FHA loan...can you get a mod?

[jeffo]

I have a loan on a property that the loan is 189K and the property is now worth about $155K. My income is being cut in half and I know i will not be able to make my payments starting next month. I havent gone late yet but it in envitable at this point. I have an FHA loan and I have heard that it is hard to get these modified. Does anyone know the story that can help? Also I would be interested in short selling the property if possible as well but I again heard becuase of the FHA loan the lenders arent willing to take the loss becuase they can be made almost whole becuase of the FHA insurance. Does anyone know the true story and help? Thank you.

[Moe Bedard]

jeffo,


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


For a modification FHA has their own set of guidelines........if you need help going through the process, you may want to speak with a HUD counselor for the modification options.............
Foreclosure Avoidance Counseling - HUD

You can also ask the counselor about what other options are available to you.....

[jeffo]

so Citi wouldnt make the decision it would be a HUD decision? I am also thinking of moving out of the property and moving in with my girlfriend to save money. Do you think that would be advisable since I have seen that a property that isnt your primary residence never seems to get modified?

[Moe Bedard]

The modification options are presented to homeowners that are in a hardship situations and occupy the property first.................some investors will not modify investment properties.............FHA may be one of them but I am not sure........

[jeffo]

I guess this is where I am getting confused. FHA isnt an investor right? They just insure the loan. So wouldnt i still need to speak with Citi? It seems to me to be much more cut and dry with regular mortgages but FHA since to have no clear cut answers. I will contact the HUD foreclosure people but ultimately it comes down to Citi if they wil modify or take a short sale right?

[Moe Bedard]

on an FHA loan in essence the government is the investor...............the loan is backed and insured by the government.............and Citi is just servicing the loan for FHA/HUD.
There are guidelines that are in place on FHA loans that the servicer would need to follow................

the reason why I suggested that you may want to speak with a HUD rep is because you indicated in your post that you fear it may be a difficult process.....


If you have not contacted Citi yet to see what the options are going to be........then you may want to do that first..............

CitiMortgage.com – Home Mortgage Loans - Retail Service: Hardship Assistance