HARP on 1st Mortgage - What about 2nd Mortgage?

I keep hearing about HAMP and now 2MP HAMP. What about the 2nd mtg after you've gone through HARP for the 1st? Both my 1st and 2nd are with Wells Fargo and were taken at the same time as a 75/25 with the intent to refi in a couple of years and roll it all into one loan. My property lost $40k in 3 years, conventional refi was out of the question. Also lost $500/mo in child support when my son turned 18 (still have the son living with me). I was approved for HARP on 1st mtg but they will not budge on the 9.3% interest rate on my second for any time of modification. My 1st Mtg, 2nd Mtg and condo fees total $1803/mo. I make $28.11/hour and it's just my income. Any suggestions?

Mortgage Loan Modification Answer:

If you had the HARP refinance on your 1st mortgage before the reduction in your income from loss of the $500 monthly child support, then I don't see why you couldn't go back to Wells Fargo and apply for a HAMP loan modification for your 1st mortgage, then a 2MP HAMP loan modification for your 2nd mortgage.

The reduction in income presents a change in your financial situation, affecting your ability to afford your mortgage. If the total of your 1st mortgage plus your property taxes and insurance is higher than 31%, you are eligible to apply for HAMP. As far as I know, you should be allowed to do so even after you've already refinanced through the HARP program.

If you are approved for HAMP on your 1st, you automatically qualify for 2MP on your 2nd.

Call Wells Fargo and inquire about their HAMP loan modification application process.

Best of luck to you. I hope everything works out. Please do come back and share your outcome so others may benefit from your story.

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Sep 07, 2010
HARP On 1st - What about 2nd
by: Dean

I take it that your modification on your 1st was made permanent. I also take it that you used child support to qualify for the HARP. (Using child support to qualify is optional-and only use it if you need it to meet the 31% of income requirement). If the HARP is considered a refinance, and I believe it is, then there is a one year "seasoning rule" before you can request another modification on your first.

However, you should still qualify for the 2MP (2nd mortgage modification) Now you can use the change in circumstances to modify the second.

Unfortunately, there is nothing that says the Mortgage Servicer has to do anything. The biggest reason these programs are broken.

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