Loan Mod help with my rental property

[blew888]

Hello,

This is a great forum, I appreciate all the information and would like to get some feedback on what I can do.

Here is my story:

My uncle and I bought an triplex rental property, loan was through B of A, and the lender is from Fannie Mae. The property has depreciated 50%, the loan amount is at 150% and we cannot refinance. Here are some problems.

1. First year loan was at ~$22xx, following year, B of A said the property tax was readjusted due to the county reporting it incorrectly, now the loan amount is ~$29xx and we have been paying this for past 9 months.
2. Our reserves will deplete next month, paying the extra ~$7xx differences is hard on us. We also have primary properties to pay.
2. Uncle's had a pay cut of 15% 6 months ago, which his contribution to pay mortgage has reduced to 50%, and I am contributing more to cover mortgage ~$1000
3. My wife and I are expecting our first child in 6 months.
4. Our renters are going in and out, due to the economy. No renters, rework of the property has increase due to inflation, damages from the tenant, home owners insurance increase, and eviction cost.
5. Water and gar***e has increased by 15%, ~$230 per month
6. Current situation, 1 is occupied, $700 per month but keeps shorting us due to economy, rest is vacant. Its better than no rent.

I regret buying this property, all we have been doing is throwing money into it, not enough rental income coming in, and we cannot refinance or get out of it. Our option is to short sale or short payments soon.

I am currently writing up a hardship letter. Hopefully post it soon.
Any suggestions?

[blew888]

I forgot to mention:

Current rate is at 6.25% 5 year ARM, expires 5/1/2010.

[Moe Bedard]

HI blew888,

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

Is Bank of America the servicer? If so you would need to ask them if the short sale is an option from the investor on your loan...........they would need to approve it and there might be a timeframe that the property would need to be on the market with an agent first.

Bank of America
1-800-936-6362

[blew888]

BofA is the servicer. The loan itself is from Fannie Mae. We are currently working with the agent and is currently listed on MLS. As for approval, the letter from BofA requires all documents to be submitted and the bank will take 3-6 weeks to approve. After 90 days, we have option to do deed in lieu, but that also needs approval.

[Evan Bedard]

Hi blew888,

Has the property been listed for 3 months and do you have a current offer on the property?

[blew888]

Not yet, this is the 2nd month and only calls to get information and visits, and no offers.