New/Revised HAMP For Rental Properties?

[walkin]

Everything I read in here about HAMP states that they will get your mortgage payment to 31% of your income, on your Primary Residence. I have not seen any discussion about the new HAMP (thanks Obama) that now includes rental properties.


Has anyone filed the new HAMP app (7 pages, I think), and had any feedback or success? Obviously, they aren't looking to get the payment to 31% of your income, because it is your rental house. What are they looking for?


If no one knows, can anyone guess what kind of numbers "they" are looking for, in order to approve you for a HAMP on your rental property?



Just trying to figure out which "wheel" to get on (wink wink)

[Cat Damiano]

walkin,



There has already been numerous discussion threads on this subject on the forum if you go to the search tab at the top you will get the threads to see if anyone has applied.

Here is one;

New HAMP guidelines

[walkin]

I believe I had already read that thread, which got off track a few times, and I don't remember reading about any people who had actually filed for HAMP, with the new RMA and guidelines. (the revised RMA is much different than the old/standard RMA). I guess it is just too new, so there aren't too many folks who have submitted the new RMA, and received any feedback yet.

To clear up any confusion, yes, I understand that the new Hamp is designed to offer assistance to people who are having problems paying the mortgage on their rental property, whereas the "original" Hamp was for primary residence only. I assume there will be no 31% guideline, because most likely you are paying 31% of your income to live in another house.

[hamprental]

I have applied for HAMP 2 for a rental property. So far, it has been extremely frustrating. BOA included the gross rental value in my total gross household income for purposes of determining modified loan amounts based on 31% of my income. The net rent for my rental property is -1300/month. Based on this artificial amount, they slightly lowered my interest rate for 5 years, which saves me about $300/month. I will still have a deficit of $1000/month for the first 5 years, and then more after that. I have disputed their calculations and am waiting for a response. I am current on my mortgage, but it has completely depleted our savings. I think if they can't recompute based on the REAL numbers, I will be walking away.

[Evan Bedard]

I have applied for HAMP 2 for a rental property. So far, it has been extremely frustrating. BOA included the gross rental value in my total gross household income for purposes of determining modified loan amounts based on 31% of my income. The net rent for my rental property is -1300/month. Based on this artificial amount, they slightly lowered my interest rate for 5 years, which saves me about $300/month. I will still have a deficit of $1000/month for the first 5 years, and then more after that. I have disputed their calculations and am waiting for a response. I am current on my mortgage, but it has completely depleted our savings. I think if they can't recompute based on the REAL numbers, I will be walking away.

Welcome and thanks for joining hampremtal.

I'm sorry to hear the offer still left a major deficit in your monthly payment. What terms came along with the modification (ie interest rate, length of term, etc)?

[Cat Damiano]

I have applied for HAMP 2 for a rental property. So far, it has been extremely frustrating. BOA included the gross rental value in my total gross household income for purposes of determining modified loan amounts based on 31% of my income. The net rent for my rental property is -1300/month. Based on this artificial amount, they slightly lowered my interest rate for 5 years, which saves me about $300/month. I will still have a deficit of $1000/month for the first 5 years, and then more after that. I have disputed their calculations and am waiting for a response. I am current on my mortgage, but it has completely depleted our savings. I think if they can't recompute based on the REAL numbers, I will be walking away.

Welcome to the forum and thank you for joining..........

The way that the rental income is supposed to be calculated for the purpose of HAMP Tier 2 when checking eligibility to modify a rental property is as follows, try doing the calculations using this and see what the payment should be versus what they are calculating;

Modification of Loan Secured by Rental Property:

A borrower seeking to modify the mortgage loan on his or her rental property must provide evidence of that income, which is generally documented on IRS Schedule E (Supplemental Income and Loss) of the borrower’s tax return for the most recent tax year. When Schedule E is not available to document rental income because the property was not previously rented, servicers may accept a current lease agreement and bank statements or evidence of damage deposits. All net income or loss from a rental property that is security for the loan being modified as well as income from any other rental property owned by the borrower must be documented and included in the calculation of the borrower’s gross income.

The monthly net income or loss on a rental property to be calculated for HAMP Tier 2 purposes should be 75 percent of the monthly gross rental income, reduced by the monthly principal and interest payment plus 1/12th of annual real property taxes, annual insurance premiums and annual homeowners’ associations dues, if applicable (PITIA). If 75 percent of the monthly gross income of a rental property securing the mortgage loan being evaluated for modification under HAMP Tier 2 is equal to or greater than the pre-modification PITIA of the rental property, the servicer must verify and document the cause of the borrower’s hardship as delinquency alone is not considered a hardship.