Modification Advice Needed Rental Properties

[jblanknc]

Are there DIY products that you would recommend? I know there is a lot of info on this forum, but gosh, it would take days to consolidate it all. The forums are a great resource and I've learned a lot, but I'm just curious if these guys have anything to offer.

[Dan Bailey]

https://www.naca.com/refinance/refinanceSubmission.jsp

[jblanknc]

As of this month, I'm current on all my payments. I have loans with Wells Fargo, Wachovia, BoA, Suntrust, and Nationwide Advantage. I'm trying to determine if I should miss payments or not in order to get the best loan mods. I've had several people say that people who have missed payments get a better loan mod than people who are current. I can pull money out of savings or retirement to make payments, but I cannot make them just on monthly income. So eventually the money will run out if loan mods are not approved.

So, what have you heard? Will you get a "better" loan modification if you miss a payment or 2?

[jblanknc]

Will they work with investment properties?

[jblanknc]

I have 7 investment properties and loans with 6 different lenders. Due to various issues, my investment properties have seen a significant reduction in cash flow this year - in fact I have a $3k negative monthly cash flow from rental properties. I wish to pursue loan mods with most if not all of these loans, and I'm trying to figure out the most effective way. I don't have a lot of free time as my job is pretty demanding, so paying for some help may be a good choice for me, but I do not want to waste money either. I've done enough of that already

[Dan Bailey]

No, Naca will work with primary home only.
If you feel you need help beyond doing it yourself, hiring a qualified attorney by searching out your states BAR association would be the best bet.

As far as the DIY books...I bought a set of ginsu knives once-they did not come near my expectations when they arrived.

[jblanknc]

Dan - Ginsu knives huh? you mean you can't cut that car in half and still slice tomatoes? I got a chia pet one time...ended up looking more like a RASTA than a chia pet....

I've talk to a few attorneys and loan mod firms....just so darn expensive - the cheapest I've see so far is $2000 per mod. I'll keep reading the forums. But the DIY guys are not too expensive ($100-$200) compared to loan mod attorneys.

Thanks!

[Dan Bailey]

Stay away from "loan mod companies"..stick to attorneys.

[jblanknc]

When applying for a loan mod with the lenders, does anyone know what they are looking for concerning your DTI and\or disposable income. I'm assuming they want to see some $$ left over at the end of the month in order to make the payment, but not too much or they will not offer a mod.

Any rules of thumb?

[kat10]

Hey there. Previous guidleines suggested/required 2 months behind on fixed. 0 behind with ARM. I believe things have changed recently. We fell 2 months behind and WF would not take any partial payments. We saved the $$ monthly for later use on mod. Last conversation with WF rep yesterday..."being current isn't a bad thing anymore. you don't have to be behind to get a mod."
I looked at the HomeStability giudleines this AM and it looks like it is only for current mortgages..
DO your home work, read,learn,take copious notes. Make a decision.
Good luck you have a tough choice to make......

[Dan Bailey]

jblanknc,
It would be helpful if instead of creating a new thread for each question, you kept your situation and process in one thread so that the mods can keep track of your situation.

This question has been asked numerous times on the forum.
There is no "magic formula". Different investors have different criteria for different situations. Even 2 chase customers can have 2 different investors with opposite requirements.
Best bet is to be honest and thorough when filling out financials according to what they ask for.fficeffice" />>>

[yeswecan]

JBlanknc, I would be extremely interested to know what course you take. I too have investment properties and have had a very difficult time getting the lenders to work with us. Am upside down in value, and cash flowing negative, slightly. I hired the attorneys who advertise here, to do one property, and don't have a resolution yet. But the offer from our lender, Aurora, was the same offer they made to me back in December, before I had hired the attorneys. A forbearance agreement, that once I've paid for several months, they will THEN agree to review a loan mod application. No guarantees. Lawyers had very little leverage with Aurora that I can see. Maybe none.

[Moe Bedard]

These guidelines only apply to modifying the principle owner occupied residence...................they do not apply to rentals.

[jblanknc]

Dan - I understand why you wish to consolidate my questions, but I posted them as separate questions so that others may see the actual question in the subject line. It is difficult and time consuming to drill down into each post to find all of the questions. you are the moderator so you can manage the posts as you wish, but just something to consider. If I see a post labeled DTI, I may be more likely to read that post if that is what I'm interested in. If the post is labeled - My Story, then I'll pass, because there is usually info in those posts I'm not interested in.

I thought there was a category for My Story or something. All of my questions are independent of each other, and would stand alone without having to read through pages to find the one item I'm interested in.

So, in summary, when I'm looking through the posts, even with the search feature; if the subject line is just a generic "My Story" then I pass. I would guess there are other visitors to the sight that navigate in a similar way.

regards

[jblanknc]

Originally Posted by Dan Bailey

jblanknc,
It would be helpful if instead of creating a new thread for each question, you kept your situation and process in one thread so that the mods can keep track of your situation.

This question has been asked numerous times on the forum.
There is no "magic formula". Different investors have different criteria for different situations. Even 2 chase customers can have 2 different investors with opposite requirements.
Best bet is to be honest and thorough when filling out financials according to what they ask for.fficeffice" />>>

This is a perfect example of what I'm talking about. I did a search for DTI and debt to income and got pages of posts, but none that I saw had DTI as the post summary or name.

Thanks for the advise and summary though. It makes perfect sense.

[Moe Bedard]

jblanknc,


The forum is actually set up for members to tell their stories and update and ask the questions in their threads so that members that have similar scenarios can follow along from start to success..........your thread was asking for advice on rental properties for modification and each one of your questions is in referrence to this initial post and process...........the whole book post was against the tos of the forum..........hence the thread title change.......

Each time you ask a question your thread is bumped and we do see each new question............it makes it easier on us to follow and answer questions when we can see the story and loan information in one place, without having to go back and forth..........also other members going through the process with rental properties will see your thread and what you are going through and chime in or learn something from what you are experiencing.