What are the qualifications for the governments PRA program?
I talked to my loan servicer about refinancing my current loan, but was interested in how to qualify for principal reduction. The gov't.'s PRA program doesn't apply to Fannie Mae as I assume they have their own programs already funded. My rep said that I can do the refi, but he said that the reductions are a different story. He was vague, probably didn't know exactly what qualified, but if I wanted to pursue this further:- what are they looking for? being way behind in payments (I'm not, currently)?- does the refi prevent me from getting a principal reduction in the future?- should I just do the refi and save a few hundred a month and forget about the principle reduction?thanks by natali_858_503 from Pelham, Alabama. Mar 27th 2012
Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions
The principle reduction is pretty much non existent. There were only about 800 customers last year in the whole nation what were awarded a principle reduction. We did 2 of those. They are very difficult and take some legal work. 99% of the lenders don't work with the short refinance program. Are you currently late on your mortgage now? If you are current then you may qualify for the HARP 2.0. You may give me a call to discuss your options. 888-320-7888 www.MortgageWholesale.net
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
This is a Non Program... it's there, but it isn't... it's a mirage... it only exists in the world of unicorns... and if this program did exist.. it would not help those who don't need help... if you're not struggling, if you're making your payments on time, if you're not in a devastated area, then there is no incentive for the lender to reduce your principal balance.. keep in mind, this program isn't there to help borrowers, it's there to help the lenders from having more foreclosures then they would have... go through with the refinance and save your money... WilliamAcres.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
The biggest problem that exists today is the banks have gotten so big they are able to tell the government what they will do, not the other way around. This was a great program, in concept. The feds would provide the banks with a credit to be used to reduce the principal balance, BUT on the condition that the bank write of an equal amount. Sounds like a WIN, WIN. But in almost all cases the banks say no, we're not willing to write off any portion and take our chances that the borrower will not default. If you allow your mortgage to go delinquent, in an attempt to qualify for a principal reduction, you will mess up your credit and your chances to get a rate reduction under HARP, and you will still probably not get a principal reduction. So you are really left with the option of refinancing to get the best possible rate and payment available today and forget about any principal reduction. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com
Ralph Richard Guertin (ralph@absolutelowrates.com)
#58 ranked lender in Georgia - 807 contributions
Harp 2.0 is your best shot
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