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What if a borrower has a second lien and the total debt on the property exceeds 125 percent?

April 26, 2017borrower debt exceeds lien Property total

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What if a borrower has a second lien and the total debt on the property exceeds 125 percent?

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There is no combined loan-to-value cap on a refinance under HARP, so a borrower may still be eligible for a refinance, provided (1) the first lien mortgage does not exceed 125 percent of the current value of the property and (2) all junior lien holders agree to subordinate to the new first lien mortgage.