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Answers (10)
- elanas
- Contributions:4
Thanks for all the advise. I think I am going to put in for loan modification on both homes and see what happens. The worst they can say in no. I'll keep updates on this issue with how case is progressing. If anyone else has advise for me it is greatly appreciated. By the way the lender that currently holds the loan on the investment property is called First Horizon.this was not the original lender. Also Chase now owns mortgage on our primary residence which we have a VA loan with them.
Has anyone heard of streamlining va loans? how do they work? do I pay to streamline to current rate? We have a 6.0% 30 yr fixed on primary residence.
Has anyone had experience with loan modification with this First Horizon group?
Has anyone heard of streamlining va loans? how do they work? do I pay to streamline to current rate? We have a 6.0% 30 yr fixed on primary residence.
Has anyone had experience with loan modification with this First Horizon group?
- Orin Sherman MBA
- Contributions:53
I have a few clients and friends that have had similar situations. I find that various lenders give differing responses so I agree with contact the lender. If they are tough or in business we call that smart they will place liens and do whatever it takes to get the money owed them. If they allow a refi, expect them to use your assets or equity in your first home to help do that. Some people are professionals with handling lenders with mods and tthat could be something you try. I hear some may not be on the up and up but people say that about politicians and lawyers yet we still have them in abundance. If you dont' mind sharing your distressed situation, please let me know how it works out or if you need help or questions I will try to help. We are all in this so we might as well stick together. Good luck!
- Jim Ventura, "rktekt99"
- Contributions:32
I agree with Mr. Justin Sheftell's comment - you might be able to get a loan modification in that scenario. Especially if the lender will agree to move some of the money owed to a "silent second" (we were able to accomplish this on one Wells Fargo loan, turned down on another at the same company, but time is passing and making these more important to resolve BEFORE they become a problem). The silent second option helps them maintain close to a market rate on the remainder of the balance while getting your ratios in line - technically not losing any money on their books - we've had some mixed success with non owner occupied properties. If more would make attempts at this, I think they'd find a solution - it really is a win-win for all parties. I hope this works out for you!! Don't kill that excellent credit if you can avoid it! Write or call for details -
- elanas
- Contributions:4
no there is no equity in home we currently live in either as we bought it not to long ago. I will be working on requesting to get loan modified. However does anyone know if we did walk on first home could they put a lein on the home we live in, or sue us? also would like to mention we are a military familiy and family renting home is military as well and my husband and other renter just got back from a year deploymnet to Iraq..so technically..from what I was told they can not evict the denant for up to one year. Is that true.
We have had one late payment. what is best way to present case to mortgage company. Only my husband is currently working
We have had one late payment. what is best way to present case to mortgage company. Only my husband is currently working
The refi won't occur with the current loan to value, so that's out.
The cash flow is negative at $1,000 per month and your savings is dwindleing becuse of the negative cash flow.
From my perspective it doesn't seem there is an immediate viable solution to the existing situation.
You can try calling the Note holder and inform them you are in "Imminent Default" and see if they would be will to modify the loan to make the $1,400 in rental income cover the mortgage payment, including taxes an insurance.
If their unwilling to work with you, I may be time consider stop putting good money into an untenable investment.
The cash flow is negative at $1,000 per month and your savings is dwindleing becuse of the negative cash flow.
From my perspective it doesn't seem there is an immediate viable solution to the existing situation.
You can try calling the Note holder and inform them you are in "Imminent Default" and see if they would be will to modify the loan to make the $1,400 in rental income cover the mortgage payment, including taxes an insurance.
If their unwilling to work with you, I may be time consider stop putting good money into an untenable investment.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3431
Refinancing the rental is out of the question. I disagree about modification. If you explain your situation to the servicer and tell them you are not afraid to walk, it is in their interest to provide you a payment you can better afford.
If they decline, they stand to lose in excess of 200,000. If I owned that 400,000 loan, I'd be happy to lower your payment 500 instead of losing 200,000 or more.
If you stop paying, lender has 6 months before they foreclose, then they have to evict the tenants, possibly fix up the property, pay two agents to sell it, they'll be out 250,000 easy before all is said and done. Modification is in the interest of all parties in my opinion. Call them and ask about it.
If they decline, they stand to lose in excess of 200,000. If I owned that 400,000 loan, I'd be happy to lower your payment 500 instead of losing 200,000 or more.
If you stop paying, lender has 6 months before they foreclose, then they have to evict the tenants, possibly fix up the property, pay two agents to sell it, they'll be out 250,000 easy before all is said and done. Modification is in the interest of all parties in my opinion. Call them and ask about it.
- wetdawgs
- Contributions:26945
Walking from a second home while you have savings may mean they will come after your savings. You need to investigate your options very carefully.
A loan modification on a rental (investment home even if it was your first home) is not likely. You'd be asking the bank to subsidize an investment.
A loan modification on a rental (investment home even if it was your first home) is not likely. You'd be asking the bank to subsidize an investment.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Don't walk, RUN!
- elanas
- Contributions:4
No. We owe 390,000 and according to Zillow it's now only worth 199,000. We have not been late on payments. We would rather now "walk" on this home because we have excellent credit and some saving which is dwindilling fast considering our interest only payment is 2400/month and we are only able to rent it for 1400. We do not have equity in our current home either, but are not flipped. What options do we have besides "sucking it up" or "walking away from home" as several of our neighbors have done? Will the mortgage company even consider a loan modification on first home?
- wetdawgs
- Contributions:26945
Do you have equity in the rental?
I have two homes. First home I am renting and living in second. Can I refi the rental?
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