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Do you have to be underwater/upside down to qualify for HARP?

We have a Freddie Mac 30 year fixed loan that was last refinanced through the now defunct Countrywide and owned currently by Bank of America in Sept. of 2006. The loan has a balance of 298K at 6.5% interest. Zillow has our value at 334K. Additionally, we have an additional 10K balance on 25K line (B of A cut access to the line as soon as property values starting dropping.) Heloc account through Bank of America making our total LTV ratio even worse overall. Do we have to wait for values to plummet even more to take advantage of HARP. Our credit is good and our income is solid/165K per year. by annika_905_579 from Fontana, California. Oct 5th 2011 Reply


Great Question Annika. No you do not have to wait until your value decline further to refinance. A number of my lenders do offer the FreddieMac Mortgage Relief loan program whic your loan would be an ideal candidate. Based on your comments on your income and credit, I believe we can get this loan done for you.Please call me so I can give youe the details of the program. My number is 888-842-7296. I look forward to hearing from you.

Oct 5th 2011
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Your balance of the loan is 298K + 10K for your HLOC = 308K, You don't need HARP program for your situation, You need to refinace by using FHA program with the rate as of 10/05/011 3.75% w/ 30yrs fix, you would be paid $1436.00.- To qualify for HARP program, you need to be late on your payment(it will ruin your credit) you will not qualify to refinance because of your credit history.

Oct 5th 2011
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Oct 5th 2011
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You can call me at 714 - 306- 6148 Johnny Newgen, I have all the option that fit into your need

Oct 5th 2011
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Dan Paladin (dpaladin)
#1 ranked lender in California - 607 contributions

There is a program that may work for you...for complete details..contact me at 877-369-4319 to discuss your specific scenario..Regards

Oct 5th 2011
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Sunny Singh (916Mortgage)
#350 ranked lender in California - 18 contributions

No, you do not have to be underwater. The websites make it sound more complicated/fancier than it really is. Simply put, if your home is owned by Fannie or Freddie and you acquired the loans prior to 06/01/2009, then you qualify for the HARP program. With your specific situation, I would recommend paying off the $10k Heloc/2nd lien (If you can) through escrow at time of close. This makes it easier to close the loan, plus there will be less hits/adjustments to your interest rate. The alternative is to subordinate the 2nd/Heloc, which isnt that hard but its a pain. However BOFA has made it simpler to subordinate and usually responds within 12 days or less, I just got one back in 5 business days. They also waive the $250 fee for subordinating. Subordinating = Not paying off (Just in case)These HARP loans ask for such limited findings when underwriting, if structured right all you may need is 1 recent paystub.Call me if you would like to discuss, (925) 705-8418 (FYI-I can only do loans in CA) I am sure there is someone who has answered that can help you as well.Happy fundings and good luck!

Oct 5th 2011
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Robert Hanson (rhanson)
#39 ranked lender in Maryland - 646 contributions

You need to look at 3 options:1) HARP refinance2) Regular conventional refinance3) FHA refinanceThe option that will be best for you in terms of interest rate and long term savings will depend on several factors not addressed here, most notably: exact credit score, exact ratio of income to total outstanding monthly obligations, and actual appraised value.There is no way to know for sure which will be most beneficial until all of those are determined. You need someone that has access to all three options and can lay the contingencies out for you.If you want assistance with that, or more details, feel free to call me at 240-752-7549 or email me at rhanson@westtownsb.com.Good Luck!

Oct 6th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

You do not have to be behind on your payment to qualify for HARP... and even if you have equity, you can still refinance. I would recommend using FMM Relief program. If you don't have mortgage insurance now, you will not need to pay it on the new loan either. If you go FHA refinance, you will pay upfront and monthly... (Bad Advise)... plus, I've seen rates lower on the FMMR program lower than conventional refinance... WilliamAcres.com

Oct 6th 2011
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