Loan modification investment property guidelines - Need help

[chasqui]

Hi,
I have an investment property that is rented, but the rental doesn't cover the whole payment. We are also in the process of a loan modification in the property were I live, for this one we hired someone, but there weren't very responsive so I want to try to do this on my own. For the first loan the goal was to get the 37% DTI, but does it work the same for an investment property? I have calculated all the expenses and loan payments I get an income of 4,850 (including rental propert) and expenses of 5500. I has already called my bank, but the representative who assisted me didn't include the rental income, so they told me that my only obtion was a short sale. I am calling the bank back, but I needed to have more information before I do that, we are currently behind and I am hoping to get a foreberance in the meantime until they process the loan modification package. If I ask for a foreberance or a payment extension would that affect the outcome of a loan modification? I thought to ask since I heard that from someone else.
the outstanding loan on the property is 123K @ 6.5% and 15k @9.3%. The property was bought back in 2005 for $145, it is in perfect conditions, we did improvements.
any thoughts are wlcome.

[Evan Bedard]

Hi chasqui,

If I ask for a foreberance or a payment extension would that affect the outcome of a loan modification? I thought to ask since I heard that from someone else.
the outstanding loan on the property is 123K @ 6.5% and 15k @9.3%. The property was bought back in 2005 for $145, it is in perfect conditions, we did improvements.
any thoughts are wlcome.

If you request a forbearance they are going to review your case just for a forbearance.

What lender do you have?

[chasqui]

How do you get the DTI? the morgage payment for the investment property is $1,228 + $249 HOA, on the one were we live at is $3,236 (including everything).

[chasqui]

Aurora Loan services. What I meant is to get a foreberance while they review my loan modification package. I am asking untimately for a loan modification.

[chasqui]

I just called the bank again, they put me in a temporary plan where I get to pay $744 on the first loan, this is until December and then they said that they will decide weather they will do a permanent loan or not. They said they can't do anything about the second loan until the whole loan is modified. No real explanation on how they will determine how the permanent modification will be done. The rep said that the 37% DTI still applies, but I doubt it. Any insight or ideas would be greatly appreciated.
thanks!!!!

[flagirl4444]

I think you'll have a hard time getting a permanent modification on an investment property, especially one where you are not upside down on the mortgage.

[Liza09]

Aurora Loan Services is working on mods for two investment properties we have. After paying the second of four trial payments, they requested we submit a complete loan mod package. We've sent in our third payment with the final trial payment due late November. Then we wait and see.

Is the property upside-down? Did you ask Aurora who your investor is and if they will modify an investment property? I would certainly ask them what they can offer you.