I get a lot of emails from people who are looking for some help with their mortgage needs from the articles I write here and on my mortgage blog. I just heard back from a reader today who I’ve been having an email dialogue with since March. He contacted me after reading a post I had written with the subject line: “Need Your Help…Making Home Affordable Program”. I asked him today if I could share the emails so our readers can see what it has been like for this homeowner trying to get a HARP refi.
March 8, 2009
I read your post and I’m very excited. I am a novice when it comes to mortgage so please help me understand this. I bought my house 4 years ago and the values have dropped. I have two mortgages 80% and 20% with the same lender. I am currently paying around 42% of my gross income.
My understanding is that only the first mortgage will be lowered down? Both of my mortgages are with the same lender [very large bank]. I will call them on Monday but need to hear from you as I trust your opinion more. What will happen to my other 20% loan, it’s at 7%. Please help….
I provide the toll free number and contact information for his bank. With two mortgages at 100% or higher loan to value, it’s pretty challenging to help anyone. Second mortgages have become more difficult than ever–even with short sale negotiations. I suggested that he contact his bank/mortgage servicer since they have both mortgages with hopes they would maybe modify his loan if it did not qualify for the refi.
March 9, 2009
Thank you for your support, it means a lot to me. I was on hold with the bank for no avail. I will try again tomorrow. I guess they’re receiving too many calls these days.
I replied: I’m sure they’re inundated…they did a lot of second mortgage/home equity loans up to 100% loan-to-value.
March 10, 2009
I was able to get hold of them this morning at 5:00 a.m. (they open at 8 EST). The good news is that my first mortgage is with Fannie Mae…they would not discuss options with me until I fill out their paperwork. Thanks for all of your help.
I told him I was glad and asked him to keep me informed of his progress. He immediately replied:
Sure, I will keep you posted. I will be submitting my application by this Friday 🙂
I didn’t hear from him again until today.
Hi. I hope everything is going well for you. I just wanted to update you regarding my application. Well, the bank denied my application citing that my monthly payments on my first, including insurance, property taxes and HOA is not 37% of my monthly gross income. When I argued that the program says 31%, their rebuttal is that they us a sliding scale based on income. I’m not sure if this is what the program guidelines say or is it just something the bank came up with on their own. I just wanted to thank you for your help through this effort.
There are a lot of stats thrown to the press about how great HARP is and how many people have been helped. There are many who have not been so lucky and have had to go through hoops to find out.
Has any home owner had success dealing with their second mortgage with a Home Affordable refinance or loan mod program?