Is there any reason why a second mortgage lender would not resubordinate for HARP?

It depends on the actual lender. If it is one of the traditional bank type lenders, the usual reason a subordination request is denied is because the instructions were not followed. I've even had lenders state in their subordination instructions that Owner Occupancy is required for approval and they have approved a subordination on a rental. As long as you provide all that they are asking for, it should be approved. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

There are a few lenders in 2nd position that will not re subordinate, but don't let that stop you.. rates are low and it's been up and down over the last few weeks.. so you really shouldn't delay.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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

I have completed close to if not 100 of these transactions over the past year and have not experienced any issues with the subordination. As long as you follow the requirements the subordinating lender provides, you will be fine.The biggest obstacle that catches borrowers (and some lenders) off guard is the presence of mortgage insurance on the current loan. Quite often the current mortgage has an insurance certificate in place and the borrower is not aware as the MI is lender paid. This can be a problem if you are not working with a lender that has an outlet for these.If there is a MI certificate on the note we have to contact the MI company to determine if a balance is due on the policy. If there is we have to convert the MI certificate to borrower paid (from lender paid) and add it to the payment on the new mortgage.None of the big box institutions such as GMAC, Chase, CITI or Bank of America will allow this (it is the #1 reason for a turndown). I have only found 1 investor on the secondary market that will take it. Fortunately this investor is easy to work with and competitively priced.One question I have for you is why are you waiting? Rates have become more volatile over the past week and if a cliff deal is approved by Congress we will certainly be looking at higher rates for the short run. You should consider locking in a rate offering as soon as possible.I would love to assist you with this refinance. I am very experienced with this type of file and have several client reviews )rating my service 5 out of 5) that I can share with you.Please feel free to give me a call at 440-429-LEND if you want to discuss this further.

First,who is your lender for the first mortgage, and who is the lender/servicer on the second mortgage?? certain servicing companies and lenders have rules ,so we need to look at that first linda yourloanpartnerforlife@live.com

Some few use the process to leverage additional money (payment) from you, they really just want the loan paid off. That isn't typical, most will allow the subordination if your loan is in good standing as long as you aren't increasing the current balance significantly.

There are acutally a couple or reasons. One the find most often is the 2nd won't allow for a Combined Loan To Value (CLTV) that is high enough. This is the total of both loans added together and that is what the high loan to value between the two. The other is that the 2nd comes up with the excuse that they want some sort of lump sum payment of like $10K-$20K in order them to approve the subordination. Although rare, this was a question just last week of a person that was told to by the 2nd lender to pay $20k and they would subordinate.

I haven't had a 2nd lien holder deny a subordination request in years. With HARP 1.0 they did, but finally realized that they were shooting themselves in the foot by causing the first mortgage to be denied for refinancing. I'm sure those banks figured that it was a bad business decision where borrowers may just say "forget it" and walk away from both loans. However, I did have one this year where the lien was an interest free remodel loan from a municipality. They wouldn't budge.