Not with Fannie, Freddie, FHA or VA?

Mar 23

Downtown Albuquerque, NM, just after sunset. F...

(Photo credit: Wikipedia)

If your underwater loan is not owned by Freddie Mac, Fannie Me or FHA which has its own streamlined refinancing under a program announced in January, you might be eligible to refinance under provisions of the recent National Mortgage Settlement.

Details of that settlement are being worked out, and eligible borrowers will be notified by the five participating lenders – Wells Fargo, Bank of America, JPMorgan Chase, Ally, and Citibank – at some point.

You are current on your loan, but underwater.
Potential Benefits

Eligible underwater borrowers may have an opportunity to refinance loans at lower
interest rates.

Checklist for Eligibility

You own and occupy your property, and your property has no more than four separate units.

Your mortgage is serviced and owned by one of these banks: Bank of America,

JPMorgan Chase, Citibank, Wells Fargo, and Ally Financial (formerly GMAC). Note
that Fannie Mae and Freddie Mac-owned loans may be eligible for refinance under
a separate program called HARP. To see if your loan is owned by Fannie Mae or
Freddie Mac, go here.

Your mortgage is underwater—i.e., you owe more on the loan than the current value of the house.

You have not made any late mortgage payments within the last 12 months.

You have not been through a bankruptcy or foreclosure in the last 24 months.

Your current interest rate is at least 5.25%

The refinance would reduce your interest rate by ¼ of a percentage point or your monthly payment by at least $100.

Your mortgage is not a manufactured home loan, and it is not insured by the

Federal Housing Administration (FHA) or the Veterans’ Administration (VA).

There are no restrictions on when your mortgage was made – could be any date.

Process

The participating banks (BofA, JPMorgan Chase, Citibank, Wells Fargo and Ally Financial) are required to notify eligible borrowers of the availability of the refinance program, but borrowers may also contact the banks directly for information. The application process has yet to be determined.

There is a full guide book available at http://goo.gl/2FZKM.

5 comments

  1. What lenders are on-board with re-fi’ing Freddie loans using HARP 2? I’m having a helluva time finding a lender to pick up my Freddie loan [serviced by Wells]. My FICO is 780, house is over 125LTV …Flagstar is only doing doing HARP2 on their current loans; and ICON is limiting to 125LTV.

    Can you suggest a lender that will pick up a Freddie loan??

  2. I have a home that is underwater and serviced by Ocwen. It was previously serviced by Saxon Mortgage but sold to Ocwen about 2 years ago. Saxon Mortgage is owned by Chase. Ocwen keeps trying to force me into a hardship refinance – we have a good credit score, no late payments ever and never approached them about a hardship. Any chance of getting this refinanced? No FHA or Freddie/Fannie backing.

  3. have a home that is underwater and serviced by Ocwen. It was previously serviced by Saxon Mortgage but sold to Ocwen about 2 years ago. Saxon Mortgage is owned by Chase. Ocwen keeps trying to force me into a hardship refinance – we have a good credit score, no late payments ever and never approached them about a hardship. Any chance of getting this refinanced? No FHA or Freddie/Fannie backing.

  4. I am looking to refinance my underwater mortgage loan. My mortgage is with vhda ( Virginia Housing Development Authority) they dont offer refinance and my 7 year term will be up in 18 months with an interest rate of 6.75%

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