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HARP after Loan Modification is that possible

I have my mortgage with Freddie Mac and Wells Fargo is the lender after some hardship problems more than two years ago they made a Loan Modification only including the payments that were late (3) to the principal without changing anything else (same principal,interest rate and monthly payment). Now I am in a better financial shape, and I would like to refinance using the HARP program and Wells Fargo says it is impossible.... is that correct ? by tykeis_707_974 from Racine, Wisconsin. Apr 25th 2012 Reply


Steven Brand (stevenbrand)
#2 ranked lender in Minnesota - 112 contributions

One of the guidelines to HARP is that your loan was "purchased" by Fannie or Freddie by June 30th 2009. That "modification" is considered a new transaction and therefore doesn't fit into the rules. And/or Joe's comment regarding just being denied due to the MOD.

Apr 25th 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,993 contributions

Contrary to widespread popular belief, HARP refinances are not automatic. I have been unable to find any great documentation for the exact reason, but you are about the 20th person I've been made aware of that is being denied a HARP refinance because of a previous modification.

Apr 25th 2012
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Jason Vondrak (jvondrak)
#217 ranked lender in California - 1,741 contributions

Wells Fargo and other major banks are always much quicker to turn away people, I would suggest trying a broker and having him/her look in to your situation. Usually if it doesn't show on your credit, you should be able to still refinance. It's always much smarter to try a broker first, as they are able to look at various lenders for your situation and usually are more willing to work with you in order to qualify you as they only get paid when they are able to successfully service a loan.To see whether or not we can help you, feel free to fill out an application here: applynow.prospectfgi.com

Apr 25th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Well... that's your first problem.. You don't want to go back to the same lender ... There is nothing in the guidelines that state a Modified Loan will not qualify... that being said, many of them are being turned down.. it might have more to do with the lower credit scores than the modification itself.. in your scenario, it wouldn't be considered a Loan Modification, in the 2012 definition, since they didn't reduce the principal, they didn't lower your rate, and they didn't extend the term... they just added 3 payments to the end... The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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

Apr 25th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,827 contributions

I agree with William... Your first mistake was talking to them instead of working with a Mortgage Banker/Broker. The big banks and national mortgage mills are only looking for the simple "cookie cutter" HARP loans. If you don't fit their mold, too bad. My advice is to contact a local Mortgage Banker/Broker. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Apr 26th 2012
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