Saturday, January 7, 2012

Wells Fargo Harp 2.0: "Wait till March or April"

My mortgage guy calls me up yesterday and tells me that if I am still interested he could go forward with the refinance, and he now has all the information he needs.

Wow I thought...This was great news. When I asked him if it was true that there were no fee's with the harp 2.0 mortgage if you refinance to a shorter term he started to play dumb with me and asked "whats harp 2.o". I was kind of flabbergasted because he knew this was the whole purpose of me meeting with him in person 2 different times and what I was waiting for.

Basically he was trying to refinance me with the harp 1.0 mortgage saying I would qualify with that and tried arguing with me that my condo was not more then 125% underwater based on the information he had in his system.

I informed him that My condo was worth 30,000 if I was lucky and I paid 87,000 for it. I also told him I was not going to pay the appraisal fee associated with harp 1.0 or the higher origination fee's.

He then told me he heard nothing about harp 2.0 being lower in origination fee's. (even though I read it on the fannie mae info page. (see page 19-20 under pricing)

Basically I told him I was not interested in Harp 1, and I will wait till Harp 2 is out. He said it won't be until March or April, and he would hear more around Feb 1st.

I kind of feel like he was trying to trick me into refinancing into harp 1, even though he knew I wanted harp 2.

Sometimes it sucks being so smart. Hopefully it's not another April Fools Joke.


Anonymous said...

Quicken loans did the same thing to me - twice.

Anonymous said...

Bank of America tried the same thing too... offered my my same interest rate with $3000 in closing costs.

Chris said...

Do you have any idea why they think we are stupid enough to fall for this?

If I thought I qualified for the original Harp, or wanted the original Harp I would have done it 2 years ago.

It is kind of mind boggling that the government would offer this program starting Nov 15th, and not only does it take until April to make a few simple changes but in the mean time they will try to trick the waves of callers into refinancing into a product with more fee's, and a 125% limitation on house value that prevented all of us from even bothering applying the past 2 years in the first place.

It is very disgusting

Anonymous said...

can you get the Harp 2.0 refinance if you are unemployed but with excellent credit?

Chris said...

from what I read, you do NOT have to be employed.

But you do...

1) You need to have purchased your house prior to 2010

2) You need to have paid your mortgage on time for past year

3) Your loan must be owned by fannie mae or freddie mac

4) your payment must go down OR you must go into a shorter loan term.

5) I think you need a 620 credit score, but that may have been waved

Anonymous said...

chris....where did you read that you do not have to be employed to use the Harp 2.0...I called chase and they said you have to be employed. I am confused. I dont know what to do...

Chris said...


I am unemployed and without income. Am I HARP-eligible?

Yes, you do not need to be employed to use the HARP mortgage program. HARP applicants do not need to be "requalified" unless their new principal + interest payment increases by more than 20%. If the new payment increases by less than 20%, or falls, there is no requalification necessary.

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