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Refi with HARP immediately after Chapter 13 Bankruptcy Discharge

Hi, i wanted to see if anyone knows of any banks that will Refi with HARP immediately after Chapter 13 Discharge. Our mortgage is at 6.375%, we owe $237,000 and house is worth about $240,000. middle credit rating last month was 663. We have re-established credit with some secured credit cards and 1 unsecrued whicht had the limit increased from $800 to $3300 last month, so im guessing our score may go up a little bit. we would love to lower our interest rate so we can save for the future in case any issues arise. We have been trying to use these home afforadable programs since they came out, and would not have had to file Bankruptcy if we had recieved help the first time. any help would be great! PS we are in NJ. thanks by kimbra_246_613 from millville, New Jersey. Nov 13th 2012 Reply


William J Acres (William_Acres)
#0 ranked lender in Arizona - 8,727 contributions

HARP does not lend... they issue guidelines to be able to securitize mortgages once they are complete.. The lenders who lend will usually have their own set of rules above and beyond what HARP or Fannie Mae/Freddie Mac require.. Although FNMA says 2 years, HARP rules change to no waiting period, you still need a bank that will allow it.. And we don't have one lender out of 50 that we deal with that will... so maybe in the future.. But not now.. 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

Nov 13th 2012
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Phil Dumouchel (PhilDu)
#0 ranked lender in South Carolina - 2,247 contributions

I don't believe you can do a HARP refinance for 2 years after the Discharge. However, with that scenario you might be able to switch to a FHA loan which would have "pmi" but the rate would be low enough that you should see significant savings in your monthly payment. The appraisal would need to be high enough so that the new base loan amount would not be more than 96.5% of the value. Especially having just come out of Ch 13 having reserves, minimum 2 months of the payment in the bank, would be a huge help. If you like I can work with you .

Nov 13th 2012
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Joe Cafiero (JCafiero)
#0 ranked lender in Pennsylvania - 17 contributions

KImbra..I would be happy to look into this further for you. Please contact me driectly so that I can get some more details from you.Joe CafieroGuaranteed Rateemail: joe.cafiero@guaranteedrate.comcell:914 456-0677NMLS# 65146

Nov 13th 2012
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ok i beleived that HARP is removing the requirement that the borrower (on the new loan) meet the standard waiting period and re-establishment of credit criteria in the Selling Guide following a bankruptcy or foreclosure. I guess we just need to find banks thats service NJ that do not have the over lays for the waiting periods. as for the FHA, we are over the 96.5% value.

Nov 13th 2012
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Phil Dumouchel (PhilDu)
#0 ranked lender in South Carolina - 2,247 contributions

I haven't seen anything firm yet that the waiting period after bankruptcy was being waived. IF that is possible, realistically it is most like that the current servicer on the loan (where you make your payments) is most likely to be flexible if allowed - especially if you should have been granted a refi previously. However, unless the rules are actually relaxed about bk's no lender will be able to help you. If not, perhaps values will start increasing in your area over the coming months and FHA will be an option for you - that would likely save you well over $200/mo in payment. Good luck.

Nov 13th 2012
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joe.cafiero i sent you an email.. and PhilDu, if i get into that 96.5% area i will contact you about the fha loan, thanks

Nov 13th 2012
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Phil Dumouchel (PhilDu)
#0 ranked lender in South Carolina - 2,247 contributions

your best option will be HARP if a lender will work with you. If not, would do everything I could to help make the FHA option work for you.

Nov 13th 2012
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http://www.cga.ct.gov/2012/rpt/2012-R-0023.htmRECENT CHANGESFHFA, Fannie Mae, and Freddie Mac announced a number of changes to HARP on October 24, 2011. These changes include:1. removing the LTV limit of 105% on 15 year loans so that there is no maximum LTV ratio for fixed-rate mortgages of up to 30 years (the LTV remains 105% for (a) fixed-rate loans of 30 to 40 years and (b) adjustable-rate mortgages with initial fixed periods of at least five years and up to 40 year terms);2. changing payment history requirements to those described in the summary above in place of a policy that varied based on whether the borrower's payment was increasing or decreasing (but the new policy requires requalification when there is a payment increase of principal and interest by more than 20%);3. removing requirements that the (a) borrower meet the standard waiting period and re-establishment of credit criteria following a bankruptcy or foreclosure and (b) original loan have met the bankruptcy and foreclosure policies in effect at the time it was originated;

Nov 13th 2012
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Linda Wintersteen (Linda123)
#0 ranked lender in Arizona - 1,256 contributions

there is a possible other way for you to do your loan .. please email me at yourloanpartnerforlife@live.com linda

Nov 13th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

I know you found those HARP changes published but the reality is that HARP is just a government program and they do not lend money, only lenders lend money, and each lender has the aforementioned "overlays" that they will use as their own guidelines. It is definitely a confusing issue for you as the consumer I know but the best advice you will get is to go to a local mortgage broker, not the big banks, and get advice specific to your situation.

Nov 13th 2012
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how would i found a local mortage broker who would work with someone like me? ive never dealt with a broker before

Nov 13th 2012
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also how do i know who is broker and who is a lender?

Nov 13th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

At the top of the page click the "Find a Lender" tab and see who comes up in your area then start calling. Avoid the large banks like BOA and stick with smaller local mortgage professionals. Any bank you call will not be mortgage brokers, they are just application processors at the bank.

Nov 13th 2012
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Phil Dumouchel (PhilDu)
#0 ranked lender in South Carolina - 2,247 contributions

Typically a broker takes your application and will shop it to or place it with other companies that will actually underwrite and approve the loan. A correspondent lender approves the loan directly themselves and then transfers the loan to an investor (typically a larger bank like Wells or Chase, but also some smaller companies too). You can ask when you call if they are a broker or a direct lender, the process is generally very much the same - just a different business model.

Nov 13th 2012
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so with a broker, will they check my credit tons of times for each bank they shop it to?

Nov 13th 2012
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Peter Botros (PeterBotros)
#0 ranked lender in New York - 895 contributions

maybe you can pay down your mortgage a bit.

Nov 13th 2012
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