2nd Lienholder Denying Subordination Request On Harp 2 Refin

by **Ignado** » Sun May 11, 2014 10:54 am

We are refinancing our primary mortgage using the HARP 2 program, through GMAC. We have a HELOC with PNC, and they are denying our subordination request, saying CLTV exceeds their requirements.

High loan-to-value ratios is the main reason the HARP program was created!!

PNC says I have no recourse.

They say that a 3rd party lender actually "owns" our loan and that they are the ones that made the decision and won't change their mind. They say they can't tell me who this 3rd party lender is, so there's no way for me to contact them.

Furthermore, there was no appraisal done on our property (hasn't been one in nearly 10 years), so I don't know how they can know the true LTV, anyway.

Do I have any rights at all to know who "owns" my 2nd mortgage, and do I have any recourse with this denial?

by **Malik** » Sun May 11, 2014 2:18 pm

Generally if a 1st is reconstructed and there is a 2d the 1st becomes the 3d unless the 2'd agrees to let them back in front.

Now if your debt and payments to the first goes down you make a good point that 2d is now a bit safer but not every 2nd sees it that way --and if I were a 2d I might want you to pay me something for letting you put #1 back in line ahead of me

I'm not up on details of why a HARP would make the 2d happier.

by **Garren** » Tue May 13, 2014 3:01 am

Thank you. I think that's where my confusion lies ... I have a right to know who holds the 2nd mortgage ... but PNC isn't necessarily obligated to tell me. Such BS, imo.

by **Raynor** » Thu May 22, 2014 9:43 pm

HeiRand:Do I have any rights at all to know who "owns" my 2nd mortgage

Sure.

But unless there is something in your loan contract that requires the lender to tell you then, no, the lender doesn't have to tell you.

You might be able to find out by check your County Recorder's records to see if any recorded documents with your name on it reveal who the lender is.HeiRand:do I have any recourse with this denial?

Again, your HELOC loan contract will spell out the rights and obligations of both parties.

HeiRand:

Furthermore, there was no appraisal done on our property (hasn't been one in nearly 10 years), so I don't know how they can know the true LTV, anyway.

Well, there are plenty of places online (like Zillow) that can approximate market value and lenders generally have everything about your house on record where they can do a computerized appraisal in-house.

You are free to pay for your own professional appraisal and submit it to your HELOC lender but that still isn't likely to obligate them to anything.

by **Gwalchmei** » Thu May 29, 2014 4:23 pm

Drew, I'm not sure I follow your response. What do you mean by "move himself further back"? PNC would stay exactly where they are. We would still just have 2 loans. First wouldn't expand; in fact it would shrink significantly with the refi.

by **Wyndell** » Sat Jun 14, 2014 6:38 pm

There's no strong company reason behind a bank in a significantly secure 2'nd placement to maneuver herself more in point by permitting the first to increase anything. No wise 2d might gave away influence t/e cautious overview of the chances...Accurate, if going to destroy the Next is much better to deal with anything in the place of only to date we're not in 2'nds sneakers?<br />

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