Financial/Mortgage Advice Please

Vulchor

A quick question to all of you with a background, knowledge, or such the like with regards to mortgages.......

Wife and I are applying for HARP. Our home is worth a little less than we owe on it. Have never missed a payment, no issues there. Our credit is ok---mine is better than her's, but Im guessing 650 minimum. Assets are few as I have a retirement policy with work for about 8k and a saving with about 1500. Debts are the home, student loans of about 25k, credit cards about 6k (down about 8k in the last year thank you very much), and just the regular bills beyond that. Paycheck to paycheck, but knociking out the debts like weve been trying to will make it better
Here's the question. When applying for this, they want to know assets, which appaently make you a better person to lend to. My stepson has aabout 40k in the bank from an insruance policy he recvd. While the legal issues may be another story, would it be advantageous for me to put that money in my savings to showe as though there were more assets...at last untl the loan goes thru? Or will this not make a difference AND/OR be fraud I could get busted for?---------Any hel[p is greatly appreciated on here, or PM would be even metter probably. Thanks alot, and hope everyone enjoyed my financial life story;)

Vulchor

And I have no idea how or why that second part was bold....but anyway.......

JDH

In the words of Buford T. Justice, "You can think about it, but doooooooooon't do it!"

Theedge

My guess is that they would question the timing of such a deposit. When I did a refinance it was a pain in the butt for me as I had been putting larger company charges on my personal credit card simply to get airline miles. I had to write a letter explaining the unusual activity.

Marker

HARP... in general you are going to run into massive roadblocks from the lender 90% of the time. They don't want refi. Even if you get your refi they will add tons of fees in the refi (usually hidden) so you are paying just as much as you were before. What you should have saved will be turned into fees so the bank doesn't lose income.

The bank might lead you on to pay a new amount then say they didn't receive the payments. After you are 3 months 'late' because they did not receive them they will foreclose. Another tactic to get more money by just selling the house in forclosure.

My main point is be super careful and be prepared to hire a laywer. Banks don't want to give out HARPs. They want money. If you tell them you would like to refi into a lower rate or lower period of time (costing them interest in the ammoritization), they will push back heavy.

bigharpoon

Assuming you already know you are eligible for HARP you don't have to stay with the same lending institution you loan is carried through now. If they give you a hard time because they stand to lose money compared to the interest income they generate from you now...look elsewhere. You can take your loan to another HARP providing lender who isn't losing a margin of income but rather picking up a new customer and a new loan.

As far as putting money in the bank I'm not sure. Maybe they are trying to boost your equity level and give you a loan for more than you really need???

raymallen1

I'm not too familiar with mortgages, but I work for Wells Fargo in asset based lending in commercial banking. If you claim assets, they have rights to those assets if it's what they base the loan off of. Best bet would be to not claim your sons savings. If you qualify, you qualify. If not, then it's best not to lie to get a loan. To many people did that during 2004-2007 and they lost their homes.

Vulchor

Thanks...dont think i will do it, mainly because of the timing as someone said above. Not worried about losing the home or taking out a larger amount than its worth----no interest in that. Also, it was a Fannie owned home and this is bring done by a different lending institution, so Im not too concerned on that front.