Loan Modification of a Former Investment Property with B of AI own two properties one purchased in 2005 as a primary residence and one in 2007 as a rental property with 2 units that would eventually become my primary residence. The 2007 property has a $490,000 interest only mortgage at 7.5% and is well underwater. The 2005 property has a $130,000 mortgage which thankfully reset down in March and is now at Libor + at 2.35% for the next year.Over the past few years both my income as a small business consultant and the rental income decreased dramatically. Earlier this year, a vacancy in one of the rental units and the prospect of earning more by renting the 2005 property prompted me to move into the 2007 property as an owner occupied unit.This helped somewhat, but I have only been able to stay current by draining my saving and borrowing from family. This past month I was able to secure a full-time job as well as some side contract work, but my payment is still about 50% of my gross income (including rents.) Without other changes, reducing the interest rate to 4.3% would make interest payment, taxes and HOA 31% of my gross incomeI have requested and received a HAMP packet from BofA, but am wondering if the fact that the property was originally an investment property will disqualify me from the federal program or if there are any other potential pitfalls people see.Thanks for your input!October 28 2010 - Jackson11YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.