Posted on: 29th Jul, 2009 11:20pm
Your rental or the investment property may be causing financial problem for you. The payments that you are making on these properties may be too high or burdensome for you. Now, the obvious question that come to your mind is that is it possible to get approved for loan modification on your investment property. In case of primary residence, it is not difficult to modify the loan but however you have to meet the eligibility criteria. But in case of investment property it is not that much easy to modify the loan.
If you opt for the federally backed Home Affordable Modification Program (HAMP), then it is not possible to modify the loan taken against investment property. HAMP came into effect in 2009 and its aim is to rework the mortgage loans of the struggling homeowners. Another important feature of this program is that the loan must be taken against your primary residence. This implies that it would not be possible to modify loan taken against investment property through the government-backed HAMP.
It is however possible to modify the loan taken against your investment property in case you deal with the lender directly without taking any government assistance. If you are able to explain your financial hardships to the lender and if your lender is convinced, then you may be offered the chance to modify the loan taken against your investment property.
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I purchased an investment property 5+ years ago. It has taken much longer to subdivide the property than I thought. I am not about 4-6 months away from the subdivision, and once divided the lots are salable. As one large parcel with a small house, it's not. However, I have used up all of the HELOC to carry the proeprty and pay for the subdivision, and I'm about to run out of money. How can I get BofA to talk to me about a forbearance agreement or a temporary reduction of payments?
marion
welcome to mortgagefit,
In my opinion if you can show them that it is just a matter of 4-5 months through hardship letter, your problem might get solved.
but you need to convince them that the property will be saleble once it is subdivided.
keep in touch....
:arrow: :arrow: :arrow:
welcome to mortgagefit,
In my opinion if you can show them that it is just a matter of 4-5 months through hardship letter, your problem might get solved.
but you need to convince them that the property will be saleble once it is subdivided.
keep in touch....
:arrow: :arrow: :arrow:
You'll have to apply for a loan modification and inform the lender about your hardship. If the lender is convinced that you are going through a financial crisis, then only the lender would accept the modification. It would be totally the lender's discretion whether or not he would accept your request.
you can go for loan modification. discuss it with your lender
Hi there… I have two monthly mortgage payments – one for my primary property and the other one for the investment property. It is becoming difficult to pay off the loan on investment property. Can I get a loan modification the investment property?
May be you can get a loan modification. But you should note that there are no government programs to help you in this regard. It should be noted here that there is no Home Affordable Modification Program (HAMP) for investment properties. It will be completely the lender's discretion whether or not he will offer you a loan modification for your investment property.