We have recently heard from several of our loan officer friends that so far HARP 2 has been a failure. It is clogging lender pipelines and they appear to be denying many of the submissions. Is this another case of false hope or are there some success stories out there? Please share your experiences!!
Wells Fargo Bank is worst. Submitted paperwork twice and they lost it both times
I closed on my HARP2 loan 2 days ago. Took 4 weeks from start to finish. LTV was only 55% however, so hard to compare to those who are underwater. I ended up paying off the 2nd mortgage rather than asking for a suboridination, because that just seemed a pain in the neck.
Closed one took 6-7 weeks, was a duplex, investment property. Lowered rate to 4,625%. Was not under water and was cash flowing before refi. Second rental they denied was not under water enough. Those were Chase. Third property has been in process for 8-9 weeks with Citi they keep asking for this and that. But they informed me they are under staffed to keep up with the demand.
I have tried twice and both times denied! My lender said credit, income and value of the home plays a factor eventhough everything i have read contradicts what they say… what else can i do???
With 17 years in the business, I am investing heavily in this. I have personally closed 4 now and have a pipeline of 8 currently. Mix between investment/owner occupied. Rates from 3.75% 15 years to 4.375 fixed 30 investment property. They are not easy but knowing the pitfalls I am preparing for a very good year
Hi Jessica, I know this sounds crazy but sometimes doing nothing in cases like this is the best bet. I have seen so many situations where the lender has offered a modification at the last minute prior to the foreclosure sale. That said, they are under no legal obligation to modify the terms of the loan and at the end of the process you could lose the home to foreclosure. I have personally seen people that have walked from the house move back in after a year and modify the loan. I have heard of modification offers when the homeowner is trying to short sale the home. I have heard of lenders offering to rent the property after the foreclosure sale. I can only tell you that it is the wild west out there. Sometimes the further you go down the foreclosure road you go the more options that are made available. It is counter intuitive for responsible people to even consider doing. Every day, just when I think I cannot be shocked, I hear another crazy story about a last minute offer by the bank to help someone stay in their home. I think it boils down to your tolerance for risk and living in a perpetual state of limbo.
We closed several HARP 2.0 programs. If you’re interested in knowing more please call Michael at 909-931-7801. We did HARP 2.0 up to 180% ltv at 4.25% 30 year fixed rate.