Profile picture for flaxseed

Freddie Mac has mortgage. We moved and rented it. It's now worth less than what we owe-we. refi-help

Need a no cost refi through the new administrations plan. We are not living in the home but rent it out. Can't sell it because we owe more than what it's currently worth.
  • April 10 2009 - Fauntleroy
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Answers (8)

You may read "investor" in a different way, Jay, but it's a fairly straight forward definition for a lender.  If you own a home that you don't live in, they consider you an investor.  It's tough on someone in Terri's situation, but that's just the reality of how the owner will be viewed by the bank.
  • April 12 2009
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Profile picture for jaypfeif11
I think you all missed the point.  He is not an investor, but someone who had to move out of his primary residence for one reason or another and is now renting it out to try and keep afloat.  In my opinion this does not make him an investor.  I am in the same situation, I had to relocate for a job and am now renting a place in my new location, but I still have my house in my previous city and have to rent it out because I am so upside down on it right now I can't afford to sell it.  Does that make me an investor?  I would assume it does in the eyes of the government, but I promise you its only losing me roughly $600 a month...some investment! 

Anyone have thoughts on how or what to do in this situation?
  • April 11 2009
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Terridg-

Unfortunately, the moment you moved out and rented it, the rules on qualifiying for loans changed drastically.  Non owner occupied loans have always been more difficult to obtain and our government has turned the screws on them even more lately enforcing more limitations that have forced some of the investors onto the market unnessesarily. 

I have done the short sales that Stephen speaks of but I would consider them a final and last resort because of some of the ramifications to your credit.
  • April 11 2009
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You can sell it but you need to know how to properly market and negotiate a no deficiency short sale.  If you do not know how I can put you in touch with a RE Agent who has done dozens of them. 

Goverment plans do not change willingness mitigate losses in any situation that made sense. 
  • April 10 2009
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Profile picture for flaxseed
not an investor- this started as our primary. Have you noticed how many people are giving those who are having difficulties paying their mortgage, advice to "rent it out" ?....- well - Now are they considered investors?
  • April 10 2009
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Most of the government bailout plans show little sympathy or help for investors.  You could short sell it but this will affect your credit and the bank is going to look at any other assets you may own.


  • April 10 2009
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Definitely going to be tough.  Forget the no-cost part, just look for any option you can find with your current lender.
  • April 10 2009
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Investors have much tougher mountain to climb for any REFI help... call you servicer... especially if the equity is zapped... Who knows.. but the open market is no place for eqyuityless investors these days.  Good luck.
  • April 10 2009
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