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.
Hi SandR!
Welcome to forums!
You can apply for a short sale in order to get rid of the property and the mortgage. However, you will have to prove your financial crisis to the lender in order to get qualified for the short sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can apply for a short sale in order to get rid of the property and the mortgage. However, you will have to prove your financial crisis to the lender in order to get qualified for the short sale.
Feel free to ask if you've further queries.
Sussane
I am also in the same situation! I am current, income has actually increased but I am looking to purchase a bigger home and CDA seems to prohibit renting. My bigger concern is that they do not offer its customers an opportunity to take advantage of any of the programs that are out here. I just sent an email to the head of CDA, Maryland's Governor, Lt. Governor, and the County Executive's office. We will see how this goes.
Hi Bonironi!
Welcome to forums!
Thanks for sharing this with us... Do keep us posted what reply you received regarding the letter that you sent them.
Sussane
Welcome to forums!
Thanks for sharing this with us... Do keep us posted what reply you received regarding the letter that you sent them.
Sussane
Hi Guest!
Welcome to forums!
What unique situation did he inform you about? Please explain.
Sussane
Welcome to forums!
What unique situation did he inform you about? Please explain.
Sussane
I have decided to walk away from my cda loan in January 2013. In Baltimore and can't stand the issues with crime and grime here. The city doesn't care about communities, so I'm leaving. My house is 6.5% rate and 60,000 underwater with MD CDA and will not ever be favorable again without more investment in the home and community turns better( not happening). CDA is a scam, they should allow streamline refi on FHA insured loans.
Hi AllenBb,
Thank you for sharing your opinion about CDA with us. :)
Thank you for sharing your opinion about CDA with us. :)
I had no idea there were so many other people out there with the same issues that i was/am having. i bought at the peak of the market and dont think i am upside down too bad but i just recently bought my second home. I moved right out and rented my cda house. i have been renting for nearly a year now and never hear a peep from anyone about it. i want to refinance but i think i better not stir up anything with trying to refi. just walk away.. there are no cda police... as long as you pay they dont care at all.. good luck
Thanks for sharing your opinion, Guest!! :)
I was under the impression that we had to first pay back the $5000 dollars we got from the state in the process before we were allowed to make any profit on the property. So if you are renting to someone else and not charging more than your mortgane, does this apply?
If you're not making any kind of profit, then I don't think you will have to pay back that $5000.
Sometime this summer HARP 3.0 will be put in place to assist those with underwater CDA loans
Thanks for the info!! :)
A year ago I applied for a mortgage loan to buy a new property with the condition that I'd rent out my current condo (with CDA loan) and was told that I couldn't get a new loan unless I could show rental income on my current property for one year... which makes no sense because I live there. How can I rent it? Did anyone else have this experience? So now I'm stuck like the rest of you. Who knew?
Hi cole,
Well, that's quite strange!! I will suggest you to contact other lenders and apply for a loan. Check out what they have to say in this regard.
Well, that's quite strange!! I will suggest you to contact other lenders and apply for a loan. Check out what they have to say in this regard.