Yes, I was late to get loan modification. Also loan modif. was by Bank America but 2 months later they sold my loan to green tree.Here are our revised Loan Modification guidelines for the HARP refinance:
Loan Mods When the borrower has done a loan mod in the past we can offer them a loan if the following has happen:
12 months seasonings since the loan mod No lates prior to the loan mod
It's definitely a tough box to fit in as most people were "required" to go behind in order for the bank to consider a loan modification. I wouldn't be surprised if these guidelines are updated soon to allow a refinance after making 12 months of payments on time. I'll keep everyone in the loop if I hear of anything new.
- Borrower provides a copy of the modification (showing it is a permanent mod)
- The modification could not have provided forgiveness on the principle owed or interest owed
- This applies to conventional and FHA loans. If the borrower cannot meet all of the above requirements we must wait 3 years to offer them a loan.
Hi Erick, thanks for your reply. I went first to my servicer (Wells Fargo) but they required me to reaffirm my mortgage. This is why I started looking for other mortgage servicer. I tried Quicken Loans and another local mortgage company and both ran my application through Freddie Mac's underwriting system (not sure what it's called) and was again denied. They only mentioned that the HARP program is not available for me due to my current BK status. Quicken Loan and this other mortgage company advised me that, "due to changing HARP guidelines", they asked me to try my application again after couple of months to see if the program is finally available.Hi D'Lion,
HARP still does follow typical Fannie Mae & Freddie Mac guidelines on bankruptcy so yes you are correct. Now there are two different parts of the program, one is called Same Servicer and the other Open Access. The Same servicer program would be through the mortgage company you currently make your payments to. They may be able to override the bankruptcy seasoning periods but I can't confirm or deny that because I work on the Open Access side.
The mortgage company may also know that the only direction you have to take is with them and I would only assume they would artificially increase the interest rate. I can't confirm or deny that suspicion.
If you would be so kind as to respond back with what you encounter it will only help our LoanSafe members that are in your same position. I'll double check on Monday also to see if anything has changed in regards to seasoning on BK but I am almost positive that it has not.
Hi Ruth,
Thank you for reaching out to us here at LoanSafe, we appreciate you sharing your story as many others are in the same position. The HARP program does require that your loan is backed by Fannie Mae or Freddie Mac to confirm your question. They were working on legislation to pass a program for borrowers that owe more than the home is worth but are NOT backed by Fannie & Freddie however it seems to have been stalled for quite some time. The program is called HARP 3.0, but again it hasn't been released yet and we don't know if it ever will be.
President Obama specifically stated that "Every responsible homeowner in America should be given the opportunity to refinance". However to this day we still don't have a program outside of loan modification that can help someone that is not backed by Fannie or Freddie.
If I were you, I would go back and check your original modification documents. Typically there is an increase in rate after 5 years and then it should cap out at a certain percentage rate (for most modifications) that is usually somewhere around 4.5%. In addition to that you may want to re-apply for a loan modification if the payment isn't affordable to you now.
If you would like to be added to my HARP 3.0 mailing list please feel free to shoot me an e-mail at [email protected] and I can keep you updated with any progress of the program.
Hi Eric,Hi Ruth,
Thank you for reaching out to us here at LoanSafe, we appreciate you sharing your story as many others are in the same position. The HARP program does require that your loan is backed by Fannie Mae or Freddie Mac to confirm your question. They were working on legislation to pass a program for borrowers that owe more than the home is worth but are NOT backed by Fannie & Freddie however it seems to have been stalled for quite some time. The program is called HARP 3.0, but again it hasn't been released yet and we don't know if it ever will be.
President Obama specifically stated that "Every responsible homeowner in America should be given the opportunity to refinance". However to this day we still don't have a program outside of loan modification that can help someone that is not backed by Fannie or Freddie.
If I were you, I would go back and check your original modification documents. Typically there is an increase in rate after 5 years and then it should cap out at a certain percentage rate (for most modifications) that is usually somewhere around 4.5%. In addition to that you may want to re-apply for a loan modification if the payment isn't affordable to you now.
If you would like to be added to my HARP 3.0 mailing list please feel free to shoot me an e-mail at [email protected] and I can keep you updated with any progress of the program.