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Originally Posted by Harasboa  I have a rental property (that is upside down and rental income doesn't cover mortgage) and a primary residence. BOA phone rep denied me over the phone after giving her my income and expenses. She stated that I didn't qualify for Making Home Affordable Program because of my rental property. Can this be? |
You are trying to modify your principal residence, not your rental property, correct?
If you are trying to modify your investment property, then MHA definitely does not apply.
If you are trying to modify your principal residence, then you should still be able to get relief from the MHA plan. However, if your back-end DTI (which includes your negative cash flow from the investment property) is too high, then this could be sticking point. But my understanding is that if your back-end DTI is above 55%, this requires you to agree to HUD debt management counseling. It does not eliminate you from consideration of modification of your principal residence.