News for those waiting for HARP 2.0

sometimes its better to walk away

I am not disagreeing with that as a general statement, but everyones scenario is different and the consequences associated with walking away are just too much for many to bear.

For those sticking with their housing obligations at least there are some programs designed for upside down borrowers that may bring some relief in this low interest rate environment.

http://articles.latimes.com/2009/...-2009nov29

Quote from cavan : http://articles.latimes.com/2009/...-2009nov29

Just one guys perspective who does not believe in personal responsibility and definitely not knowledgable about the consequences.

Quote : "Better yet, homeowners can default "strategically": Buy all the major items they'll need for the next couple of years -- a new car, even a new house -- just before they pull the plug on their current mortgage lender."

Don't eat lunch with that guy. He'll order two meals, get a doggy bag, and "strategically default" when you turn your back, leaving you with the check.

Looking forward to the updates, especially on pricing. The original HARP, the re-fi costs were too costly. I was seeing $6-8K closing costs for a $130K mortgage.

Quote from flee : Looking forward to the updates, especially on pricing. The original HARP, the re-fi costs were too costly. I was seeing $6-8K closing costs for a $130K mortgage.

flee, the current HARP has two different pricing tiers. 1) loans up to 105% LTV and 2) loans >105-125% LTV. The first tier pricing is comparable to regular conventional pricing. The second tier has pricing adjustments.

The costs you cite do not seem realistic for a 130k loan amount and you should look into that further.

If you qualify for the current HARP I would suggest pursuing the current program. I have no idea how HARP 2.0 will be priced, but my guess is it will not be better as the lifting of the LTV limits adds obvious higher risk to the loan product. Higher risk = higher pricing.

I hope with HARP 2.0 they do maintain LTV tier pricing and not everything is combined into unlimited LTV pricing.

Feel free to PM me and I will update all as I receive more news.
-Adam

My existing loan holder, Provident funding does not participate in the program. I am around 125% LTV. So I was looking at other lenders. Most of the closing costs were around $6K. Im in FL, know any 125% lenders with good rates/closing costs?

Also, I heard 2.0 was supposed to also have lower closing costs. More incentives for lenders and borrowers.

What other options are out there besides HARP? My 1st/2nd mortgage are not fannie mae or freddie mac. Am i screwed?

I have a 1st for $98K @ 7.5% & 2nd for 42K @ 12%!
and now my house is worth 125K at best
is my only way to refi is to bring money to the closing?

Quote from salsageek : What other options are out there besides HARP? My 1st/2nd mortgage are not fannie mae or freddie mac. Am i screwed? I have a 1st for $98K @ 7.5% & 2nd for 42K @ 12%! and now my house is worth 125K at best is my only way to refi is to bring money to the closing?

salsageek, you are indeed in a tough spot without Fannie or Freddie owning your current 1st..
One thing I am seeing quite a bit of with your type of scenario is 2nd mortgage holders agreeing to a significantly reduced payoff to get themselves out of this scenario. I am not referring to delinquent accounts but those accounts which have performed for them and now they see their equity position is also gone. Each is reviewed on a case by case basis.
Speak to your 1st mortgage holder and see what they could do IF your 2nd mortgage holder reduced their payoff. Start there.
Be prepared for a frustrating and time consuming process; and I hope you can make some headway.
There is no doubt you are in a tough spot but try and stay positive; and I wish you luck.

Quote from flee : My existing loan holder, Provident funding does not participate in the program. I am around 125% LTV. So I was looking at other lenders. Most of the closing costs were around $6K. Im in FL, know any 125% lenders with good rates/closing costs? Also, I heard 2.0 was supposed to also have lower closing costs. More incentives for lenders and borrowers.

flee, not all lenders participate in the 125% and cap themselves at the 105%. Out of my 12 lenders only 4 participate in the 125%

I have not seen anything concerning lower costs but, from what I have read, with HARP 2.0 the lenders will have more incentive as there will be no recourse for the lenders to be on the hook for loans that go bad.

flee, what is your current rate?
While you have FL mortgage tax and FL Intangible taxes that figure still seems high to me and should be able to be offset partially by some rate credit where you can benefit.

Thanks for the advise tiedyed1. I spoke with my 1st and they said they don't do any refi. they told me my best bet is to refinance locally. I am hoping I could come up with at least 10K from savings and tax return so i can use it for a refi.

Quote from tiedyed1 : salsageek, you are indeed in a tough spot without Fannie or Freddie owning your current 1st.. One thing I am seeing quite a bit of with your type of scenario is 2nd mortgage holders agreeing to a significantly reduced payoff to get themselves out of this scenario. I am not referring to delinquent accounts but those accounts which have performed for them and now they see their equity position is also gone. Each is reviewed on a case by case basis. Speak to your 1st mortgage holder and see what they could do IF your 2nd mortgage holder reduced their payoff. Start there. Be prepared for a frustrating and time consuming process; and I hope you can make some headway. There is no doubt you are in a tough spot but try and stay positive; and I wish you luck.

Here is an update for those waiting for HARP 2.0

I received notice from Wells Fargo that starting February 6, Wells Fargo will be registering HARP loans under the HARP 2.0 product name.

However, do not get excited yet : "The Loan-to-Value (LTV) enhancement offered by Freddie Mac and Fannie Mae will not be available to the Wells Fargo Wholesale channel until a thorough assessment of the impacts has been made."

Keep in mind that this is just Wells Fargo's latest notice, but it can be seen as an optimistic view that the expanded LTV HARP 2.0 program is getting closer to being available. I have >12 lenders i regularly use and Wells is usually the first to step out with news and the rest follow.

I will continue to update as I receive news.
-Adam