Rental Property Mod with National City Mortgage?

[need2savemyhome]

In, Oct 2008, I was able to get my primary residence's loan mod. I owed my mods for my first and 2nd mortgages to LoanSafe. Thanks again!

Now, we weren't going to pursue a mod with our rental property becuase our primary mortgage were lower. But now my husband's income was decreased again and I will be on maternity leave in less than 2 months and won't received the same pay. Our rental property was originally our primany home when we first purchased in 2004 and then 3 years later we bought our current home. Since 2007, we have rented the house. Each year, our property taxes get increased by at least 1,000.00 a year and we had been able to take the hits in escrow shortgage but now it was increased again and its very hard to keep paying the mortgage.

We owe 299,000(one loan only to National City Mortgage) and our interest is 6.65% fixed. The investor is Fannie Mae.

With the old mortgage payment, we were able to pay the full mortgage from the rental income. Now, we have to put money from our income to cover the mortgage.

Luckly, we have been able to stay current in our mortgage. But don't know how much longer we can stay current.

My question would be if we would be able to apply for a mod or refinance. I know we can't do the streamline ref because we don't live in the house.

Since its a rental property, do they look at the rental income and substract the mortgage form it to get the surplus or do they look at all the income in the household.

Please help me...

Thanks.

[Moe Bedard]

Have you tried contacting them and asking what the options are on your loan for a modification?

It looks like their hardship assistance is able to be done online......
National City Mortgage - Having Trouble Making Payments

[need2savemyhome]

***,
Thanks for the input.

I did filled out the online application on May 20 and faxed all the required documents. I called National City last Friday and was told that they got everything they needed but it would take 12 weeks for the file to be reviewed. When I called the automated call said that I could qualify for a refinance but then when I spoke with an agent, I was told that they review the applications for all possible workouts. It hasn't been assigned to anyone yet.

I don't know if anybody else has had experience with National City Mortgage. I couldn't find any sucess with them.

[iminlj]

have you heard back from NCM? How is it going?

[need2savemyhome]

I received a letter from them stating that there were no options for us since we are current and don't live in the property. Can't refinance either because for a 2nd property the LTV would have to be at 75%. We were able to mod our main home without being late. I don't know if we were to become late if they will consider us for a mod but don't want to risk messing up our credit and then get turned down just because we don't live in the property.

Any suggestions?

I haven't seen that many investor property getting a mod. I know for a fact our loan is backed thru Fannie Mae.

[iminlj]

I guess you need to do an analysis as to what is more important, your credit or your loan mod. I would keep trying because soometimes you get one answer from one rep then another answer from a different rep. Good luck.

[NotinPA]

Hello...
I am with NCM and the investor is Fannie Mae for me as well. Even though NCM will not admit this, but it showed up on my credit report when they sold it....
I am currently trying to do a short sale or DIL or foreclosure which ever happens first...

[lecia11]

Yep, that's what I was told exactly. They are not modifying rental properties, period. And I don't know if that will ever change. I'm just going to keep holding on for as long as I can.

[pattona]

A couple of thoughts...

When is the lease up? Could you move back in for a short period of time? What about claiming it as a second home?

I just did a second home refi via BofA's HASP program. Supposedly this was a streamlined refi that wouldn't require an appraisal (my LTV was 54%) or full doc, just W2s. If you have FNMA you do not have to go through the same lender/servicer. My loan was originated as a second home loan and still shows up on the system as one (just as your 1st will show up as o-o). Although an appraisal was done (which wound up not paying for) no tax returns so they didn't see the rental income. The lease was up June 30 but the mortgage broker said they might deny it any way assuming it was going to be rented out again.

In any case if you have some flexibility that might be a way to go. Good luck!

[Eneal08]

I have successfully gotten modifications on 3 rental properties. They only came "after" I STOPPED MAKING PAYMENTS!!!!! Also you should contact bank every few days, because the rules are changing sometimes daily. My biggest modification success story was with Bayview Bank. I went from 11.9% to 6.5%. I went from paying 10K per month to $5,600 per month! All missed payments were put on the back of the loan. I did have to pay the escrow impounds upfront (taxes and Insurance pymts)As Moe suggested, I provided them with a hardship letter explaining the situation. Explaining that the property was in a high crime area, and that renters couldn't pay rent due to recession. I typed up a rent roll showing who was paying what, and who was behind and all vacancies. This property consists of 2 12 plexes on one note with a $700K balance. I also got loan mods with Country Wide now (B of A) modified automatically by making a phonecall to the bank and giving information by phone. IF YOU KEEP MAKING PAYMENTS, YOU CAN EXPECT NO ASSISTANCE. You won't be able to keep making the payments short of a miracle and run the risk of ruining your credit anyway! I did these mods 3 months ago, using LoanSafe and other internet resources, to educate myself. Good Luck and May God Be With You.

[otisanddinga]

thanks for the info eneal08. are you in calif? I'm in the same scenario. I have just stopped making payments(very scary but necessary). I have 5 rental properties with loan violations. I also recently hired an attorney as the banks kept playing games with me. How long did it take them to modify after the last payment? I know all lenders are different but just some timelines would help... thanks...

[Banzai]

I have a rental property with a countrywide loan and it is being refinanced under the HARP program. A verbal application over the phone and I went from 7.375 to 5.875 . It is due to close 9/14

If the loan is a FNMA or Freddie Mac you should be able to refi under this program. You have to have had max 1 late payment and have a certain FICO score 620 or higher (I think).

It is not principal reduction or anything but it can help.

[otisanddinga]

you might be able to even get a lower percentage depending on your financial situation, loan violations and or hardship?call fransen and molinero for a free consultation to determine, I did.