Received HARP Principal Reduction due to being underwater; now want to refinance

I think what you mean is you did a HAMP (Home Affordable Modification Program) loan.. HARP (Home Affordable Refinance Program) is a refinance program for folks who were underwater, but still wanted to refinance to take advantage of the lower rates.. HARP allowed them to refinance the outstanding balance without the necessity of an appraisal, nor did the program take into consideration the loan to value.. But what you did was a HAMP loan modification. This is completely different.. Under HAMP, you had a principal reduction or principal forgiveness, and lenders will not refinance you if you had a loan mod where there was a principal reduction/forgivness.. So, even though the HARP guidelines allow for you to refinance a modified mortgage, lender "Overlay's" disallow your scenario because there was a principal reduction. Sadly, the only way around this is to sell your home, and buy another.. I've yet to come across a lender who will allow you to refinance after a loan mod with principal reduction. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Ok.. I think I understand, but without seeing all your documentation, it's near impossible to advise correctly, but in general, I think you actually did do a HARP refi, But you combined it with the "Hardest Hit Funds" which is a Grant that allows you to reduce the first mortgage to where your LTV was not greater than 100%. But the grant has repayment terms if you sell inside of 5 years. Under that scenario, you should be able to obtain financing, but you cannot use HARP, since with that program, you can only use it one time.. If you refinance, you would be subject to the lenders Loan to Value and Combined Loan to Value (LTV & CLTV) guidelines. And, if you apply for a conventional refinance, you must meet the LTV & CLTV guidelines.. But if your loan to value is greater than 80%, you will pay a higher rate and you would be required to pay mortgage insurance. For a conventional rate and term refinance, you cannot be above 97% LTV/CLTV. This isn't anyone trying to "screw you over".. this is the guidelines that have been in place for years, and it's why the government allowed for HARP refinancing in the first place.. So unless your combined LTV is 97% or lower, then you cannot do a conventional refinance. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347