Financing in 95757>Question Details

Optiqest, Home Owner in Sacramento, CA

Refinance with 2 foreclosures on record?

Asked by Optiqest, Sacramento, CA Tue Jan 17, 2012

Hi, the refinance would involve my primary residence with 290k balance (90% LTV) . I have gone through a short sale on an investment property last year that was not successful and ended up foreclosing. Also in 2008 i had another foreclosure on an investment property. My concern now is if i am able to refinance my one and only primary property? Is FHA refi an option giving that one of the foreclosures are within the 3 years FHA requires to be free and clear of? Can my credit be repaired to be able to qualify? Seeking a professional to work with. Thank you.

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I want to clarify the information that James provided in regards to the current HARP or the HARP 2.0 program. It is true that you can go into Fannie Mae or Freddie Mac's website to see who owns your loan. However, if your loan file was not received by Fannie Mae or Freddie Mac before 06/01/2009, you will not be qualified under the HARP program.

The news has been reported that you must close escrow before 06/01/2009, and that simply is not true. The loan must be sold and transferred to either of these two entities before 06/01/2009 in order for any borrower to qualify for Making Home Affordable Refinance Program.

We are all sitting patiently to see what the new guidelines are in March for the HARP 2.0. Hopefully, the guidelines are useful enough that we will be able to help our borrowers.

What Jeff and Robert said are correct on how we normally treat and advise our client in regards to foreclosures.

You must wait for at least 3 years from the date that your lender reported your last foreclosure to the credit bureaus before you can apply for FHA loan.

Good Luck
1 vote Thank Flag Link Thu Feb 23, 2012
There is a site that will help you determine if you can qualify for a refinance after short sale, foreclosure, or filing bankruptcy. Check out http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sat Aug 10, 2013
I agree with Gregorio, Jame's input is off base as HARP 2 loans can't be fully underwritten until March 19!
We also don't even know if our homeowner's loan is HARP eligible....

Though we've 'heard' that HARP 2 will have some relaxed guides regarding distressed sales on other properties, nothing can be confirmed until March 19th, and I don't expect a recent foreclosure to be ignored in this process...

FHA won't work since you'll 3 yrs since your last foreclosure, and you'll also incur mortgage insurance with any FHA loan, which would probably offset the benefit of refinancing..

Re credit repair, unless the foreclosures don't belong to you, you simply have to wait it out....there are plenty of credit repair companies claiming they can get anything removed, which they might be able to do....but what they CAN'T do is permanently remove this information from your credit history!

Let me know if I can be of further assistance!

best, Jeff Marr
0 votes Thank Flag Link Wed Feb 22, 2012
Hi Homeowner,

Here is zillow's harp eligibility calculator:
http://www.zillow.com/mortgage-calculator/harp-eligibility/

Here are the official FNMA and Freddie Mac guides for HARP2 for further clarification:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2011/se…
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1122.pdf

http://www.makinghomeaffordable.gov/about-mha/faqs/Pages/def…

Here are the loan lookup tools for checking whether your loan is owned by FNMA or Freddie :
http://www.fanniemae.com/loanlookup/
https://ww3.freddiemac.com/corporate/

Here are the phone nos of the respective Banks that are participating in HARP 2.0 (from zillow):
Bank of America: 1-800-846-2222
Wells Fargo: 1-877-937-9357
Chase: 1-800-848-9136 for current accounts but 1-800-873-6577, for new refinance or purchase
Citi: For servicing your existing CitiMortgage account: 1-800-283-7918 or For a New Mortgage or Refinance: 1-800-248-4638
US Bank: 1-866-932-0462

I have a client who had 2 shortsales and has been delinquent on these other mortgages for 1 year, yet he is in the process of doing a HARP 2.0 refinance at 4.5% int rate with Citimortgage. He is current on the property he is refinancing. You might want to give your bank a call to verify eligibility for a harp 2.0 refinance.
0 votes Thank Flag Link Sat Jan 28, 2012
Please ignore what James said, it is completely untrue and with 2 foreclosures, one being last year, you will not qualify for HARP.
0 votes Thank Flag Link Thu Jan 19, 2012
If you have always been current on the mortgage of your primary residence, and it is owned by FNMA or Freddie Mac (you can check online by using their "loan look up tool"), then you may qualify for a HARP 2.0 refinance. This is a new program offered by the Government. They do not look at your fico score, nor do you have to qualify in terms of income. The interest rate should be better than what you have now. You can only do it with your current loan services (Citi, Wells, Bank of America are participating). Good Luck
0 votes Thank Flag Link Thu Jan 19, 2012
Below are the waiting periods to get a loan after foreclosure:

-FHA 3 yrs
-conventional 7 years

So the earliest you could refinance would be 3 yrs after the deed transfered out of your name for the last property that foreclosed. If that last property foreclosed in 2011, you would be looking at 2014 before you could do a FHA refinance.
0 votes Thank Flag Link Tue Jan 17, 2012
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