(Photo credit: Wikipedia)
If your underwater loan is not owned by Freddie Mac, Fannie Me or FHA which has its own streamlined refinancing under a program announced in January, you might be eligible to refinance under provisions of the recent National Mortgage Settlement.
Details of that settlement are being worked out, and eligible borrowers will be notified by the five participating lenders – Wells Fargo, Bank of America, JPMorgan Chase, Ally, and Citibank – at some point.
You are current on your loan, but underwater.
Potential Benefits
Eligible underwater borrowers may have an opportunity to refinance loans at lower
interest rates.
Checklist for Eligibility
You own and occupy your property, and your property has no more than four separate units.
Your mortgage is serviced and owned by one of these banks: Bank of America,
JPMorgan Chase, Citibank, Wells Fargo, and Ally Financial (formerly GMAC). Note
that Fannie Mae and Freddie Mac-owned loans may be eligible for refinance under
a separate program called HARP. To see if your loan is owned by Fannie Mae or
Freddie Mac, go here.
Your mortgage is underwater—i.e., you owe more on the loan than the current value of the house.
You have not made any late mortgage payments within the last 12 months.
You have not been through a bankruptcy or foreclosure in the last 24 months.
Your current interest rate is at least 5.25%
The refinance would reduce your interest rate by ¼ of a percentage point or your monthly payment by at least $100.
Your mortgage is not a manufactured home loan, and it is not insured by the
Federal Housing Administration (FHA) or the Veterans’ Administration (VA).
There are no restrictions on when your mortgage was made – could be any date.
Process
The participating banks (BofA, JPMorgan Chase, Citibank, Wells Fargo and Ally Financial) are required to notify eligible borrowers of the availability of the refinance program, but borrowers may also contact the banks directly for information. The application process has yet to be determined.
There is a full guide book available at http://goo.gl/2FZKM.
HARP2 by Fred Glick 
What lenders are on-board with re-fi’ing Freddie loans using HARP 2? I’m having a helluva time finding a lender to pick up my Freddie loan [serviced by Wells]. My FICO is 780, house is over 125LTV …Flagstar is only doing doing HARP2 on their current loans; and ICON is limiting to 125LTV.
Can you suggest a lender that will pick up a Freddie loan??
I have lenders that can do the loans. Call me at 215-852-4469 or 415-683-6950. Fred
So the big question is when? We have been trying for the past three years to refi our 9.75% arm loan with BOA and because we are not Frannie/Freddie or FHA/VA it’s a no go. We are underwater do to a Rental Rehab loan with our city at 2%…yes a lean against the home makeing us under water! We are losing out on so much money. Bank of America will not let us know when…they just keep saying there is nothing we can do for you. ugh!!!….So upsetting for those who make there payments and have decent credit.