Q&A: Obama’s loan modification program and 2nd mortgages?

Posted on Oct 14, 2012 in HARP Refinance

Mortgage Refinancing: Wait or Move Now?
The CoreLogic Home Price Index is up 2.5 percent from a year ago and the Federal Housing Finance Agency's purchase-only index reached its highest level in nearly two years, order medicine after growing 3.7 percent from last year — the fastest pace since September …
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Arizona State Credit Union reports members' HARP savings
Arizona State Credit Union saved 600 of its members more than $ 2 million each year by participating in the federal government's Home Affordable Refinance Program. The average member saved $ 369 on monthly mortgage payments, website the credit union reports.
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Question by Go with the flow: FHA has no mimimum mortgage requirement, website but banks will only make a loan for so little?
True or False.

Let’s say you find a house for $ 8, information pills 000
From what I have read, there FHA does not have a minimum requirement.
But, from what I have read most banks do not make mortgages for loans under 40K or 50K. My guess is all the paperwork and costs would be too great for an amount so small.

Anyone an expert on this?
I am sure there are banks out there that will do mortgages for only 30K, but I can’t imagine it being worth their time to do a mortgage for less

Best answer:

Answer by djstwain
As with any business they get to decide what loans will make them money. When you take into consideration the cost of doing business, it may not makes sense for them to write a loan for under $ 20,000. I would try a credit union or local regional bank.

What do you think? Answer below!
Question by tiredbutwiredlove: Obama’s loan modification program and 2nd mortgages?
We have 2 mortgages. Our first mortgage company will do the new modification, cure but does our 2nd mortgage company have to? I’m confused how Obama’s new plan covers those of us with second mortgaes who have lost our income. I know we would be able to refinance and put them together under the new plan, more about but I still don’t think it would save us much, and not as much as getting both of them modified. Any help in understanding this would be great!

Best answer:

Answer by Gaytheist Buddha
No help for second mortgages.

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4avg.rating 14 votes.

3 Comments

  1. Sorry to tell you this, but Obama is an empty shirt. His plan is filled with smoke and mirrors that give people like you false hope.

    Very few people will benefit (long-term) from a loan modification. That’s why they are rarely done.

  2. dont listen to zeuz he is talking out his ass, i just modified my mortg and i am saving $ 400 per month, as for you the only thing you can do is refi they wont modify your second mortg but if you refi you can get a lower rate then what you are paying now.

  3. dz is clueless. Neither the first or second lender HAVE to do anything. If you refi to put them together you still have to qualify for the new loan. The modification program does NOTHING for 2nd liens.

    The Govt plan is a lot of hot air. No lender is required to do anything. Nobody is getting a 2% 30 Fixed loan. Its not happening people. In most cases they are extending the term on the loans. Any reduction in rate is temporary. 5 years at most. If you qualify for a refi your better off refinancing for a low rate that wont expire.

    Zeuz is correct its a lot of smoke and mirrors.