Would we qualify for loan modifcation, refinancing or short sale?
If anyone can give us any advice, it would be greatly appreciated. I don’t know anything about this, so I’m not even sure where to begin. Since it’s considered a secondary home (even though we don’t own a primary home), I don’t think we’ll qualify for anything. Advice please???
I figured it would be easiest to do this in list format. Here are the details:
- We rent our primary residence in California (we’ve been renting for the past 10 yrs).
- We purchased our 2nd home in Las Vegas - plans fell through to move there so we’ve been renting it to tenants the past 3 years (now an investment property although rent barely covers 1/2 the mortgage).
- Our tenants just moved out so now we have to cover the $1,200.00 rent plus start paying electric and water bills.
- We’re being forced out of where we’re living now because the owners are doing a short sale. The new place we’re renting is $300.00 more a month.
- We are current on our payments but fear we’ll have to miss payments soon since we have to come up with $1,500.00 more a month (we’ve been notified by our property management group that it’s been hard finding new renters unless we significantly lower the rent).
- I was just told that I may be put on part-time again due to the slow business.
- Do we have to be completely out of savings, etc, in order to qualify for anything?
Many thanks in advance…
The house we are living in right now we are renting from our landlord (we don’t own our primary residence). We were supposed to move to the Vegas house but was unable to due to personal reasons. My husband did try to look for a job there but the tech positions there don’t pay as much as they do here in Silicon Valley (I’d be working as well). And unfortunately, my sister and her family are living with us right now so whatever they can repay us is all that we can get from them. We definitely didn’t buy the Vegas house as a means to make a quick buck. It’s been five years and the rent didn’t cover half the mortgage.
Ibu: We did it as a secondary residence since we couldn’t move in right away. After a year, we started renting it out. It was never claimed as a primary residence.
Honestly even being broke will not help you with investment property. People make bad investments all the time, with real estate, commodities, stocks, you simply eat your loss, the tax payers are not going to eat it for you.
The best you can hope for would be a deed in lui of foreclosure.
June 22nd, 2010 at 4:27 am
No one here is psychic, but in general, no.
Wait..are you telling me you own a home but rent your primary residence? Go live in it if you can.
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June 22nd, 2010 at 5:08 am
You won’t qualify because both properties would be considered "Investment property" since you do not live in them.
Is there any way you could move back into one of the 2 homes you own?
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June 22nd, 2010 at 5:44 am
In order for a Mod or a short sale, you must be currently behind on your payments. You could refinance if you have equity. Since you were basically using these properties as income properties, there is not much help for you. The intent of the modification programs is to help keep people in their homes, NOT to help people who were looking to make a buck and are in over their heads. That is chalked up to making a bad investment….similar to asking for help because the stock market went down and your retirement is 50% of what is was a few years ago. Taxpayer money and bailouts is not designed to help out landlords who cannot find tenants to cover their mortgage payments and their own living expenses.
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June 22nd, 2010 at 5:53 am
No way you qualify for HAMP (mortgage modification program). That only applies to owner-occupied, and you would have to have lived in the property at least 2 - 3 years to convert it from investment/income property to primary residence. You don’t want to deal with HAMP anyway. Of the millions who have applied, only about 180,000 have made it into and through the probationary period. Of those who have survived that mess, over half have wound up in foreclosure within 6 months, and over 75% have wound up in foreclosure within 9 months. This just makes everything worse! Forget it!
Refi: terrible trouble trying to refi. Especially for income property. You say you planned to live there originally, so did you claim this was to be primary residence, owner-occupied property? Then you have a big problem now. If you did not originally purchase this property with an income-property type of mortgage, you have to now, which means a huge cash injection until you finance no more than 60-70% of current appraised value. Plus, of course, higher interest rate on non-owner occupied property, & fees, etc, of refi.
You won’t qualify for anything with zero income and zero assets and zero savings. Either move into the LV house, eat your losses on a rental, or try to sell it in a very glutted and very difficult market.
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June 22nd, 2010 at 6:21 am
No short sale or mod. on investment property. If you qualify you can refinance though. Good luck!
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24 years mortgage lender.
June 22nd, 2010 at 6:32 am
Honestly even being broke will not help you with investment property. People make bad investments all the time, with real estate, commodities, stocks, you simply eat your loss, the tax payers are not going to eat it for you.
The best you can hope for would be a deed in lui of foreclosure.
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June 22nd, 2010 at 6:58 am
I’d recommend checking out our site for refinancing options and rates, http://bit.ly/a7q1×7. Don’t hesitate to contact us for more information and advice.
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http://bit.ly/a7q1×7
June 22nd, 2010 at 7:12 am
You might be able to talk to someone about refinancing, but that is more than likely your best and only option available to you.
Doesn’t look like this Vegas property would qualify for a short sale or loan modification.
Worst case scenario - you would have to swallow this mistake and go on. We live and learn, but don’t let it get you down. Some of us have been here at one time or another, especially in the last few years. Wish you the best!
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