HARP loan after CH 13

[Limitman]

Well I was discharged from a 13 this year January. I have checked my credit score and it's around 681 amaziningly. My mortgage is through Gmac. I called them and applied for a HARP loan yesterday cause I am about $25000 underwater thanks to the falling house prices. My current percentage rate is 6.75%. It appears I was approved for a loan with and percentage rate of 4.6%! I have filled out all the papers and submitted them and it seems the ball is rolling. I will update as things unfold but the title company already called me for some info so it appears to be moving forward.

[Pandora]

didnt GMAC just file for BK themselves?

Be sure you whatever offer they're giving you in writing and signed by the lender....

[Limitman]

Yes they did. I gots letter stating its business as usual while they restructure.

[Pandora]

Wonder if any loans have to be approved through the Courts first...? Hopefully new terms of 4.6% - will save you $ in the long run if you desire to keep the house; does it extend your terms out? Remember, home values are still falling - so keep that in mind.

Best of luck to you - keep us posted!

[Limitman]

Yes I have only lived here 5 years now and had a 30 year loan so now it's back to a 30 year loan. Yeah as far as timing and home values falling that's kind of a crap shoot. I can't imagine it would drop lower than it is now but I can't predict the future. The home I live in has been in the family for years so I'm trying to keep it that way. If it wasn't a family home the "right" thing to do while I was in my CH 13 would have been to walk away, but I really tried my best to hold onto it. Now I would say yes I am gonna live here long term but with the uncertain times we live in who really knows.

[Limitman]

Looks like loan is approved and I will sign papers this Monday. The loan will fund by next Friday! My interest is 4.5% a little better than I though initially. So this is all great news to me. Gonna save me a little over $200/month it does put me back to a 30 year loan but I have only lived here five on my previous 30 year loan. Now if I can just make one or two extra payments a year that would be awesome.