Investment Property is our Retirement

[burns_la]

Hello. New to this forum and really appreciate everyone here! My husband has been a self employed contractor for 30+ years and I was the "employed" one with a fixed salary and bennies. We purchased rentals as we could for our retirement income. Had 8 homes and pretty much "on track" with rental income at least meeting PITI mortgage pmts. Then - husband decided to buy two 4-plexes since sale price was $50k under appraisal. Still, had to re-fi 2 other houses for down. These are both upside down each month and then, BAM, I get cancer and am now permanently disabled due to nerve damage and you KNOW where my husband's construction business is with the current downturn. Sorry for the long history. We are currently 2 months behind in all payments except own residence. Is there ANY chance I can do this myself? I am not an accountant and am not sure even how to fill out an income/expense sheet - if I had a spreadsheet it might be doable. Should I just get it over with and hire an attorney? Is there an attorney that specializes in investment property? I'm sorry - not sure even how to proceed. Thanks for any advice.

[HopingtoFind]

Hello burns,

Welcome..... We also have been working on modifying several rental properties that we own.... thankfully we are ok on our primary home for now.... I have seen members here that have tackled modfication of investment properties themselves as well as those that hired an attorney... It is all about your capabilities and how much time you can dedicate to this process.
It is definitely not an easy process...

What type of loans do you have and who are the lenders on your properties? Maybe you can start with that....

[burns_la]

Thanks for the reply. All the loans are PITI. We have 1 with Chase (30 year fixed), one with Countrywide (30-year fixed), 2 with National City (15-year fixed), and 3 with SunTrust (30-year fixed). Our rates vary from 5.7 to 7.2. Is this what you were asking?

[Moe Bedard]

HI burns_la,


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

The modifications given are up to the investors on the loans.........investment properties are a bit tougher, but most investors are modifying them. You would need to contact each servicer and see what the options are and submit your paperwork to get started on the modification................if you feel that you may not be able to do this yourself, you can have a free consultation with the attorney on the home page of the forum and see if they can help you and what that would entail...........here is the link for that info............
Safe Loan Modification Service | Home Mortgage | Protect Your Home & Mortgage With Loan Safe

If you are going to do this on your own, here are the contacts for you to see what the options are......

Chase Homeowner's Assistance
1-800-446-8939

Countrywide Home Retention
1-800-669-0102

National City
1-800-523-8654


Suntrust
Loss Mitigation:
800-443-1032



Please keep us posted on your progress.............

[burns_la]

Thanks a lot for the input. I am just afraid to make the call before I "know" what I'm doing...but will do it today!

[HopingtoFind]

burns_la.... I didn't know anything when I started, but you learn as you go though the process... You just have to start... that's the hardest part.

Best of luck with your mod...

[burns_la]

Hoping: when you contacted each mortgage company, did they want your financial spreadsheet for your business as well as personal? Did they also ask for one for each investment property?

[HopingtoFind]

For us they all wanted Profit and Loss statement, since we are not incorporated it was all combined... investment properties and personal.

But when you call them, they should let you know what you would need to give them depending on your particular situation...

[rose450]

I have 2 other properties as well as our residence. I would like to keep them. All are behind several months. I just got a new job, we were self-employed for 15 years. no more!! I was wondering if there were different restrictions on loans for rentals or second homes. Both are now rentals, but haven't got renters in them yet. Wanted to make sure the lenders would work with us. I can have them rented in just a few days, have people who are interested in both. please let me know what you think.
thanks
rose450

[HopingtoFind]

Hi rose450,

I personally did not encounter any restrictions on our rentals that we have tried to modify... not one servicer that we have dealt with said that we cannot modify this property because it is a rental... our investors are Fannie and Freddie. So I think you have a good chance of lenders working with you...

Where rental income comes in is that if your property is not rented out and you are paying mortgage, insurance, taxes, etc.. on your rental you will have too large of a deficit unless you have other income that covers it.. So my suggestion is to rent them out before attempting modification. They will ask you to fax lease agreements...

[rose450]

Thanks so much for the information. I have been hesitant to rent them because I am afraid of losing them. I would not want to be sued by a renter. One of them is a relative, so I think I would be ok on that one. If I get them rented, then would I do my income based just on that one alone, or do you show them all? (I hope I am making sense...this has been a nightmare!).
rose450

[HopingtoFind]

You are welcome... I am not sure I understood your question...

Basically which ever property you will try to modify they will ask you to provide all income and expenses for the household including all of your rentals...

[rose450]

That was what I meant. It's late and I have been on the computer all day trying to get information. I have an appt. with a Hud counselor next month (they are 4 weeks behind) to help me with my home mtg (GMAC). The rentals are country wide (2nd with SLS) and Option One. I am trying to do this all myself, with free help from gov't services. There is so much to learn!! Thanks for the help.
Rose450

[HopingtoFind]

You are very welcome... and best of luck with your mods.