Both are serviced by Wells and the second still held by Wells. The home qualifies for HARP refinancing on the First only and Wells is happy to process. This, of course does not deal with the second (a line of credit), which resets in two years. Do i loose any rights or advantages if I refinance the 1st mortgage now?
Real Estate Attorney
Depending on how upside down your home is and how much would go to the 2nd if the home were to be sold say at a foreclosure, you may be able to settle it. If not you may also be able to receive a modification to deal with the future adjustment. If it is entirely wholly unsecured (meaning more is owed on the 1st mortgage alone than the home is worth) you can also look at a ch. 13 to strip off the 2nd lien after the Ch. 13 plan has completed.
If settlement, modification or Ch. 13 are not options that will work for you than you are likely facing a short sale on the property if you cannot afford the payments. You should consult with a real estate attorney to learn about all of your options and figure out a game plan that works for your situation.
You will want to be careful not to miss any payments on any of your loans if the 1st loan is eligible for HARP because that may make you ineligible.
In addition to AVVO's disclaimer, please note that by giving this answer no attorney client relationship is intended or entered into and unless there is a signed fee agreement in place, neither myself nor anyone in my firm has intended to solicit clients nor do we represent them. The answers are general in nature and may be given without weighing or knowing all of the specifics of any particular question or situation. No answer should be relied on in whole or in part, in a decision to act or not to act in pursuit of any potential claims or actions. You should always consult with and obtain the advice or representation of a licensed attorney in your state to protect your rights regarding your case or matter.
Real Estate Attorney
Your loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009 in order to qualify for HARP. If your home is underwater, you can try to modify the second or settle the second for a lesser amount than owed.
DISCLAIMER: This answer is provided solely for informational purposes only. This answer does not constitute legal advice, create an attorney-client relationship, or constitute attorney advertising. Liewen Law is fully compliant with every State and Federal Law, including California SB 94 and the related Civil Code Sections, as well as the FTC Mortgage Assistance Relief Services (MARS) Final Rule. Liewen Law is a debt relief agency helping consumers file for bankruptcy relief under the United States Bankruptcy Code. Liewen Law maintains this website for marketing and informational purposes only. None of the information or materials on this site is legal advice. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. Said information is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship. While we make every effort to keep this site accurate and up to date, we do not guarantee its accuracy and are not responsible for inaccuracies, errors, or omissions.