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Both my first and second mortgage were with Wachovia - which was purchased by Wells. My first was sold to Freddie Mac.

Turlock, CA |

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?

Attorney Answers 2


  1. Best answer

    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.


  2. 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.

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