Location: Florida
Submitted 07/06/12 09:55 AM

Q. I applied for a HARP II loan modification with my present lender (Wells Fargo) and I meet all the requirements except one....I own a second home in the next town over and I haven't paid the mortgage during the previous 12 months. This home is also underwater. Wells Fargo denied my application because I was not current on my mortgage for the second home. This was apparently the deal breaker....according to my research this issue is not mentioned anywhere as a requirement to qualifing for harp II. I am at a loss as what to do next...please help!!

 

Answer #1
Submitted 07/06/12 10:08 AM
Helen Wiegman (Wiegman Realty Group): Broker Owner in Lakewood Ranch, FL Helen Wiegman (Wiegman Realty Group)
Broker Owner
Lakewood Ranch, FL

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A.

Great Question.  It seems that the rules on these modifications constantly change and sometimes the individual Lender has their own rules. 

I have a few questions for you?

Who is the lender on your other home?  Which home is your primary residence?  What are you plans for the other home?  Are you short selling it? Are you letting it go into foreclosure?  Are you able to get current on the other home?  Is renting it out an option.

 If it is Wells Fargo for the second loan, I would get on the phone with them to see what you can negotiate.

In the meantime, I will do some research on my end and check into some realtor only sites to see what can be done!

 

Warm regards,

 

Helen Wiegman

www.wiegmanrealty.com

wiegmanrealty@gmail.com

Non-member response
Submitted 07/06/12 12:08 PM Thank you for responding!!! Chase Bank is the lender on my second home and I presently have it rented. My primary residence is the home that I tried to modify the loan (HarpII) and was denied by Wells Fargo. I am presently trying to modify the second home loan with Chase and I've provided all the information they requested. I expect and answer within thirty days. I don't think they are using Harp II, must be some other Loan Modification program specific to Chase. I paid $224K for the second home in 2005, I owe 165K on the loan and the value is around 120K. I do expect to short sell the home at some point in the near future because the rent doesn't cover my annual expenses. The only way I would keep the second home is if Chase cut my mortgage payment in half and reduce the principal. I don't think that would happen.

Answer #2
Submitted 07/07/12 09:23 AM
Annette Sievert - Corvallis, Oregon (CB Valley Broker): Agent in Corvallis, OR Annette Sievert - Corvallis, Oregon (CB Valley Broker)
Agent
Corvallis, OR

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A.

Go to a LOCAL lender and talk to them. In my experience all big banks do nothing else than trying to find a fly in the ointment and delay or cancel on basis that are nowhere to be found as guideline, all in the name of CYA.

My experience with solid, local lenders is excellent.

Answer #3
Submitted 07/07/12 09:51 AM
Steven Cook (MLO #293441) Pierce, Kitsap, Thurston, King Counties, Steven T Cook (Cascade Pacific Home Loans - Federal Way, WA): Mortgage in Tacoma, WA Steven Cook (MLO #293441) Pierce, Kitsap, Thurston, King Counties, Steven T Cook (Cascade Pacific Home Loans - Federal Way, WA)
Mortgage
Tacoma, WA

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A.

Chase is one of the 5 large banks that settled with Attorney Generals of most states earlier this year.  Part of that settlement was that they would be doing some principal reductions.  So it might be that Chase could possibly reduce your principal and lower the rate on the new balance.  Work with them as best you can.

Non-member response
Submitted 07/08/12 05:22 AM Thanks for the input....my next step will be go to a local lender on my primary residence. On my second home (Chase is the lender) I do expect and answer within 30 days. Thank you for help and guidance...I'll certainly let you the outcome on both my primary residence and second home.

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