It could be the most underserved part of the market: investors stuck with rental properties – and who don’t want to default – need to refinance but can’t because they’re underwater on home equity. Here’s what one investor told us: “I’ve been trying to complete a HARP 2.0 refi on one of my rentals. I have been working with B of A who services the loan. It has been the worst loan experience of my life. Four months later and still no closing. It seems like B of A is trying their best to make me give up and go away. No return communication, high employee turnover.” In other words, some lenders may be racking up huge volumes of HARP applications – but only for owner-occupants. Will regulators and politicians come to the rescue of investors who don’t actually live in the properties? We shall see.
