Posted on: 15th Oct, 2010 03:28 pm
so here is an overview of my situation. i have a mortgage that was obtained approximately 4 years ago through maryland’s cda/more-home-for-less program. unlikely many unfortunate souls who i see posting on here (my heart goes out to all of you in far worse shoes than i), i am actually not in any danger of foreclosure or losing my home. i have a stable full time job (have been here about 3 years) and have paid my mortgage on time since i have owned the home. my house (condo) is indeed upside-down on the mortgage, but only by about 15k (condo is worth around 170k now, mortgage currently at about 186k), which in the world of mortgage isn’t much at all.
the problem is i am looking to move away to the other side of the country for personal reasons (new job, boyfriend, etc.) in about 1 year. i want to keep the house, but of course rent it out. the problem is cda mandates that the original owner occupy the home forever, period. as in no matter how long you have lived there, you can’t ever rent it with a cda loan (i had no idea this was the case until recently). in addition, my home does not qualify for the 125% remortgage program under obama’s program because it’s not held by freddie mac or fannie mae, but rather bond-held (as i understand it, but i might be wrong).
there are other good and bad sides to my current financial situation otherwise. the good side, as aforementioned, is i am not behind on my mortgage, and i have a stable job. i also have a good amount of spare cash in savings in the bank. i also have an excellent credit score (not a single late payment of any kind on record for anything). the bad news is i have my fair share of credit card debt and student loans which i am working to pay down, which may hinder my ability to refinance (though i am not at all behind on either).
i am wondering what the best option is. i called my mortgage-holding company (they are a sub-servicer, so they don’t refinance loans, only modifications to existing ones in cases of hardship), and they said there is no way to get a cda loan to allow for renting unless i can file a hardship letter which gets approved by the md department of housing and community development, and they can then put a waiver on my loan that allows me to rent it out. the problem is, until i actually move away, i don’t know how i could file a hardship at this point since my financial situation hasn’t really changed for the worse yet. in addition, if i wait to actually move away, i would be stuck fixing up the condo to rent and then having it stand vacant until i (maybe) get approved for a rent waiver, and if i get denied, i am really screwed, as i would be forced to stop paying on it, and likely lose the home all together.
the only other option i have is to refinance or sell (i have no desire to sell, and likely couldn’t in this climate anyway). i am wondering if there is any lawyer/non-profit/entity out there that could help me refinance with another company so after living there 1 year, i could do what i wanted with it. i don’t consider it rental property because i will be moving back within a few years and living in it at that time, so the renting is temporary.
i have done a good amount of browsing on these forms, and see many references to places like naca, hopenow, etc., but i seems like they all specialize in foreclosure-bound properties and working with people who are unemployed, etc. since my situation is quite different, i am trying to fish for what the best option is. my hope is that i can simply get the renter waiver based on hardship and avoid a full refinance, but i am not sure what hardship i would need. if that is out, then i need to refinance, but i need to know how to get started and whom to do it with (safely and effectively).
the plus side is as noted, i have money in the bank and can likely afford a lawyer if i can find one who specializes in cda loan mods (depending on what they charge and assuming they are reputable).
any recommendations or help anyone can offer is much appreciated. i know my situation is complicated.
the problem is i am looking to move away to the other side of the country for personal reasons (new job, boyfriend, etc.) in about 1 year. i want to keep the house, but of course rent it out. the problem is cda mandates that the original owner occupy the home forever, period. as in no matter how long you have lived there, you can’t ever rent it with a cda loan (i had no idea this was the case until recently). in addition, my home does not qualify for the 125% remortgage program under obama’s program because it’s not held by freddie mac or fannie mae, but rather bond-held (as i understand it, but i might be wrong).
there are other good and bad sides to my current financial situation otherwise. the good side, as aforementioned, is i am not behind on my mortgage, and i have a stable job. i also have a good amount of spare cash in savings in the bank. i also have an excellent credit score (not a single late payment of any kind on record for anything). the bad news is i have my fair share of credit card debt and student loans which i am working to pay down, which may hinder my ability to refinance (though i am not at all behind on either).
i am wondering what the best option is. i called my mortgage-holding company (they are a sub-servicer, so they don’t refinance loans, only modifications to existing ones in cases of hardship), and they said there is no way to get a cda loan to allow for renting unless i can file a hardship letter which gets approved by the md department of housing and community development, and they can then put a waiver on my loan that allows me to rent it out. the problem is, until i actually move away, i don’t know how i could file a hardship at this point since my financial situation hasn’t really changed for the worse yet. in addition, if i wait to actually move away, i would be stuck fixing up the condo to rent and then having it stand vacant until i (maybe) get approved for a rent waiver, and if i get denied, i am really screwed, as i would be forced to stop paying on it, and likely lose the home all together.
the only other option i have is to refinance or sell (i have no desire to sell, and likely couldn’t in this climate anyway). i am wondering if there is any lawyer/non-profit/entity out there that could help me refinance with another company so after living there 1 year, i could do what i wanted with it. i don’t consider it rental property because i will be moving back within a few years and living in it at that time, so the renting is temporary.
i have done a good amount of browsing on these forms, and see many references to places like naca, hopenow, etc., but i seems like they all specialize in foreclosure-bound properties and working with people who are unemployed, etc. since my situation is quite different, i am trying to fish for what the best option is. my hope is that i can simply get the renter waiver based on hardship and avoid a full refinance, but i am not sure what hardship i would need. if that is out, then i need to refinance, but i need to know how to get started and whom to do it with (safely and effectively).
the plus side is as noted, i have money in the bank and can likely afford a lawyer if i can find one who specializes in cda loan mods (depending on what they charge and assuming they are reputable).
any recommendations or help anyone can offer is much appreciated. i know my situation is complicated.
I also have a CDA bond loan and after signing papers have learned how awful it is. I'm trying to do a short sale with Bogman Inc ad the lender and they are asking for promissory notes amounting to thousands and thousands of dollars. I've lost one buyer and possibly will lose the current buyers. THIS IS NOT A LOAN I WOULD RECOMMEND TO ANYONE. This almost forces you into foreclosure.
We need to protest to the state of Maryland about this CDA Loan. Let's start a CDA loan sucks webpage!
Same situation as the rest of you guys... MD CDA loan, about 40k underwater, never been late on payments, family growing, this was a condo and we needed to move....So we did. We got a loan for another house and moved. We are renting the condo. The new mortgage company didnseem to care about CDA. Our new loan is FHA and they didn seem to care about CDA restrictions. Their advice to us was to move because there areany CDA police out there that will track you down and tell you otherwise. As long as you keep making your payments, I think you will be ok. Here is what they risk if they force they take you to court, money. Why because they are struggling with the bigger issue at hand, and that is to collect money form the people who are making their payments.
Just move. Then rent it. MD CDA had this restriction because they wanted to keep investors out from the CDA program. That makes perfect sense, we all get it and understand whyhowever MD CDA did not account for the market to crash the way it did. We are not investors trying to profit from a ren fact, I am renting that condo as we speak and I am still losing. This is because my mortgage is $400 more than what I collect in rent each month. Now am I a bad person for violating the CDA restriction?
Doscuss it, doworry about it, just move.
Just move. Then rent it. MD CDA had this restriction because they wanted to keep investors out from the CDA program. That makes perfect sense, we all get it and understand whyhowever MD CDA did not account for the market to crash the way it did. We are not investors trying to profit from a ren fact, I am renting that condo as we speak and I am still losing. This is because my mortgage is $400 more than what I collect in rent each month. Now am I a bad person for violating the CDA restriction?
Doscuss it, doworry about it, just move.
Thanks for sharing your opinion, Guest!! :)
I read the FAQs referenced above and they say the loan is available to an owner-occupant, but did not see the word "forever." Is there more definitive wording listed elsewhere? And is this restriction in the loan documents that you sign?
(I do not have a CDA loan, but am trying to help a friend who does.)
(I do not have a CDA loan, but am trying to help a friend who does.)
Hi Guest,
I don't think any such word will be listed in the mortgage docs. Nevertheless you can go through the loan doc once again to find any such word or contact your lender and take his opinion in this matter.
Thanks
I don't think any such word will be listed in the mortgage docs. Nevertheless you can go through the loan doc once again to find any such word or contact your lender and take his opinion in this matter.
Thanks
For those still looking for help here, I have to agree with "G" from a few posts prior. Just rent out the place, and don't worry about the CDA people. However, if you badger them enough, the possibility does exist that you can eventually get an email from them that says they won't accelerate your loan if you stay current. I was in the same situation. I bought a house with CDA in early 2007. It is now $120k underwater on a a $280k loan. There is no way I could sell if for at least 15 years. My wife also owned a home with an owner occupant requirement when we got engaged, so one of us had to move. I kept harassing CDA via email until someone finally told me in wriing, that as long as I stay current, they won't come looking for me. I get annual letters from Bogman now, asking why I don't live at the property. I just have to call them, tell them it is still significantly underwater, so I can't sell, and they reset it for another year. Being a landlord is annoying, and I also come out of pocket $400 each month, but it beats foreclosure and I wont qualify for bankrupcy to avoid any deficiency lawsuit later on. Your money is way more important to them than whether or not you actually live in the house.
Thank you for sharing your experience with us in the forums!! :)
We relocated from WY to Sc for work and wrote a letter stating 'hardship' although we are scraping through financilly and have never been late on a pyt, our 'hardship' was paying the mortgage and our rent in SC on 1 income. WCDA agreed to let us rent our house for 6 months and just reapproved us to rent for another 6 months, it wasn't a big deal to write the letter, seems just like an exercise in paperwork, we also had a friend who rented out her home in Idaho for 3 years, just kept getting a new letter every 6 months....
Welcome cece,
Thank you for sharing your experience with us!! It's feels great to note that your lender had been so helpful to you!! :)
Thank you for sharing your experience with us!! It's feels great to note that your lender had been so helpful to you!! :)
Hi Vicky!
Welcome to forums!
As your property is underwater, you won't be able to refinance the mortgage. You can, however, apply for a loan modification.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As your property is underwater, you won't be able to refinance the mortgage. You can, however, apply for a loan modification.
Feel free to ask if you've further queries.
Sussane
Thank Curious Guy and Another Guest for that information. I too have a CDA loan and I am looking to purchase a home because my family has increased in size and the area has been going down in terms of crime. My condo is underwater by $180K and I am current on my payments so the only option I have is to rent it out and I heard about the so-called "rental restriction" with CDA. I will be definitely emailing them and let them know I have to rent out...I'll be damn if I stay any longer.
I emailed everyone I could at DHCD including all the Executives and the Maryland governer asking why CDA was unwilling to help its customers and would not participate in any of the Federal goverment programs. They mailed me a letter within a week that basically said, in a nut shell, we would rather eat glass then help anyone refinance their loan.
They cant risk lowering their bond ratings and blah blah blah. These are are some of the most greedy people in the business and they are a government program! Unless the Federal goverment comes up with a program forcing them to help, CDA will continue to spit in their customers faces. It is literally sickening how disgusting of a program this is.
Here is the contact information for the CDA Exectutive Director
Frank B. Coakley, Executive Director (410) 514-7410; 1-800-222-3919 (toll free)
e-mail: coakley@mdhousing.org
They cant risk lowering their bond ratings and blah blah blah. These are are some of the most greedy people in the business and they are a government program! Unless the Federal goverment comes up with a program forcing them to help, CDA will continue to spit in their customers faces. It is literally sickening how disgusting of a program this is.
Here is the contact information for the CDA Exectutive Director
Frank B. Coakley, Executive Director (410) 514-7410; 1-800-222-3919 (toll free)
e-mail: coakley@mdhousing.org
That is good to know that I can write a letter to Bogman to get permission to rent. I took the risk and have been renting my condo, also under a CDA loan, for the past four years. Like others, I am also paying about $400 out of pocket so I am looking for other options - $400/month times four years is a lot of money...Are there any other options beside foreclosure? I am willing to take a delinquency credit hit but not a 7-year foreclosure credit hit. Any suggestions would be much appreciated.