HARP 2.0 Subordination agreement
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
If you have a 2nd mortgage and you are refinancing under HARP 2.0, the 2nd will have to subordinate in order for your loan to get approved.. Most 2nd's will charge a fee for the agreement.. Usually around $250... Also note that not every lender allows for this, so you will have to be sure the lender you are choosing will allow for subordinated 2nds.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Daniel Hennek (danielhennek)
#71 ranked lender in Illinois - 23 contributions
If your second lien holder already took a fee then they are likely to not charge another fee if you select a new lender for your 1st mortgage refinance. Some banks may charge you twice but if you call and tell them the story a lot of smaller institutions are understanding. The second lien holder may or may not subordinate that second lien since it's up to them whether or not to sign a subordination agreement. There is nothing about HARP that will force them to sign the subordination. However, most lenders are subordinating even if the combined loan to value ratio is over 100%. We just closed one with a CLTV of 140%. Lenders are always concerned about risk and if you are getting a lower rate and payment then there is less risk of them losing money. So, since they are in the same situation with respect to their losses they would rather have you with a lower payment than a higher payment. Either way they are at 140% loan to value but if they let you get a new loan they are less likely to experience a defaulting borrower.
Exactly what I told them. This is a roll up bank who has been buying other banks from the feds and is run by an ex Bank of America executive. Knowing how they were operating on the fringes and outside of the law I guess I shouldn't be surprised that they are now trying to extort more money out of me in an interest increase. Sounds from what you are saying that nothing forces them to agree that I am between a rock and a hardplace. They are clearly trying to profit on the savings that HARP affords and they used the reasoning that I will still be saving some money. Just doesn't seem like ethical business.
Well said and true but never the less sleazy and unethical. Apparently though my research at this point indicates it is not illegal. It is business and needs to be dealt with as such. Beware - the clone of Bank of America is rising and will be upon us soon. If they choose to not do the right thing, I will release their name so that all who see this know what to expect from this bank.
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