by Home Owner
Ask Kate: Home Affordable Modification Program - Can I combine my first and second mortgage using the Making Home Affordable Program? I have a Fannie Mae owned first mortgage with a major lender and a second mortgage with the same lender.
Can I combine both using the Home Affordable Refinance Program, HARP, as long as I don't exceed the 105% value?
The bank is only offering to refinance the first mortgage and says there's nothing they can do with the second lien. Is that correct?
Kate Answers: Home Affordable Modification Program - Can I combine my first and second mortgage using the Making Home Affordable Program?
Dear Home Owner, There is not much buzz on the web right now about the Home Affordable Modification Program with the second mortgage option. April 28, 2009, the Obama Administration announced these details on the Home Affordable Modification Program:
"The Second Lien Program announced today will work in tandem with first lien modifications offered under the Home Affordable Modification Program to deliver a comprehensive affordability solution for struggling borrowers. Second mortgages can create significant challenges in helping borrowers avoid foreclosure, even when a first lien is modified."
Q: I owe more than my property is worth. Do I still qualify for a refinance under HARP?
A: Eligible loans will include those where the first lien mortgage does not exceed 125 percent of the current market value of the property. For example, if your property is worth $200,000 but you owe $250,000 or less on your first lien mortgage you may qualify. The current market value of your property will be determined after you apply to refinance.
Q: I have both a first lien and a second lien mortgage. Do I still qualify for a refinance under HARP?
A: As long as the amount due on the first lien mortgage is less than 125 percent of the value of the property, borrowers with more than one mortgage may be eligible for a refinance under HARP. Your eligibility will depend, in part, on two additional requirements: first, that the lender that has your junior lien mortgage must agree to remain in a junior lien position, and second, on your ability to meet the new payment terms on the first lien mortgage.


We're getting a facelift! Please bear with me! The content is identical so continue to browse. I'm working as fast as I can to finish up!
Your friend,
Kate Ford
Lock Answers by Kate - Learn the nitty gritty inside story of locking your mortgage rate.
Refinance Answers by Kate - Refinancing brings out opinions, for sure! Get the facts here.
Answers by Kate For Seniors - Reverse Mortgage, the unique income answer for retirees.
Home Buying Answers by Kate - Learn how to buy a house. Unusual facts to aid your home buying experience.
Credit Answers by Kate - Improving credit could change your life. Find how to get more than temporary results.
FHA and VA Answers by Kate - Clear the fog. The low down on VA and FHA loan requirements.
PMI Answers by Kate - Private mortgage insurance, friend or foe? Do you know how to get rid of it?
ARM Answers by Kate - Do you have an adjustable rate home mortgage? You can ask Kate for help.
Loan Modification Answers by Kate - Unique help for modifying your mortgage. Make sure you don't miss this.
Website Answers by Kate - Yes... Readers even ask Kate how to build a website.