check for harp elegibility
What's your loan number?

Suntrust Response :
I checked for HARP-2 eligibility on your Fannie Mae loan.
Your loan is not eligible for the manual version which is the version that would allow the bankruptcy. The manual version does not require the running of automated underwriting (DU).
You would then default to the automated version, however the automated version requires 4 years after discharge on the bankruptcy.

My Response:
Thank you so much for looking into this for me so quickly. What is it about my loan that makes it " not eligible for the manual version which is the version that would allow the bankruptcy "
Suntrust Response:
I don’t know; sometimes it depends on how the loan was originated; if it was done as no doc or light doc, both of which Fannie Mae used to offer, then it’s often not eligible for manual.

Can anyone tell me if this all makes sense ?




 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Has there been any changes with Suntrust Mortgage overlays ?
Lenders have many HARP applications in process so it can easily take 1-2 months or more before they finish reviewing and make a decision on your account.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
Hey Rocky,
They may very well be right, I'm not an expert with the "Same Servicer" HARP program which sometimes allows bankruptcy however what he's saying could be accurate. I have a contact over at Citi that does the same thing, he can check if the loan is HARP eligible by plugging in the loan number.
 

RockyP

LoanSafe Member
Feb 9, 2012
4
0
0
Hi Even,
I never submitted a application with Suntrust Mortgage for the streamline. Tim S. told me that Suntrust Mortgage could not do it.

Lenders have many HARP applications in process so it can easily take 1-2 months or more before they finish reviewing and make a decision on your account.
 

jamendan

LoanSafe Member
Feb 23, 2013
8
0
0
illinois
Hi RockyP - any progress with this yet? We are in almost exact same situation. We are post Ch 7, loans discharge but are still paying, and are thinking about trying HARP through Suntrust. I think the house has to be underwater to qualify for HARP. Our other choice is to stop paying and leave when house forecloses, but that freaks us out. Have you had any luck?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
Hi Jamendan,
For HARP your home doesn't necessarily have to be underwater but if you're below 80 percent it may be more beneficial to go for a conventional route if you qualify due to better interest rates. The HARP "Same Servicer" program is the only conventional refinance option that I know of that can overcome bankruptcy.

It seems like some people qualify and others don't. The wording the Loan Officers have been using that work under the "Same Servicer" program is "Your file has been denied for the streamline program and has been downgraded to manual underwriting. With it being manual underwriting, the bankruptcy will become an issue"

That's what I've heard.

I operate under the HARP open access program and there is a 4 year requirement for CH7, 2 year requirement for CH13.
 

jamendan

LoanSafe Member
Feb 23, 2013
8
0
0
illinois
Hi Erik - So then we should try for the Same Servicer HARP program through Suntrust? They have both our 1st and 2nd on this home, so I hope that improves our odds, at least as far a subordination for the 2nd.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
Hi Jamendan,
Yes, I would try the same servicer direction if you have received negative response from other lenders offering the HARP program. We are licensed in IL but have the restrictions on BK that I posted above. Every lender besides Suntrust will unfortunately have the same restriction.
 

RockyP

LoanSafe Member
Feb 9, 2012
4
0
0
Hi Jamedan - I have not submitted an application to Suntrust Mortgage because I have been told by Suntrust that I do not qualify for harp 2.0 because of the way my loan was originated. I think they may consider it ALT- A loan, but I put down 20 % down on the first & suntrust gave us a 2nd mortgage which soon after we closed I refinanced the 2nd with Sovereign Bank & paid off Suntrust. I wonder if that is the reason it was considered ALT- A With the Bankruptcy which will be discharged two years ago in another 4 months. I am just so frustrated that I have a 6.375 % rate no late payments on my mortgage & my P&I could go down be almost 900.00 dollars a month with interest savings over the life of the loan 140,000 dollars.