How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Maverick Your Own Question

Maverick
Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 3523
Experience:  Over 13 years experience in civil law.
16823287
Type Your Real Estate Law Question Here...
Maverick is online now
A new question is answered every 9 seconds

We are considering refinancing our 30 year first mortgage (no

Customer Question

We are considering refinancing our 30 year first mortgage (no second) to 15 years using the Home Affordable Refinance Program (HARP). We are comparing rates and costs with mortgage companies to ensure the best refinance terms. Initially, we had been informed that our loan, held by BofA, is a Fannie and we qualify for HARP. As we prepared to lock-in rate and term, BofA informed us that our loan is a HELOC and does not qualify for HARP in Texas. Is this correct?
Submitted: 3 years ago.
Category: Real Estate Law
Expert:  Maverick replied 3 years ago.

Welcome to Just Answer! My name isXXXXX very much enjoy what I do and I hope that you will benefit from this information.

 

If you have a HELOC, then there is a good chance that it is not owned by Freddie/Fannie because they never really backed many of those types of loans.

 

However, you may want to check to see if either Fannie Mae or Freddie Mac owns your mortgage is an online property lookup tool:

 

Fannie Mae's lookup tool:

http://loanlookup.fanniemae.com/loanlookup/

Freddie Mac's lookup tool:

https://ww3.freddiemac.com/corporate/

 

If your property does not show up here, you should still call Fannie Mae or Freddie Mac to see they own your mortgage. Fannie Mae and Freddie Mac do not always have the exact address saved correctly. This is why it's important to call.

 

Fannie Mae's phone number:

1-800-732-6643 or 1-800-7-FANNIE

Freddie Mac's phone number:

1-800-373-3343 or 1-800-Freddie

 

If your loan is not Freddie / Fannie than HARP will not work.

 

 

If you need more clarification or follow up information, please feel free to write back as there is no extra charge. Otherwise, please click on the ACCEPT button. Even if you have put in your payment information, I receive no credit for my time unless you press "ACCEPT".

Sometimes the law does not give you the outcome that you may have anticipated. Please understand that this is not the attorney's fault. We are assuming that you are paying for an honest and professional opinion.


Please know that there may be a delay between your follow up question and my answers because I may be helping other customers. Rest assured, I will get back to you. In the meantime, you can learn more about me by clicking on my name at the bottom left hand corner of the screen.

This information is provided so you may better discuss legal issues with your attorney. Consult a local attorney for legal advice before acting. You may be able to find an attorney in your area to further assist you at http://www.attorneysaccess.com/ or http://www.martindale.com/.

 

If you feel that I went an extra step to help, a bonus would be greatly appreciated! Also, please know that you can always request me for a future question by starting your new question with "This question is for Maverick".

Customer: replied 3 years ago.
Thank you for the information. I have called Fannie Mae and confirmed that they do own my loan and they do not service HELOC loans. I have requested BofA contact their Fannie Mae representative and confirm. Since I have owned this home for 35 years, my loan has been bought and sold a few times and I have financed for home improvement (second mortgage for swimming pool). I have combined and refinanced for better rates a couple of times. Closing costs have been rolled back into the new loan. Would this activity be considered HELOC, and in Texas "once a HELOC, always a HELOC" apply? Does Fannie Mae owning my loan trump the Texas legislation?
Expert:  Maverick replied 3 years ago.

Under TX law, a HELOC is defined as an "open-end account that may be debited from time to time, for which credit may be extended from time to time and which is subject to certain fees."

 

This is not the same as a traditional home equity loan because the HELOC draws out the equity in the home to be used at the owner's discretion as a line of credit.

 

So, the first thing I need to know is do you in fact have a HELOC? It would appear to me that your loan is not a HELOC if FM is servicing it.

 

 

 

 

 

 

Customer: replied 3 years ago.

No, I do not have a line of credit, in fact, as a taxpayer, I have provided BofA a line of credit! I assume my previous home improvement loan is a traditional home equity loan.

Would this disqualify me from HARP?

Expert:  Maverick replied 3 years ago.

No, because HARP allows traditional home equity loans. Sounds like someone at BoA is confusing a HELOC with a traditional home equity loan.

 

 

Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 3523
Experience: Over 13 years experience in civil law.
Maverick and 7 other Real Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

Maverick,

BofA responded as follows: "Whether your loan was a HELOC, HELOAN or cash-out refinance it is a TX A6 and will not qualify for the Making Home Affordable program." This appears to be correct, however, how did BofA get Fannie Mae and what does a TX A6 have to do with HARP?

Expert:  Maverick replied 3 years ago.

The Making Home Affordable Program includes the Fannie Mae Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP).

 

http://www.mortgagefit.com/texas/a6loan-law-3.html

 

To be honest I am not able to make the connection but it appears to do with the fact that Texas has a liberal homestead policy and thus requires and 80% loan to value parameter. This may be why they are not able to do the HARP for you. See if the above link helps.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.
 
 
 

Related Real Estate Law Questions

Chat Now With A Real Estate Lawyer
Maverick
Maverick
682 Satisfied Customers
Over 13 years experience in civil law.