Gmac/Freddie mac Loan Modification - Hardship

[kadapah1]

Hello,

This site is very informational. I have a question regd Owner Occupied and Rental properties.

I have Owner occupied home and two Rental properties.
Now i am in the process of doing short sale of rental properties (because of negative cash flow). The mortgage loans are with Countrywide.
Now i am trying to do Loan modification (Gmac) on my personal home (hardship of reduced income).
I have sent the hardship letter to Gmac mentioning (short sale of rental properties and reduced income).
I read through Freddie Mac guide lines for Loan modification (Owner home), i didn't find one.
Can you please let us know, is there any loan modification rule which restricts people having multiple properties (Even though i am doing short sale of rental properties)?

Thank you

[Moe Bedard]

Hi kadapah1,


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


these are the qualifying terms for the modification.........

• The home must be an owner occupied, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).

• The home must be a primary residence (verified with tax return, credit report, and other documentation such as a utility bill).

• The home may not be investor-owned.

• The home may not be vacant or condemned.

• Borrowers in bankruptcy are not automatically eliminated from consideration for a modification.
•
Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.

• First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

1 Unit: $729,750

2 Units: $934,200

3 Units: $1,129,250

4 Units: $1,403,400



Here is a link to the rest of the guidelines............
http://www.treas.gov/press/releases/...guidelines.pdf

[kadapah1]

Hi ***,
Thank you for quick response. I guess investor-owned means people who had net -worth of 1 million or income of over
$200,000 per year. Does anybody has any idea, wheth
er above statement is true?

[Moe Bedard]

No................Investor owned would mean a rental/investment property..........under the modification program the property that you are trying to modify would need to be the owner occupied principle residence.

[kadapah1]

***,

Okay. Thank you for clarification.

[kadapah1]

Hi,

Does anybody have experienced payment change after Trial period (3 months). I got the Trial modification approved from GMAC/Freddiemac for three months. They said after successful payments, they again look at the financials and decide the final modification.

I am yet to receive the documents, once i receive, i will update the details.

Thank you

[osfan]

It seems to discuss this here:

http://www.hmpadmin.com/docs/Supplem...tive_09-01.pdf

Looks like 25% window and gross difference and it won't cause a change.

The effective date of the trial period will be set forth in the Trial Period Plan. In most
cases, the effective date is the first day of the month following the servicer’s mailing of
the offer for the Trial Period Plan. The trial period extends for two (or more if necessary
to comply with applicable contractual obligations) additional payments after the effective
date.

Servicers are encouraged to require automated payment methods, such as automatic
payment drafting. If automatic payment drafting is required, it must be used by all HMP
borrowers, unless a borrower opts out.

If the verified income evidenced by the borrower’s documentation exceeds the initial

income information used by the servicer to place the borrower in the trial period by more

than 25 percent, the borrower must be reevaluated based on the program eligibility and
underwriting requirements. If this reevaluation determines that the borrower is still
eligible, new documents must be prepared and the borrower must restart the trial period.
If the verified income evidenced by the borrower’s documentation is less than the initial
income information used by the servicer to place the borrower in the trial period, or if the
verified income exceeds the initial income information by 25 percent or less, and the
borrower is still eligible, then the trial period will not restart and the trial period payments
will not change; provided, that verified income will be used to calculate the monthly
mortgage payment under the Agreement. (If, based on verified income the result of the
NPV test is “negative” for modification, the servicer is not obligated to perform the
modification.) However, if the servicer determines the borrower is not eligible for the
HMP based on verified income, the servicer must notify the borrower of that
determination and that any trial period payments made by the borrower will be applied to

the mortgage loan in accordance with the borrower’s current loan documents.