Obama Refinance Plan

Bills.com Team
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By

Highlights


  • Obama refinance plan helps more borrowers qualify for low-interest loans.
  • Mortgage borrowers who do not have Fannie or Freddie loans will be eligible.
  • The Obama Refinance Plan requires Congressional approval to become law.
4.0
/5.0
(22 Votes)

Obama Refinance Plan Proposes Mortgage Help to Millions of Borrowers

Editor’s Note: As of late 2012, the Obama Refinance Plan has not been passed into law. Various proposals have been made, in Congress and by the President to expand the refinance opportunities for borrowers who’ve been shut out of the market so far. Read the Bills.com resources HARP 3 and #myrefi, to learn more.

The new Obama refinance plan is designed to assist responsible homeowners who have been unable to refinance at today’s historically low interest rates. This mass refinance plan is intended to help millions of Americans benefit from low interest rates and consequently get lower monthly payments.

The Obama refinance plan will help qualifying borrowers save hundreds of dollars a month and stimulate the struggling housing market and the economy in general.

Following up on plans the President hinted at in his State of the Union address, as well as the HARP 2.0 mortgage program announced late in 2011 and the expansion of the HAMP program announced in January 2012, the new Obama refinance plan is a “broad based refinancing to help responsible borrowers save an average of $3,000 per year.” You meet Obama’s definition of a “responsible borrower” if you are:

  • Current on your mortgage payments for the past six months, with only one mortgage late in the past 12 months
  • Have a minimum credit score of 580, which is far lower than required for a conventional loan

Quick tip

Contact one of Bills.com’s pre-screened mortgage providers for a free, no-hassle mortgage quote.

Other requirements include:

  • Restricting loans to borrowers refinancing their primary residence
  • Having a loan that fits with FHA loan limits for the county. FHA maximum loan limits range from $271,050 to $729,750, depending on where your home is located.

Not Just Fannie or Freddie

The new Obama Refinance Federal plan expands the pool of eligible borrowers to loans that are not currently backed by the government or by either Fannie Mae or Freddie Mac. The HARP mortgage program is restricted to loans backed by Fannie or Freddie, so the new Obama refinance program will reach millions of borrowers who have been shut out of the market.

Streamlined Process

In addition to offering the chance to refinance at low rates, the new Obama refinance program aims to streamline the mortgage process for qualifying borrowers. The goal is to make it easier and cheaper for borrowers and lenders to refinance. Key provisions include:

  • No appraisal required
  • No tax returns required
  • Only verification of employment for employed borrowers

Build Equity and Have Your Closing Costs Paid For

To encourage borrowers to use the savings that refinancing will bring to build equity, the new Obama refinance plan will pay your closing costs on the loan, resulting in zero closing costs, if you refinance into a loan with a term no longer than 20 years and "with monthly payments roughly equal to those" on your current loan. President Obama estimates that this provision will save an average of “about $3,000 per homeowner.”

Financial Institutions Pay the Costs

President Obama estimates that the costs of the Obama refinancing plan will range between $5 billion and $10 billion. The costs will be covered from the newly proposed Financial Crisis Responsibility Fee that is charged to the largest financial institutions in the country, without increasing the Federal deficit by even “a dime.”

Sticking Points

The Obama refinance plan can’t be imposed by presidential order. To become law, Congress must pass the President’s proposals. President Obama aims to build grass-roots support for his proposals and put pressure on Congress to offer relief to homeowners. Given the divisions that exist in Washington, the Obama refinance plan faces plenty of opposition from Congress. The plan will also likely face opposition from lenders and the financial institutions being asked to pay for it.

Bills.com will continue to report this story as more facts emerge, so return here for updates.

4.0
/5.0
(22 Votes)

68 Comments

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  • 35x35
    Feb, 2013
    Anna
    Finally!!!! I am a real estate appraiser and have been in the business for over 10 years. I, too, bought my house at the peak of the market and we are now underwater in our mortgage. We have faithfully paid our mortgage on time for 7 years, even though it went up $300 per month. I cannot tell you how important it is, not just for my family's sake, but for many many others for this bill to go into place. How can we petition congress to act? Are there already petitions available thru Facebook, email, or twitter that we can start circulating????? Please let me know!!!
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      A first place to start is to contact your federal representatives, your congressperson and senators. Let them know what you want them to do.

      The White House Web site has an area where you can show your support for President Obama's #myrefi proposal.
      0 Votes

    • 35x35
      Feb, 2013
      Patrick
      This obviously has no chance to pass. When Obama mentioned it during his state of the union speech not one Republican rose to their feet while the Democrats were all in favor. I e-mailed every Republican congressman regarding this act and no one responded. Our government is responsible for the banking mess, yet they won't help the people they hurt.
      0 Votes

  • 35x35
    Dec, 2012
    Patrick
    It sounds like the financial cliff proposal Obama is trying to get signed off on includes a 50 billion stimulus that has a significant refinancing package in it. Has anyone heard anything about this? Also I was told by my mortgage lender any package introduced will not cover jumbo loans. I have followed this closely and I have not seen any evidence of that. The harp 3 is suppose to cover FHA loan amounts which are upto 750k. Anyone know anything about this also. I need something to happen soon, our lender told us we need to bring 125k to the table to refinance.
    0 Votes

    • 35x35
      Dec, 2012
      Bill
      Patrick, there are lots of rumors as to what may happen, but I have not seen a specific refinancing package proposal that is tied to the fiscal cliff negotiations. There are various proposals such as the Boxer-Menendez Bill that may make the HARP 2 mortgage available to more borrowers.

      The HARP 2 program allows a borrower up to the conforming loan limits. The new regulations allow for the limits to be set based on the time the loan was originated. This includes the higher limits set for the High Cost Areas during the period between 7/1/2007 and 9/30/2001. Check with your lender to see if your loan qualifies for the HARP 2 mortgage program and if you qualify for a larger sum.
      0 Votes

  • 35x35
    Nov, 2012
    Amber
    Any update to this since Obama was re elected? I have a 30 yr conventional at 6 %. Never been late or behind but, I am not backed by Fannie or Freddie. I am 80K underwater. I have perfect credit but can't get a refi. Suntrust won't modify me because I have never been late and haven't lost any income. I can rent a house for cheaper than what I am paying. I can't take any equity out to do repairs. I really hope this HARP 3.0 will pass. I feel like just walking away from my home!!!!!!!!
    0 Votes

    • 35x35
      Nov, 2012
      Bill
      There is nothing new, yet, regarding HARP 3.0. Your best bet is to keep your eyes on the news, to see what develops, and to continue making your mortgage payment on time (as any program that is released will likely require a solid mortgage payment history).

      It could be worth considering a strategic default, if your current loan is a non-recourse loan and the damage to your credit would be worth taking in exchange for getting out from underneath the underwater property. If your state's anti-deficiency laws permit the lender to come after you for a deficienct balance, a strategic default is far less attractive an option.
      0 Votes

    • 35x35
      Nov, 2012
      Amber
      I live in Georgia. Am I in a non-recourse state? What is a strategic default? Is it better to do a deed-in-lieu? Is that less damaging to your credit?
      0 Votes

    • 35x35
      Nov, 2012
      Bill
      I have five reading assignments for you that will answer your questions:

      Please ask any follow-up questions you may have on the most appropriate page.

      0 Votes

  • 35x35
    Nov, 2012
    Patrick
    Any word on what might be happening with the new refinance legislation now the election is over? We have tried for a year now with Bank of America to refinance under the mortgage settlement act. They might be the most awful company to deal with in the known universe.
    1 Votes

    • 35x35
      Nov, 2012
      Bill
      No news, so far. It appears that the initial focus, post-election, is going to be on the fiscal cliff. However, you should keep your eyes on the news. Also, continue to check back at Bills.com, as we will certainly report on any expansion in the mortgage loan programs.
      0 Votes

  • 35x35
    Sep, 2012
    Patrick
    Any talk of this third stimulus that was enacted today of helping out the underwater homeowners?
    0 Votes

    • 35x35
      Sep, 2012
      Bill
      The main point seems to be that the stimulus is a further attempt by the Fed to bolster the US economy. The third stimulus aims to lower interest rates, encourage spending and investment. The hope is that lower mortgage rates may increase the value of homes and increase refinancing.

      The stimulus plan has no direct impact on underwater borrowers. Indirectly, if the economy improves and home prices rise, then people with an underwater equity position will see their situation also improve and have increased opportunities to refinance.

      Separately, there may be additional legislation that is aimed at borrowers whose mortgages are not backed by Fannie Mae, Freddie Mac, the FHA, or the VA.
      2 Votes

  • 35x35
    Aug, 2012
    Michael
    I am totally frustrated with our banking system. I have been trying to refi for several years only to hear, "Sorry, we can't help, but look here or talk to this bank," only to be turned down at every turn. I pay all my bills on time and have a good credit rating. Unfortunately, my mortgage is not backed by either Fannie or Freddie. I am tired of being told no just because I do what I am supposed to do. I pay almost 2500.00 each month for my house and equity loan. I am at 100% LTV or a bit higher. How is someone like me supposed to refi? These banks are full of themselves.
    1 Votes

    • 35x35
      Aug, 2012
      Bill
      Right now, there are no programs that can help you, though there is talk of an expanded HARP 3.0 program that would be available to non-Freddie & Fannie borrowers.
      3 Votes

  • 35x35
    Aug, 2012
    Ann
    I applied for refinance under HARP 2.0 two months ago and was denied due to bankruptcy discharged in July 2010. My home was not reaffirmed in banckruptcy, but I plan on keeping the home and I have continued to make payments on time. However, the mortgage is an ARM and altho currently it's at a low interest rate, I would like to get a fixed rate because it may increase in the future. Will the new HARP 3 or what are my options for refinancing for a conventional loan? My credit score is obviously bad due to the bankruptcy.
    0 Votes

    • 35x35
      Aug, 2012
      Bill
      There are lots of plans being offered, both by the President and by members of Congress, but nothing is law yet. I have not seen specific proposals that address your concern, so far, but you should keep your eyes on the news, to monitor developments.

      HARP 2.0 technically removed the BK waiting period, but only if you work with your current lender through a manually underwritten loan. Try applying with your current lender and requesting a manual underwritten file.
      0 Votes

  • 35x35
    Aug, 2012
    Patrick
    I read an article from August 8th that Mitt Rommeys advisor strongly supports Obamas refinance plan and it is going to vote in Sept. Anyone have any other information on this?
    0 Votes

    • 35x35
      Aug, 2012
      Bill
      The articles I read stated that Glenn Hubbard, the dean of Columbia Business School and Romney adviser, does support expanding refinancing of government backed loans, but only supports some of the Obama Refinance Plan. It is not clear, from what I've read, if/when any proposals will come to a vote.
      0 Votes

  • 35x35
    Jul, 2012
    Betty
    When will this get into Congress? We are $90k underwater and not Fannie Mae nor FHA. We each have 800+ credit scores and there is not one bank or program that will even talk to us. Wells Fargo is the worst servicer too....we need help
    1 Votes

    • 35x35
      Jul, 2012
      Bill
      Only time will tell if action is forthcoming. There is pressure to do something, but, as we know, getting different sides to reach a political compromise is not simple. All you can do is keep following the news. Perhaps there will be some interesting news that comes out of US Housing Secretary Shaun Donovan's online discussion today, July 12th, at 3:15 PM EDT. He is set to discuss current and proposed refinancing options. You can view the discussion at the White House Web site.
      1 Votes

  • 35x35
    Jun, 2012
    Melanie
    What about those of us that own a rental property that is underwater? I have a negative income of $800 a month and Wells Fargo is the current mortgage holder. We have never had a late payment on anything, my husband is a veteran, but Wells won't help us. I would do a short sale but I don't want the blow on our credit. Do I have any options?
    0 Votes

    • 35x35
      Jun, 2012
      Bill
      Rental properties are eligible for HARP loans. If your rental property mortgage is backed by either Fannie Mae or Freddie Mac, then you may be able to do a HARP loan. You can go online to see if you have a Fannie Mae or Freddie Mac loan.

      However, even if you can lower your interest rate and reduce your monthly payment with a HARP loan, you may not improve your cash-flow enough to cover your $800 monthly shortfall. If you can't right your ship by refinancing and adjusting your other living expenses, a short sale may be a reasonable option. I understand your desire to maintain good credit, but if you aren't able to pay your bills, your credit will suffer, short sale or not. If your primary residence situation is stable, then the negative impact on your credit from the short sale is less important. It may also be worthwhile to consult with a bankruptcy attorney, to see if that option would provide the best solution available.
      0 Votes

  • 35x35
    Jun, 2012
    Dan
    Seems like I'm in the same boat as a lot of other people. I just tried to refi and was denied because I owe just over what the house is worth. (House value has dropped 10k since an appraisal in 2010 despite numerous improvements.) I'm stuck at 5.85% which I understand isn't horrible but I could be saving quite a bit at a lower than 4% rate. Not sure if this is allowed here or if it is even helpful, but I created a petition to tell Congress to pass this so we can get some relief!
    2 Votes

  • 35x35
    Jun, 2012
    Luis
    I received a modification in June of 2011 with my current lender (BOA) under the HAMP program. Will I be able to apply for another modification under the HAMP 2.0 program with my current lender or another lender? Any advice would be appreciated. Thank you!
    0 Votes

    • 35x35
      Jun, 2012
      Bill
      The HAMP program is available through your current mortgage servicer. According to the Making Home Affordable Web site, the HAMP guidelines were updated on June 1, 2012 to include borrowers with a previous HAMP modification, but:
      • "Homeowners who previously received a HAMP trial period plan, but defaulted in their trial payments.
      • Homeowners who previously received a HAMP permanent modification, but defaulted in their payments, therefore losing good standing."

      I recommend that you speak to your lender about a new HAMP modification.

      0 Votes

  • 35x35
    May, 2012
    alice
    no late payments,wells fargo does not offer the harp choiceoBOA has my loan but wells fargo is the investor.I want to keep my home,I'am 70 thousand dollars under,house worth 60. Interest rate 6.750 WHAT TO DO?
    0 Votes

    • 35x35
      May, 2012
      Bill
      Even if new legislation is passed, it is most likely that Wells Fargo will not want to refinance the loan. Your choices are:
      1. Keep making the payments on time
      2. Make larger payments to pay off your loan quicker
      3. Speak to you lender about modifying the payment schedule (if you are in a hardship)
      4. Negotiate a short sale and payment schedule for a deficiency balance
      5. Stop paying and wait for a foreclosure.

      Since you are so far underwater, you will have a large deficiency balance should you decide to stop paying. I recommend that you consult with an attorney to determine if your state has a non-recourse clause that applies to your loan.

      0 Votes

  • 35x35
    May, 2012
    Tyra
    I just heard about the HARP program while in BOA on work business yesterday and the tellers insisted that it is available so I called when I got off work, as my loan is with BOA, and after only about 30 minutes on the phone, I am glad to say that I was able to get the refi and a savings of $300 a month. Remember, that the New Guidelines just rolled out and you may get someone who is not sure about the details, so keep asking until you get the right person on the line. Good Luck to All.
    0 Votes

  • 35x35
    May, 2012
    Patrick
    When will this get into Congress? We are $85k underwater and not Fannie Mae nor FHA. We each have 800+ credit scores and there is not one bank or program that will even talk to us.
    4 Votes

    • 35x35
      May, 2012
      Bill
      Patrick, only time will tell. There is a lot of talk about extending loans at today's low rates to borrowers in your position. So far, however, there has been no action. All you can do is to keep your eyes and ears open. If there are any developments, Bills.com will report on them.
      2 Votes

  • 35x35
    May, 2012
    Sara
    Has the bill with the refi loans that are not Fannie or Freddie even went to Congress yet? I heard when Obama spoke of this but have not heard one thing about it since... I do not have a Freddie or Fannie loan and am $150k underwater and need to refi.. Hoping this passes soon!
    1 Votes

    • 35x35
      May, 2012
      Bill
      No laws have been proposed, yet. Congress is discussing a few different proposals, but nothing has moved forward.
      1 Votes

  • 35x35
    May, 2012
    karen
    I have applied twice for the harp 2.0 program one company said the value 125% was to high the other company shore almost went threw but had to have a credit score 760 or higher very disappointed in this program were under water like everybody else thinking about a short sale we would like to stay in our house but nobody wants to help. we could go buy a house cheaper than what we owe on our current house any advice you could give would be appreciated thank you
    0 Votes

    • 35x35
      May, 2012
      Bill
      I recommend you continue to shop around for a HARP loan. Different lenders apply different qualification rules. Contact one of the lenders in the Bills.com lending network for a free HARP mortgage quote to see what you're offered.

      Separately, whether it makes more sense to do a short sale (or walk away from the property in a strategic default) depends on a few factors, including:
      1. Whether your loan is a recourse or non-recourse loan.
      2. Your state's anti-deficiency laws.
      3. How far underwater you are.
      4. The cost differential between your mortgage payment (even a new, lower HARP mortgage payment) and what you would pay if you were to buy another house or rent a comparable home
      5. Whether you can qualify for a home loan on a new house while you're in your current home. If you do a short sale or walk away, the impact on your credit score could preclude a home purchase for a while.

      If you want to buy another home, doing it while in your current home may be better, if it is achievable.

      0 Votes

  • 35x35
    Apr, 2012
    Paulie
    Any updates on the proposal?
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      Although there have been changes in the HAMP guidelines and some changes in the FHA guidelines, no breakthrough has been made on the Obama refinance plan. Bills.com continues to monitor the situation and will post any new updates on this page.
      0 Votes

  • 35x35
    Apr, 2012
    Lynn
    How will this new refinance program address a second on the property to be refinanced?
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      Who knows? This is merely a proposal to Congress, and we will see how the House and Senate respond to the President's idea. Contact your Congressional representatives to know this issue matters to you.

      We will continue to follow this proposal, and will report more as this gets closer to becoming a law.
      1 Votes

  • 35x35
    Mar, 2012
    beth
    I received a HARP loan on 4/12/2010. FANNIE MAEMae Refina nced at 5.675%. Since then, MY property value has decreased another $40,000 on $252,000 owed. Now the appraisal comes in at $210,000. Is there any relief for me under this new program? Or any others? Please help!
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      There are currently no refinance options that are available, as the HARP program does not allow for refinancing a previous HARP loan. All of the new refinance programs have deal with a June 1 2009 cutoff date. If you cannot afford your payments due to a hardship, then a loan modification is a possible solution. Read the Bills.com article about the new HAMP guidelines.
      0 Votes

  • 35x35
    Mar, 2012
    greg
    I am in this situation. What is the status of this going into law? How long do you think it will take? Thank you in advance for the reply. Greg
    1 Votes

    • 35x35
      Mar, 2012
      Bill
      I am not sure which situation you are referring to. The Obama refinance plan deals with a number of issues. The idea of mass refinancing non-Freddie Mac or Fannie Mae loans has yet to be implemented. It is impossible to predict if and when this Obama proposal will go into effect. Bills.com will continue to report this story as more facts emerge, so return here for updates.
      2 Votes

  • 35x35
    Mar, 2012
    Michael
    Sign me up! I'm ready to sign up for this program. The examples describe my situation exactly. Are there any bills or legislation in Congress to follow? Maybe we can encourage our Congress reps on this. It all sounds great, but after many weak or ineffective attempts on this, I'm starting to lose hope.
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      Contacting your Congressperson is a great idea, if you want to see any action. If enough people were for this program and each one pressured his or her representative, Congress could be compelled to act.
      0 Votes

  • 35x35
    Mar, 2012
    John
    I am in the military and have a loan that is held by Fannie Mae, however we refinaced in the begining of 2010, from our original loan in 2008. I meet all of the requirements except one. I noticed that one of the stipulations is that the loan had to be owned prior to June 1, 2009. Do you know what basis was used to determine the cut off date? Is there a "waiver" or way to get around the Jun 1 2009 date?
    1 Votes

    • 35x35
      Mar, 2012
      Bill
      The 2009 cut-off date was never explained. I realize "I don't know," is an unsatisfactory answer, but until Fannie Mae, Freddie Mac, or the Federal Housing Finance Agency make a statement explaining why that date was chosen, we simply do not know the answer.

      We know of no waivers granted regarding that date. Readers, if you do please share them here.
      0 Votes

  • 35x35
    Mar, 2012
    Michele
    When is this going to take affect so we can move forward !!
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      The President does not have the power to put his own plan in place. The plan requires Congressional action to become law.

      On March 6th, President Obama announced some changes that do not need Congress' approval that will help certain borrowers.

      Help for FHA borrowers was offered, with a chance for them to save money by doing an FHA streamline refinance at today's low rates with reduced mortgage insurance premiums. The streamline refinance will not require income verification, and no appraisal is required, which is huge for underwater borrowers. In order to qualify for the savings:
      • You have to be current on your mortgage, with no late payments for the past six months and only two for the past 12 months.
      • Your FHA loan had to be guaranteed by the FHA prior to June 1, 2009.
      • Your new streamlined refinance has to be finalized on or after June 11th, 2012.
      0 Votes

    • 35x35
      Mar, 2012
      Dan
      When does the part of the program that does not require congressional approval come into effect
      0 Votes

    • 35x35
      Mar, 2012
      dasn
      When does the part of the plan that does not require congressional approval come into effect
      0 Votes

    • 35x35
      Mar, 2012
      Bill
      The premium reductions for FHA streamline refinancing loans, where the original loan was guaranteed by the FHA before June 2009, goes into effect June 11th.
      0 Votes

  • 35x35
    Mar, 2012
    kathy
    When is the Obama Refinance Plan going to be avaiable? I'm ready
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      The plan will become law if and when Congress acts on the President's proposal and creates and approves a bill the President signs into law. Bills.com will report on the plan as news occurs.
      0 Votes

    • 35x35
      Mar, 2012
      kathy
      Will this help people with an A6 mortgage in Texas?
      0 Votes

    • 35x35
      Mar, 2012
      Bill
      I saw nothing in the President's proposed plan, which is not law, or the changes he announced on March 6th that are going to take effect, that address Texas A6 loans.

      For readers not familiar with the term, Texas A6 laws relate to the cash-out loan a borrower takes out borrowing from the home's equity. In Texas, once a cash out, always a cash out. That means if a borrower wants to refinance again, he or she must adhere to the Texas A6 cash out rules which require future refinances to include a cash-out component in the deal.
      0 Votes

  • 35x35
    Mar, 2012
    nicole
    I have multiple investment properties, and i have 2 properties are going on shortsale. Can I still refinace other properties have loan with Fannie Mae under Halp version 2 prgram? I have no delinquency on that property,and my credit score 516 only.
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      It is possible that you can refinance a Fannie Mae loan, if it fulfills all the HARP requirements. However, the banks may be stricter in their underwriting requirements than the HARP guidelines. This may include looking at your credit score or late payments on other loans. If you are going to a different lender than your current one, then you will need to qualify based on your DTI ratio, which must be no higher than 45%.
      0 Votes

  • 35x35
    Feb, 2012
    Sam
    On the same boat here as well. I live in florida and have GMAC as a lender with Freddie Mac. I called GMAC to refinance with HARP and found that I have LPMI and so they said that said that the application will be denied by Freddie Mac since I have LPMI. I have read lots of articles on the internet and found the Freddie Mac has no such restrictions, it is the lenders who are restricting it. Does anyone know if the new Obama Plan going to help LPMI mortgage holders? This is really frustrating. Any suggestions... Thanks
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      One thing you can try is to speak with other lenders come mid-March. You may encounter the same problem. As you said, LPMI could still prove to be a barrier, even though it should not be.

      I recommend that you speak with GMAC to find out which company they are using for your mortgage insurance. You can call the mortgage insurance provider directly to confirm that, from their perspective, a HARP 2.0 refinance is not a problem.

      Please read the Bills.com article about mortgage insurance and HARP.

      The Obama refinance plan is only the President's proposal and won't become law unless Congress passes it. From what I have read of President Obama's refinance plan, there were no specific points regarding mortgage insurance.
      0 Votes

  • 35x35
    Feb, 2012
    Barbara
    Under water here too... the state that our country's housing market is in so sad. I have been seeking for a solution myself and am so dissapointed that I am virtually stuck with my mortgage and have very limited options to refinance. I can accept owing more $ on my home than what it is currently worth in the market. I have a 80/20 loan. I can adjust the rate on the 80% via HARP but can't do a damn thing to the 2nd. And then in order to at least subordinate the 2nd I need to pay for a appraisal in addition to a fee to the 2nd lender. I would appreciate some reform around 2nd mortgages.
    0 Votes

  • 35x35
    Feb, 2012
    paul
    I just applied through Wells Fargo using the guidelines under the HARP II program. I was told there would be a $255 appraisal fee. I mentioned that under the HARP II guidelines, there was no appraisal. I was told that was true in most cases, but that Freddie Mac was the one requiring the $255 appraisal fee on my home loan. Is this true? How do I find out why I am required to pay for this appraisal fee? Thanks.
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      Under HARP 2.0, in most cases a computer program called automated valuation model (AVM) replaces a human inspection and appraisal. However, in some cases some lenders require an appraisal to ensure the house is in good physical condition. We are not aware Freddie Mac requires appraisals in all cases. Readers? Please share your experiences with Freddie Mac loans and appraisals on the Bills.com HARP 2.0 Mortgage page.
      0 Votes

  • 35x35
    Feb, 2012
    Richard
    will this new program help me refinance a second mortgage? i already in process of refi first mortgage.
    1 Votes

    • 35x35
      Feb, 2012
      Bill
      At this point, who knows? President Obama's Refinance plan and proposal to Congress is just that — a proposal. We will see how Congress answers your question if it is willing to take on this issue.
      0 Votes

  • 35x35
    Feb, 2012
    Kim
    When will there be a decision on this program? I would love to refinance my loan. I took out a high-interest loan that I planned on refinancing after improving my credit, but then the value plummeted. Because it is not a Fannie or Freddie loan, I haven't had any good options. The Obama refinance plan would really help me. I am struggling to make my payment now and a lower monthly mortgage payment would be a very big relief.
    3 Votes

    • 35x35
      Feb, 2012
      Bill
      Kim, there are many people in the same boat as you, which is why President Obama's refinance plan was offered. Still, as the plan requires Congress to approve it, and Congress seems incapable of agreeing on any solutions to big problems, it appears to be an uphill battle.
      1 Votes

    • 35x35
      Feb, 2012
      Margaret
      I just wanted to add to the discussion that, without some type of ptogtam like this, for those of us who pay our mortgage, and the economy has put upside down, it is no wonder there are so many empty & foreclosed homes. This is so sad to see in all neighborhoods. I am in the same shape of being upside down, can get approved for buying a new home, but cannot afford to lose on the sale of my home, nor qualify for a refinance. It is ridiculous. If Congress can't agree on a program like this, we will continue to see this country in distress. Many folks have had very good reasons for needing to refinance years ago, @ higher rates, pay the mortgage and now cannot refinance. What good is our vote, if, as Americans, we cannot find assistance, but in the blink of an eye, we take care of every other country in the world needing our help. Hmmmmm....not a negative person, just very discouraged in the situation for a few years now. I am not looking for a hand-out and trying to retire.
      6 Votes