Max number of rental properties for HAMP 2.0 mod...

[CamaroGuy]

Hi,

When I first read on here about HAMP 2.0 and rental properties, I understood that you could mod up to four rentals. However, when I read the guidelines the other night, it appeared that to even get a mod, the most you could own is four. Can someone clarify?

If it is a max ownership of four, then will this also cause a problem when I try to modify the mtg of my primary residence with HAMP, or would it only apply to the rentals? i.e. owning more than 4 rentals isn't also going to mess up doing HAMP on my primary residence, right?

Thanks!

[Evan Bedard]

Yes per the updated guidelines you cannot own more than 5 single family homes to qualify for assistance on one of your rentals. But this should have no affect on your primary mortgage and whether or not you can modify the loan..

Rental Property

A “rental property” is a property that is used by the borrower for rental purposes only and not occupied by the borrower, whether as a principal residence, second home, vacation home or otherwise (“rental property”). A rental property may be eligible for HAMP Tier 2 if:

- Two or more mortgage payments are due and unpaid (rental properties are not eligible for imminent default consideration);

- The borrower certifies that he or she does not own more than five single family properties;

- The term “origination date” refers to the date on which the loan was first originated (i.e., not the date a loan may have been modified).

- The rental property is currently occupied by a tenant as a principal residence or is vacant; and

- The borrower certifies in writing that he or she intends to rent the property to a tenant or tenants for at least five years following the effective date of any permanent modification and that he or she will make reasonable efforts to rent the property on a year-round basis if the property is or becomes vacant during such period. Notwithstanding the foregoing, during such five year period the borrower may sell the property, occupy it as the borrower’s principal residence, or permit any dependent, parent or grandparent to occupy the property as such party’s principal residence with no rent charged or collected.

[CamaroGuy]

Awesome, thanks so much for the information! Looks like I'll need to ask about in-house mods for the rentals, or wait to see if things change with later versions of HAMP.

[Evan Bedard]

No problem, this is kind of a strange guideline that they will not allow HAMP on a rental if the borrower has more than 5 single-family residences.

[Merchnyc]

Hi there,
Entering into a trial payment plan with BofA and now I want to apply for Hamp 2 mod on our second home in CA that my son is living in. He is not renting, just giving me assistance for our monthly expenses. What should I prepare for? Our servicer is Ocwen, previously GMAC. The mortgage is for a second home and not a rental. This scenario is considered a rental, correct? Also I am current and there may be equity in the property. I just retired and my income dropped $70k, to $128. I am current on the second home mortgage. Will I be approved?

[CamaroGuy]

You might have better luck if you start your own thread as it's not even really related to my 9-month old post.

[Evan Bedard]

Entering into a trial payment plan with BofA and now I want to apply for Hamp 2 mod on our second home in CA that my son is living in. He is not renting, just giving me assistance for our monthly expenses. What should I prepare for? Our servicer is Ocwen, previously GMAC. The mortgage is for a second home and not a rental. This scenario is considered a rental, correct? Also I am current and there may be equity in the property. I just retired and my income dropped $70k, to $128. I am current on the second home mortgage. Will I be approved?

Welcome and thanks for joining the community.

Yes, this property is considered an investment/rental property. Unfortunately, since you are undergoing a trial period on your primary residence BofA may ask that you hold out on applying for a modification on your rental until the modification is finalized. What is the interest rate on your 2nd home and does your son's contributions cover most of the monthly payment on that property?