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Are there any HARP 2.0 lenders who will work with someone in Chapter 13 Bankruptcy?

I am eligible under the HARP guidlines and I even contacted the HARP program directly and they said the bankruptcy does not disqualify me, but I've been told no 10 times. I have everything else in my favor. High federal government employee income, credit scores in the 620-650 range, fairly decent loan to value ratio. Never late on my mortgage. by robyne_501_374 from Fort Washington, Maryland. Jun 24th 2012 Reply


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#0 ranked lender in

There are a lot of things that HARP says, but it doesn't mean a lender will do the loan. Almost all lenders have "Overlays" on their products, these are guidelines that they put in place to protect themself in the case of a foreclosure. You're going to need to keep calling around to see if someone can help you, check with brokers vs. Banks because brokers have more than one source of funds to get loans from.

Jun 24th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 4,732 contributions

HARP does not disqualify you if you have a chapter 13, but the lender can set their own rules, and most will disqualify you.. Work on improving your credit and I'm sure some lenders might lighten up on the guidelines.. this program expires in December 2013, so there's plenty of time... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 24th 2012
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Joel Lobb (kentuckyloan)
#4 ranked lender in Kentucky - 187 contributions

Is it a Chapter 13 or 7?

Jun 25th 2012
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#1 ranked lender in

While it may not disqualify you lenders would want at least 24 months since discharge of your BK,

Jun 24th 2012
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Linda Wintersteen (Linda123)
#2 ranked lender in Arizona - 890 contributions

First, when is your bk discharged?? who is your lender?? credit score number can be a issue. what is your loan size?? I work with lenders that do not have all of the bank overlays, but there are some considerations first. linda email at yourloanpartnerforlife@live.com

Jun 24th 2012
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I'm currently in Chapter 13 Bankruptcy. It will be another 2 1/2 years before its discharged.

Jun 24th 2012
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#1 ranked lender in

Since your currently in BK proceedings you won't be able to much of anything.

Jun 24th 2012
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Peter Botros (PeterBotros)
#75 ranked lender in New York - 895 contributions

Its just like FHA...The government has rules and mortgage companies have rules too so they do not go past that threshold. I wish I lent in your state i would love to take you.

Jun 24th 2012
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Jedd Nabonsal (jeddnabonsal)
#451 ranked lender in California - 27 contributions

I believe the minumun time required is 3 or 4 years after the bankrupcy discharge date. This is when you would be eligible for bank loans, and that is why you have been turned down now. Banks don't make loans to guys in Bankrupcy.One issue with bankrupcy is the re-establishment of new and good credit. New credit accounts such as credit cards need to be opened after the bankrupcy discharge date and those accounts must always be paid on time. If it has been over 3 years since the discharge date and you have re-established your credit since the discharge date, you will be eligible for "A" paper mortgage financing again. It doesn't sound like HARP 2.0 will work out for you if you are in Chapter 13. I have never heard of a bank making mortgage loans to guys who are currently in Bankrupcy. Time will pass and you want to re build your credit once this is discharged as I mentioned. Jedd Nabonsal Mortgage Broker Los Angeles Ca Pinnacle Bancorp Cell 310 433 1703 jeddnabonsal@gmail.com

Jun 24th 2012
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Dan Eveland (daneveland)
#23 ranked lender in Minnesota - 14 contributions

We are a lender that will allow any LTV on Investment properties locally. I'd be happy to answer some questions for you!Dan EvelandWaterstone Mortgage763-746-9919www.whatisyouraddress.com

Jun 25th 2012
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#0 ranked lender in

Hello, This is Mr Gibson Moore of the Ocean finance with FSA Registration Number 310136,Consumer Credit License No 0255609 Company Registration Number 2316399. I am here to offer you a loan of your choice, and at a lowpercent interest rate, as low as 4%. oceanfinance1@pacific-ocean.comI expect your mail as soon as possible.Gibson Mooreocean Finance

Jun 25th 2012
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Bert Carpenter (BertCarpenter)
#39 ranked lender in Arizona - 1,731 contributions

You didn't state when your 13 was discharged, and that may have something to do with all the "Nos" you are receiving. Work with a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. There are investors out there that will consider you, DEPENDING on when the 13 was discharged and how you performed in your payments to the trustee. Keep in mind that there is no automatic approval for a borrower under HARP, and your issue may not be the BK at all. I have a deal where the borrower has good credit (no lates, collections or charge offs), but not great scores (708 mid score), but still can't get the deal to be approved even with $100k in liquid assets. Why? DTI right at the top end. Took $10k, paid down some debt, re-scored and boom... approval. Work with a local Mortgage Banker/Broker to see what "Junk" may still be on your credit report. Maybe simply cleaning it up will make all the difference in the world. Good luck.~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jun 25th 2012
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Gary H (Mod.Specialist)
#77 ranked lender in New York - 25 contributions

What are you looking to do? To purchase a new home, you not going to get to far. If your looking to lower your payment , staying with the same lender, your may qualify. What needs to happen - prove your mortgage, insurance and taxes payment combined needs to be higher than 31% of your monthly gross income. Next is getting a letter from your bankruptcy trustee, indicating your intentions. Most BK trustees I have dealt with are cool with the idea of lowering your payment, that assures them receiving your payments. I do 3 or 4 BK modifications a month.

Jun 26th 2012
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Hi everyone, thanks for the continued support. My bankruptcy is NOT yet discharged. I still have about 30 payments to go. My DTI is good since the BK. I have almost no other debt besides my mortgage payment. My income is over $150k so the BK plan payment and mortgage, taxes and insurance...total debt is about 34% of my income. My mortgage company is FALSE reporting to the three credit bureaus that my mortgage is included in the bankruptcy and it is absolutely not included. So far my efforts to have that corrected have not been successful. I'm trying to get my attorney to send them a letter, I even wrote the letter and he just has to sign and mail it, but he is very slow to respond.

Jun 26th 2012
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Hi Robyne, Did you ever get any bank to work with you on a refi or HARP?? I am in an identical situation to yours! Still active in Ch 13 & had the issue on the credit reports...

Apr 15th 2013
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Hi Alicia. I didnt find anyone but I was able to prove hardship to my current lender and they are in the process of modifying my loan. Its not the perfect situation but its better than where I was. What I found to be the root of the problem with the refi was that Freddie Mac rukes had not evolved to match the intent of the new HARP guidelines. Freddie Mac simply will not.even consider a refi until any bankruotcy is paid off for two full years. I caled and emailed everyone on the planet including the making home affordable program government office and bottom line was that the existing bankruptcy is a total unmovable roadblock. I sort of gave myself a rest about three months Go from the constant stress but freddie mac might possibly have changed their rules since then. Sorry for all the typo's Im on my phone.

Apr 15th 2013
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 475 contributions

The rule on a Chapter 13 for Fannie and Freddie non-HARP loan is: "Debts are paid back on a monthly scheduled payment plan by client and are eligible 2 years from date of "discharge" or 4 years from date of "dismissal". If there are special considerations on a HARP loan they are NOT specifically addressed on the Fannie or Freddie Selling Guidelines. So if you have been told by someone at Fannie or Freddie differently, I would suggest you take a written response to your lender so they can obtain this same direction directly. Keep in mind that your loan may still not be able to be approved because of other risk factors. For instance, you have a low credit score and there are likely items on your credit report that do not allow the lender to approve you beyond the Chapter 13 bankruptcy. Good Luck.

Apr 12th 2014
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