Hang up in the HARP refinance

Community Leader
Registered: 08-25-2006
Hang up in the HARP refinance
5
Fri, 08-23-2013 - 1:55pm

This is the oddest thing, and my mortgage broker friend is at a loss, also. 

The notes I have with the City's Urban Renewal Agency are causing an issue.  Supposedly, Fannie Mae doesn't like the terms, even though they are subordinated!  Eh....the mortgage company gets their money first.  The City is the one that would take the hit if there was a loss.  Why do they care. 

My friend said that he can't imagine that Fannie Mae cares, and has never heard of such a thing.  Even the gal at the mortgage company is at a loss.

To shorten the story, they are asking for an exception. 

What is funny, is the gal from the mortgage company was just beside herself, all worked up that I was denied.  She went on about my notes, how they would never be written that way today, and I should get them changed, etc. etc.  I was really taken aback and just let her ramble on, knowing when I hung up I was going to call my friend. 

I talked to the processor in the morning, she said that they didn't like the fact that there is no payment history on these notes, and that they would ask for an exception.  Now that, I can deal with. 

I get an email this morning asking if I am working on getting my notes changed....eh, no!  If I get approved great.  If not, such is life.  And I hit SEND. 

Serenity CL making a second marriage work

Serenity
Community Leader
Registered: 07-26-1999
Fri, 08-23-2013 - 3:13pm

Yuck.  I hope you can get it all figured out!

Photobucket
iVillage Member
Registered: 10-01-2008
Fri, 08-23-2013 - 4:18pm

So so sorry for all you trouble.  I hope this works and you do get to refi.  Crazy!!!!

I got bad info from Bankrupcy attorney (original attorney's wife who is now in practice w/ hubby) when she said to go ahead with the loan and get approval afterwards.  I questioned this, but she said "oh yes".  Now the underwritting dept. wants the court's blessing BEFORE we close on 9-13.  So I'm scrambling to get this done the proper way and not loss my lock in rate of 4.875%.  I think it will be close, if not the rate may be slightly higher.

 At this point in my life.....I REFUSE to stress of this....absolutely refuse.  If it happens it happens, if it doesn't it doesn't.

Still rocking along....balance is now under $14,000 !!  We hope to hear something in two weeks about the refi.

Community Leader
Registered: 07-26-1999
Fri, 08-23-2013 - 4:34pm
Ugh that sucks also Norma! I wish I had known that's what she told you, I would have told you that that was the wrong advice. Sometimes we had people that would go and miraculously get loans for stuff before they asked the court, but we always advised people never to go take a loan or refinance out without asking for permission first.
Photobucket
Community Leader
Registered: 08-25-2006
Fri, 08-23-2013 - 6:48pm

Hey Norma, isn't it such a pain?  I was approved like 3 or 4 weeks ago.  And they don't notice this until they got ready to close?  I wasn't impressed with the title company, either. 

I think the real hang up (I found the Fannie Mae guidelines on-line) is the fact that it is considered negative amortization.  No payments, so as the interest posts every year, negative equity.  BUT, my interest stops acruing in the spring, so hoping based on that they may grant the exception. 

I kind of don't care any more.  This only made sense because it doesn't cost anything, and we can take the $100-$125 a month and put towards principal only.  I really don't want another 30 year loan, KWIM?  I am finally 5 years into my refinance I did in 2008. 

I think my interest is locked until the 1st of October, or something like that.  We shall see...

Serenity

 

Serenity
iVillage Member
Registered: 10-01-2008
Mon, 08-26-2013 - 4:58pm
time will tell for both of us. The worst that can happen to me is we loose the fix rate OR the BK court says NO...which they have no reason to do. I'm calling tomorrow to see how things are going. Good Luck!