Seterus Harp Refinance Success Story

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,049
161
63
San Diego, California
www.loansreduced.com
Hi LoanSafe Members,
After hearing multiple complaints about Seterus from hundreds of our valuable members I have decided to write an article to hopefully help more homeowners that are still having trouble with the HARP Refinance. It's quite interesting what our members say when I talk to them about Seterus, they have created some very interesting nicknames for them (I'll keep it PG in this post).

Recently I had a loan that was referred to me by a previous client that I did a HARP Refinance for who originally found me here on Loansafe. After refinancing his home, we refinanced his sisters house and now working on his neighbors. It was a Manufactured Home HARP Refinance in California.

To elaborate what happened that was quite strange is when I tried looking their property up on the Fannie Mae lookup it was not showing up no matter how I typed the address, social, borrowers name...etc. I called Seterus and they told me this is a Fannie Mae backed loan, call Fannie Mae and they can tell you what to do. Ok...Now on to Fannie Mae once I had reached out to them they said we don't see this address in our system at all. You need to go BACK to Seterus and get the "Fannie Mae Investor Loan Number" - Well...back to dealing with Seterus. They very willingly gave me the information I needed to communicate back with Fannie Mae to hopefully obtain a solution.

At this point of the process I'm starting to lose my marbles and really doubting whether or not this will actually work.

Now back to Fannie Mae, I provided them with the "Fannie Mae Investor Loan Number" and of course the Fannie Mae reps computer was having problems and had to shut down. He went to his colleague and pulled everything up in the system. Here comes the fun part. Fannie Mae told me that they did not have the address on file but did have the APN and I had to input that into the system in order for it to recognize it as a Fannie backed loan. Sure enough, it worked.

Throughout this I learned a few things and thought I would educate homeowners who still have yet to take advantage of the HARP refinance.

  • If your loan does not show up in the Fannie Mae or Freddie Mac system, call your Servicer.
  • Seterus ONLY services Fannie Mae backed loans
  • Every Seterus loan could be eligible for a HARP Refinance
Hope this helps to anyone who is having a hard time with a HARP refinance. Feel free to reach out to me with any questions.
 

PWOPM

LoanSafe Member
Jul 31, 2014
89
8
8
Wow! Congrats! When I tried to refi my turd err seterus mortgage (before deciding to walk) the lenders I talked to referred to my loan as "Toxic" and the quicken guy said I should walk away..
 

Housebroken13

LoanSafe Member
Jul 17, 2009
814
13
18
Hi Erik, my loan is serviced by Seterus and is Fannie Mae backed. I have a MIN number. My homes market value is around $180,000 and my balance (modified w/ Bank of America) is approx .$291,000. My loan modification did not include a principal reduction.

I am located in CT. My mortgage was discharged in a 2009 Chapter 7 BK, but we have stayed and payed. Because of the discharge Seterus no longer sends me statements and I make payments over the phone. They also no longer report to Credit Bureaus.

My credit score has improved approx 680, and I really want to do something about my home loan. Upon filing taxes I realized I paid over $9000 in interest this past year and my property taxes are approx. $6000.

My monthly payment right now is $1630 and interest rate is around 4.5%.

What options to I have to address my situation? Not sure if HARP is right for me.

My house is small and its quickly becoming a bit tight for my family to live in. It's a cape with a walk up attic and we would love to expand but obviously have no equity at this point...

Would appreciate any help/insights you could provide.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,049
161
63
San Diego, California
www.loansreduced.com
Hi Housebroken13,
Thank you for explaining your situation, this is great info and gives me an idea on how to direct you.

Regarding the details:
Home Value: 180,000.00
Loan Amount: 291,000.00

You are still severely under water which would make HARP an option in this circumstance but I would make sure prior to engaging in the refinance that you are certain you want to keep the property rather than short selling or foreclosing. At this stage of the game I would consider what is going on in the market in CT. Are you seeing a steady increase in home values? Have you seen them start to level out?

In addition to taking into consideration the above information I would also consider what terms you may be eligible for. I am licensed in CT and would be happy to discuss terms with you.

If you prefer to be anonymous all I would need to know is:
Property Type:
Occupancy Type:
Credit Score:

With that information I can give you an idea of what rates are available under the HARP program which will help you determine if it is worthwhile.

Also feel free to e-mail me at: [email protected]
 

Housebroken13

LoanSafe Member
Jul 17, 2009
814
13
18
Thank you for the reply.

As far as home values go I would say they are leveling out; and from what I see from a sales standpoint the majority of homes are having their list prices decreased on average 2-3x before they get sold. We certainly are not seeing the rises some other areas of the country are.

Property Type: Single family, 1 story w/ walk up unfinished attic
Occupancy Type: Residential
Credit Score: Approx. Me: 670, Wife: 630

If we stay the kitchen needs a remodel, we would like to finish the walk up attic, and windows need to be replaced.

I paid almost $9600 in interest last year and approx. $6000 in property taxes. My principal balance barely budged...

I would add that the rental rates for residential homes in the area are fairly high. Market rental rate for my home would be between $1800-$2000 per month and my mortgage payment right now is around $1600 (including taxes).
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,049
161
63
San Diego, California
www.loansreduced.com
I just checked and we are capped at 125% Loan to Value based on investor requirements. Unless your loan is backed by Wells Fargo, if so we can go up to a higher LTV. Now if we were to run the system and put it as 125% LTV and the system accepts the value (and doesn't require an appraisal) we can do it.

Now this is not the case with every lender, I'm almost certain that I was able to go up higher on the LTV when I was with my prior company. HARP loans are very rare and don't come around often, but based on the info you provided I took a look at what you would have at 125% LTV and a 630 FICO (if wife has to be on loan) and it would be as follows:

Fannie Mae DU Refi Plus 30 YR/Fixed:
Current rate: 4.75 - 4.875 no points
Monthly P&I Payment: 1525 (estimate without tax and insurance)

I also just checked and the rate is the same even with the higher FICO and that is due to the HARP adjustment "caps".
 

Housebroken13

LoanSafe Member
Jul 17, 2009
814
13
18
Okay - That helps.

My loan is backed by Fannie Mae not Wells Fargo.

So my payment looks like it might be the same or possibly increase.

Do they do anything w/ the principal balance w/ HARP (Reduction, ect)?

I know this is a HARP thread but is there any possibility of me being able to qualify for a loan on another home and rent the current one out?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,049
161
63
San Diego, California
www.loansreduced.com
Serviced by Wells Fargo***

The loan is basically identical to a traditional refinance and the new loan is based on the payoff received by the previous lender. It isn't where you would receive a principal reduction, that would only be through another loan modification or internal mod program with the current loan servicer and investor.

Yes absolutely you can qualify for a new home loan with renting the old one out. We would take 75% of the gross rent and use that to offset the mortgage liability since the home doesn't have history of being a rental.
 
S

Stacy brum

Guest
I to had seterus and went through the harp program now that seterus shut down and sold our mortage we tried to refinance and was told we coykd not unless we paid the amount that harp took off our principle our understanding was it would not have to be paid back under the harp program as long as we didnt sell our home and after 5 years the harp would drop and and we would owe nothimg but nobody can give me an answer as to why it shows up as a 2nd on our home and when it drops off or any information. We were told to call seterus and find out and we can not find a number to even get ahold of seterus.