Loan Modification Forum - LoanSafe.org - View Single Post - Non-profit w/ 5 prop. for disabled adults

Safford · 10-21-2008, 11:23 AM

I had posted previously, but wanted to start one post that covers everything.

Here are some facts:

1) We are a non-profit providing housing for disabled adults

2) We took advantage of the easy doc loans to acquire properties for our clients

3) At the time of purchase our credit scores were in the 600's and income was not solid

4) Now credit scores are in the 700's. As far as income, with State and local budget cuts we were hammered financially. Unfortunately, we had to lay people off and cut spending dramatically. However, now that we have gone through that painful process, our income is solid and consistent.

5) Property values have dropped between 25%-30%, so all the loan balances are more than the values of the properties. So, even with good credit and income we cannot refinance.

6) Hope Now does not help people with rentals, so I am not sure where to turn for solid advise.

7) interest rates on 3 of the mortgages have increases, with payment increases of approx. $1,500 a month.

8) Although we have been able to maintain the mortgage and insurance payments, our property taxes are over one year delinquent.

9) The bottom line, if we can get our property taxes paid current and get a loan modification that would reduce our payments minimally including an escrow account for taxes, we will be in decent shape.

10) As stated in my previous post, our loans are with ASC, AHMSI, Indymac Bank, and Select Portfolio Servicing.

Concerns/Questions:

1) Do we need to let the mortgages go into a delinquent status before they will really deal with us?

2) Should we get legal representation? The process seems fairly straight forward: hardship letter, income, and bank statements. I'm wondering if I should provide comps that show the current values in the neighborhood.

3) While our credit is good, do we try to get into new properties at the current reduced values and just turn our existing properties back to the bank? I have some ethical issues with this, but am considering all options.

4) We've been able to negotiate some new contracts and diversify our income sources. This new revenue is do to start coming in Jan. 2009. How hard do we promote this? Even with the new income we will not be able to get caught up on property taxes and cover increase mortgage payments.

5) Do I have to accept that fact that our credit is going to get messed up through this process? I want to minimize this if possible.

5) Are there other things I should be considering?

Whomever started this forum, thank you very much. I've been struggling with how to handle this. I am responsible for a group of people that aren't able to care for themselves and I need to do everything possible to keep them safe.

Thanks again...

10-21-2008, 11:23 AM	#4 (permalink)
Safford Senior Member Join Date: Oct 2008 Posts: 52 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Non-profit w/ 5 prop. for disabled adults - Need Help I had posted previously, but wanted to start one post that covers everything. Here are some facts: 1) We are a non-profit providing housing for disabled adults 2) We took advantage of the easy doc loans to acquire properties for our clients 3) At the time of purchase our credit scores were in the 600's and income was not solid 4) Now credit scores are in the 700's. As far as income, with State and local budget cuts we were hammered financially. Unfortunately, we had to lay people off and cut spending dramatically. However, now that we have gone through that painful process, our income is solid and consistent. 5) Property values have dropped between 25%-30%, so all the loan balances are more than the values of the properties. So, even with good credit and income we cannot refinance. 6) Hope Now does not help people with rentals, so I am not sure where to turn for solid advise. 7) interest rates on 3 of the mortgages have increases, with payment increases of approx. $1,500 a month. 8) Although we have been able to maintain the mortgage and insurance payments, our property taxes are over one year delinquent. 9) The bottom line, if we can get our property taxes paid current and get a loan modification that would reduce our payments minimally including an escrow account for taxes, we will be in decent shape. 10) As stated in my previous post, our loans are with ASC, AHMSI, Indymac Bank, and Select Portfolio Servicing. Concerns/Questions: 1) Do we need to let the mortgages go into a delinquent status before they will really deal with us? 2) Should we get legal representation? The process seems fairly straight forward: hardship letter, income, and bank statements. I'm wondering if I should provide comps that show the current values in the neighborhood. 3) While our credit is good, do we try to get into new properties at the current reduced values and just turn our existing properties back to the bank? I have some ethical issues with this, but am considering all options. 4) We've been able to negotiate some new contracts and diversify our income sources. This new revenue is do to start coming in Jan. 2009. How hard do we promote this? Even with the new income we will not be able to get caught up on property taxes and cover increase mortgage payments. 5) Do I have to accept that fact that our credit is going to get messed up through this process? I want to minimize this if possible. 5) Are there other things I should be considering? Whomever started this forum, thank you very much. I've been struggling with how to handle this. I am responsible for a group of people that aren't able to care for themselves and I need to do everything possible to keep them safe. Thanks again...