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HARP 2 FRUSTRATES MANCHESTER, CT PROPERTY OWNER

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

"HARP 2, Frustrates Manchester, Ct Property Owner”

 

I am seeing many frustrated homeowners, that are sharing experiences of being denied and not understanding why. The main reason, poor knowledge with this mortgage product.

 

I received the email below from this frustrated property owner that owns a 3 family, investment property in Manchester, Ct.frustrated with HARP 2 in Manchester, CT

 

Here is the reason this loan was denied. The guideline on non-owner occupied properties work this way. A first mortgage can get approved up to 105% of the appraised value, which is not the problem with this transaction. The problem is the second mortgage. The guideline says the combination of the 1st and 2nd mortgage can’t go above 110% of the appraised value.

 

If the property is in fact worth $190,000 and the first mortgage balance is $180,000 and the second mortgage is $35,000, then the combined loan to value is 113%. If the appraisal comes in lower than the $190,000, the loan to value gets worse.

 

The key to getting a HARP or any other kind of loan product, you need to be working with someone that knows what they are doing, otherwise, lots of frustration.

 

 

Harp 2.0 - 3 family investment property, excellent credit

 

I am beyond frustrated with the information I am reading on the internet about what qualifies for HARP 2.0 and only to find out that I do not qualify. Can anyone help?

Here are the details - 3 family investment property, owe $180K on first mortgage with Freddie Mac, $35K on second. Property value is approx. $180 - $190K. Credit score of 800, excellent income, reserves, savings, 401K etc. I recently was told that when they run this property through the LP system that it is coming up as a caution. I can not figure out why or what I can do about it.

The LTV is about 102% which is lower than the 105% limit, the HARP guidelines indicate investment properties qualify so I do not know what the problem is.

Can anyone help or know a lender that actually lends based on these situations. The house is in CT.

image: David Castillo Dominici/freedigitalphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comments (6)

Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Joe

Thanks for sharing your insight on HARP 2.

Good luck and success.

Lou Ludwig

Jun 25, 2012 05:05 AM
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good afternoon Joe.

I hope that the information will open the eyes of those who are in need of HARP 2.

A great post.

Jun 25, 2012 07:37 AM
Andrew Capelli
Troy, MI

Joe: That's a great point- HARP is not a "one-size-fits-all" immediate fix.  Thanks for bringing the scenario to light as a good example.

Jun 25, 2012 10:06 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Joe knowledge of loan programs is key if you want to get an approval. There are to many pit falls these days, to just shut from the hip.

Jun 25, 2012 12:25 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Too many smoke and mirrors Joe, it would take the whole circus to jump through that many hoops. Our government acts like it is giving us everything and by the time you peel the banana back someone ate the banana.

Jun 25, 2012 12:35 PM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Joe.  Ignorance is not bliss when dealing with the government.  Good info.

Jun 25, 2012 08:55 PM