ALL YOU EVER WANTED TO KNOW ABOUT HARP 2.0 REFINANCING (President Obama’s Refinance Plan for Underwater Mortgages)
1. ALL YOU EVER WANTED TO KNOW ABOUT HARP 2.0
REFINANCING (President Obama’s Refinance Plan for
Underwater Mortgages)
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1. What are the requirements related to existing subordinate financing?
It must be subordinated. In other words put in a second position to the new first mortgage again.
You do so by contacting the current 2nd mortgage holder and obtaining a subordination agreement.
2. Do I need to verify reserves or assets?
Maybe, if the (AUS) findings requires it then yes. If not, the lender may use the numbers stated
without need for verification.
3. How can I meet the minimum benefit requirements?
There are four ways:
1) By experiencing a reduction in the monthly principal and interest payment;
2) By benefiting from a reduction in the interest rate;
3) Through a reduction in the amortization term;
4) By movement to a more stable product. (Like going from a 30 yr fixed to a 20 yr fixed or moving
from an Adjustable Rate Mortgage to a Fixed rate Mortgage)
Therefore, if your payment, interest rate or amortization period is staying the same or increasing,
you must move to a more stable mortgage product. You are not allowed to extend your amortization
period or move from a fixed-rate mortgage to an adjustable-rate mortgage.
4. Can I "buy out" the interest of another borrower that is being removed?
No, as increases to the existing unpaid principal balance are not permitted except for the financing
of closing costs.
5. Do all of the original borrowers on the existing mortgage have to stay on or can Kansas City
Estate Planning Lawyers a borrower be removed?
Borrower(s) can be added along w/current borrower. Borrowers can be removed for any reason.
Remaining borrower must show they have made past 12 months payment from own funds. If reason
is due to death the 12 month history of payments is waived but need to provide evidence of death.
2. The borrower being removed must also be removed from the deed. However, if the the
https://nnepa.com/ borrower being removed is due to death, Fannie Mae does not require that the
deceased borrower be removed from the title. This however is subject to the practices of the lender
through which you are refinancing.
If you are hoping to improve your debt-to income ratio by adding a non-occupant co borrower, keep
in mind that DU does not consider the income or debt of non-occupant co-borrowers (NOBs) when
calculating the total expense ratio. Therefore, it will be your income and debt alone that will be used
to qualify as the owner occupant.
6. If I want to remove a borrower, can I
still use funds from a joint account that I
share with the borrower being removed
to document that I am the one making
payments from my own funds?
No. If a borrower is being removed from
the transaction, you must show that you
have been making payments for 12
months from your own separate
account.
7. Can I still refinance if the existing
mortgage loan was closed in mine and
someone else's name but afterwards
was transferred to an inter vivos
revocable trust?
Yes, with one caveat. That you and the
other original signer on the existing
mortgage are the only parties to the
inter vivos trust and the trust
otherwise meets standard Fannie
Mae/Freddie Mac requirements.
http://mortgageguy.hubpages.com/hub
/ALL-YOU-EVER-WANTED-TO-
KNOW-ABOUT-HARP-
20-President-Obam-
s-Refinance-Plan--
or-Underwater-Mortgages
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