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.
Cole,
Navy federal will give you a long without a year of rental history, they will want to see a signed lease ready though so when you move out they know someone is already going to move in. Thats how I did it. Although now Im worried I will never be able to refi my CDA loan because the house is no longer owner occupied. CDA loans suck so bad. For a state run program, I cant beleive they treat people like this. I dont know why our congressman and state reps wont get involved. CDA would rather you forclose than refi your loan. How can they operate like this?
Navy federal will give you a long without a year of rental history, they will want to see a signed lease ready though so when you move out they know someone is already going to move in. Thats how I did it. Although now Im worried I will never be able to refi my CDA loan because the house is no longer owner occupied. CDA loans suck so bad. For a state run program, I cant beleive they treat people like this. I dont know why our congressman and state reps wont get involved. CDA would rather you forclose than refi your loan. How can they operate like this?
Sorry, that meant to say Navy Federal Credit Union will give you a loan without a year of rental history.
Darn autocorrect.....
Darn autocorrect.....
Hello everyone!
As other posters have stated, I can't believe how many of us are facing the same issues, and none of our legislators have stepped in to help. I was planning on writing letters to my State delegates in order to attempt to get some relief. Here are the details of my situation:
Purchased condo in 2007 with CDA at 6.5%
Condo is currently underwater $80,000
Just got engaged and need to move into a larger home to start family
I was thinking of referring this issue to one of the investigative journalist teams to see if they can look into the program and try to expose how fraudulent and unwavering the State has been when enforcing CDA loans. Has anyone had any luck contacting representatives, lawyers, or investigative journalists? I feel helpless because I have no hardship, but really need to move.
Thanks for you input.
Brian
As other posters have stated, I can't believe how many of us are facing the same issues, and none of our legislators have stepped in to help. I was planning on writing letters to my State delegates in order to attempt to get some relief. Here are the details of my situation:
Purchased condo in 2007 with CDA at 6.5%
Condo is currently underwater $80,000
Just got engaged and need to move into a larger home to start family
I was thinking of referring this issue to one of the investigative journalist teams to see if they can look into the program and try to expose how fraudulent and unwavering the State has been when enforcing CDA loans. Has anyone had any luck contacting representatives, lawyers, or investigative journalists? I feel helpless because I have no hardship, but really need to move.
Thanks for you input.
Brian
Well, haven't heard much in this regard!!
I dont know why my last post was deleted, but Jamie Smith Hopkins from the Baltimore sun has done a story on how frustrating CDA can be for homeowners. Try contacting her, you can find her info easily. I emailed her a while back and she was interested in a doing a follow up story. She seemed very sympathetic to our plight. I didnt want to be interviewed but maybe one of you guys would be more willing.
Hopefully this post wont get deleted too......
Hopefully this post wont get deleted too......
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