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  1. #1

    HARP 2.0 Subordination on 2nd Mortgage Questions

    I am in the process of trying to refi through HARP 2.0 as I was contacted by my primary lender (Chase). I was preapproved, told everything was fine, that the bank that holdes my 2nd, The Golden 1 Credit Union would have to agree to subordinate on the loan. The 2nd is for 26K and has about 7 years left on it. We are working at a CLTV of about 150%. Our home is in California.

    I have been reading about subordinating loans and the only two things I found about TG1 were that they denied the refi. One was because the payment was going up, the other did not say. This refi would save over $400 per month. We would not be adding anything to our principle balance. My husband and I have credit scores of 780+ and have NEVER missed so much as a PG&E payment, let alone a mortgage.

    I have 2 questions:
    #1 are we likely to be denied....if so I fail to understand why.

    #2 If we are denied, we have enough credit to write a check against a credit card. The bank doesn't seem to care about our debt, they just want to doccument it. Is this a reasonable option? Obviously if I had the cash to pay it off I wouldnt be paying $200 per month in interest on this loan.

    Thanks to all who repply, this has been really stressing me out, not a lot of sleep lately.

  2. #2
    Welcome to the forum! Thank you for sharing your story with other homeowners.

    I have done many HARP transactions and to this day I have not had a problem with a 2nd mortgage subordination. If they don't agree to stay second position they are adding additional risk of foreclosure to your loan. And yes if you're denied the subordination which is highly unlikely you can pay the loan off.


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