Home Loan Wholesale

Directory Listings of Top Lenders & Loan Brokers Online

November 14, 2012

Frequently Asked HARP Mortgage Refinance Questions

Category: Home Affordable Loans – admin – 12:29 pm

The HARP 2.0 has been one of the few government programs that have actually succeeded in its goal to provide aid for homeowners stuck with an underwater mortgage. For many years, people with negative equity were unable get qualified for mortgage rate refinancing because their loan to value was too high. The latest program from Fannie Mae and Freddie Mac removed the loan to value ratio completely so the ban on underwater refinancing was lifted for any borrower that had a mortgage owned by Fannie or Freddie that was closed prior to the May 31, 2009 deadline.

Will the Homeowners Continue to Seek the Government for Underwater Refinance Solutions in 2013 and 2014?

Lead Planet founder, Bryan Dornan published an article worth reading called, How to Refinance an Underwater Mortgage. There are many indications that President Obama will push a measure that will roll out HARP 3.0 to the pool of borrowers that were outside the boundaries of HARP 2.0.

Question: Can I qualify for a HARP refinance if I am presently delinquent on my mortgage?

Answer:  No, Homeowners who are currently delinquent or have been more than 30 days overdue during the past 12 months generally will not qualify. Contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you

Question: Can I get cash out of a HARP refinance to pay other debts?

Answer: No. The Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts.

Question: I have both a first lien and a second lien mortgage. Do I still qualify for a refinance under HARP?

Answer: Your eligibility will depend, in part, on two additional requirements:

•The lender that has your junior lien mortgage must agree to remain in a junior lien position.

•You must be able to demonstrate your ability to meet the new payment terms on the first lien mortgage.


No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.