Rental Property Mod. Success!!!!!!!!!!

[Mandy]

Here it is:

I was late three payments. Called WF after they sent so many letters. Got in for a review. 1st time I got a denial. I was mad, because I knew that this was not right. I sent in all of my paperwork again and in less than a month, BINGO a got a permanent modification.

I was so excited today when I called them that I can hardly remember. Yes, I will be saving myself $300 a month. It may not see like a lot but for me it is. Taxes and insurance are also escrowed. I am happy, since this is a rental property and I was behind like 4 months.

On the other hand, I'm still trying to get a modification on my home. I been on this almost a year. I don't understand why I qualify for this one and yet I do not qualify on the other one.

[Liza09]

That's great news! We received a mod on one of our rentals also. May I ask what the terms are? We are waiting to hear on 3 other rentals plus our primary residence. When I first got on this forum, many were saying you couldn't get a mod for a rental property. Maybe lenders are seeing the value in keeping tenants in the properties instead of foreclosing. Just becase I hit a financially difficult time has nothing to do with my tenants. I'm glad my tenants will not have to be displaced.

[ItWillWork]

Congrats! It's great to know the banks are wisening up about the rentals. I'm curious if it's underwater. What state is it located?

[gdrky]

Congratulations on getting your modification. I have three rental property loans with ASC. Was your loan with WF or ASC? Also, did you just call the regular 800# or did you call somewhere else?

[Mandy]

Hello,

I live in California. Yes, I am underwater. My loan is with Wells Fargo and my investor is Freddie Mac. At first I was told that I needed a lawyer.... It took me like 2-3 months. My first denial was on Dec. 5th, I reapplied again that same week, since I couldn't take no for an answer. I was told that they couldn't help me since it a was rental and that I couldn't qualify for HAMP. So many stupid excuses, that I just kept on fighting. I always called the Loss Mitigatition number the 1-800-416-1472.... I will post the terms when I get them. It is not much, but now I will be like 5 months late, so it will be a lot of money, first payment will be due on 3/10....

[domingo]

Hi Mandy
Im also trying to modifiy a rental property with ASC/Wells Fargo. Got turned down the first time but going to re-submit it again.

Ive asked them specifically what they needed being that is was a rental and they had no answer. what I sent them was all my personal financial worksheet with my personal income and expences that zero'd out so theres no extra money to put towards the payment. For the rental I submitted the financials showing PITI and management minus the rent showing the negative cash flow. I also submitted a solution to get the payment inline with the rent. The house is in AZ as is about 50% upside down. I also submitted recent comps to show the decline in value

Any thing that you could share about what you submitted to get you modified would really be helpful.
BTW! Glad to hear about your success!

[Mandy]

Hello,

Remember that they only take 75% of the rental property. What I did resubmitted everything. After all of my expenses I had like 400 left. Just keep fighting....

[Positive]

Mandy,

You said you had $400 left after all of your expense. Did you mean that if you take the rental income x 0.75 and subtracted rental expenses leaving you with a $400 dollar surplus and they modified your loan? I am about to submit my financials and am curious what WF seems to be looking for.

Just looking at rental income(x 0.75) - expenses I show ~$1,000 loss. This is has been due to a severe drop in rents I can charge in my area. As well as an increase in maintenance that I seem to be doing because of evictions/abandonments of the apartments. I am worried that this loss could be too great for WF to consider a modification.

Also for anyone else that may have some insight on rental modifications, does WF look at personal finances (personal income, mortgage, expenses) as well when calculating surplus/loss on a rental property?

Thanks,

Stay Positive

[Mandy]

Positive,

I actually have two financial statements. On the first one I was at $339 and on the last one, which was I guess the right formula was for $571 after all expenses and no I didn't deduct the 75% of the property, so that brought me like to 200 more or less. I hope this helps you.

I still need to fight them because how in the world I modified the loan on a renatl property instead of my home???? On my home, which I am also with WF, they have me on a moratorium, like if that is going to help. How in the world does that help?

[beachlady]

I actually have two financial statements. On the first one I was at $339 and on the last one, which was I guess the right formula was for $571 after all expenses and no I didn't deduct the 75% of the property, so that brought me like to 200 more or less.

Mandy,
Just want to make sure I understand this crystal clear.

After you laid out all your expenses (home mortage, rental mortage... taxes.. ins... credit card cards, life insura... medical insur... groceries.....basically everything you put money out for a month) you came up with $571 surplus? I really want to understand the detail you got into. Monthly haircuts??

Did you do it off of Gross income?

Did you add anything for average maintenace fees of keeping up the property... plumbers, Hvac??

thanks so much!!!!

[Mandy]

beachlady,

It was$571 after everything. No I did not add any haircuts and nor did I have any maintenance. Last time, that I spoke to a negotiator told me to get rid of those two and as soon as I did, I got a modification.

[babsy]

Mandy and Liza09,
Im also trying to modifiy a rental property. Can you please help me with what the lenders are looking out for in regards to filling out the rental property financial sheet and the reasons for hardship. On what terms would they approve you for a rental modification. Do you need to show postive cash flow or negative cash flow? Although I have happy tenants for the said property to rent, I currently have to add about $250 dollars to this rental property each month. Also I have an adjustable interest rate which is about to reset in August 2010. I can't afford the mortgage now how much more when it adjust. I already have a negative cash flow for that property and need some input from you all on how to proceed please.

Do you fill out separate financial sheets for your primary and all of your everyday expenses? and then another one for the rental as well? Please share some of your thoughts.

Mandy if you have positive cash flow from that property how would they want to help you out.

[Mandy]

babsy,

If I were you, I would call CCCS and they will help you with your financials. Yes, you do have to show a positive cash flow. My problem was that I had no tenants for 3-4 months. Maybe you can try telling the bank that you need to work out something because your interest is going to reset, unless if you have other financial problems.

[domingo]

Mandy...
CCCS? whats this and they can help yuo get your financials in order?

[kjenkins7]

beachlady,

It was$571 after everything. No I did not add any haircuts and nor did I have any maintenance. Last time, that I spoke to a negotiator told me to get rid of those two and as soon as I did, I got a modification.

Mandy,

You stated they WONT help you on your primary home. What are the current terms: Principle owed, rate, I/O ? 1 loan or 2 loans ?
I have a rental that the rentor keeps paying partial payment and falls behind a bit, etc, so we evict and get another that does the same thing etc. Long story short this leads us to having to pay 2 mortgages which equals to our downfall (hardship on the primary home) Dont forget to add that to the hardship letter.

Are you behind in payment on the primary now ? If not that might be why they dont want to help you. They would rather reduce the small loan and help than the big one (primary).

[judithoo5]

my problem is that my house is a 2family house..i live in one side and the other side is rented for 2000 my income is 2458 so total will be 4458..i was just recently accepted for the HAMP trail...wells fargo told me that i had a surplus of 152..i know they didnt do the 75% rental..if they wouldve used the 75% i wouldve have a 356 deficit so now that i have the Hamp package i want to fix everything..

[tc4gold]

HI,
I have tried since February to get a mod on my rentals with Wachovia now Wells Fargo. What a nightmare, ended up losing one to a short sale as they refused mod because there was no tenant. (couldn't get tenant til I knew they would modify as person loaning me money to fix the proeprty wouldn't do it without the mod in place. Still working on 2nd one they have given me hell for months, I have faxed over 300 pages since February and now they still want more and they are only saying they might give me a 6 month forebearance anyway with nothing final.
Chase refused modification also so that is going to short sale, these banks are idiots. If they just modified quickly they would get paid in full but no, I am so tired of dealing with them all. I would sell them if I could just to stop the stress of dealing with the banks but no one wants to buy them except at short sale prices. The banks are so messed up with these paper work nightmares they put us through. I hope they all lose their jobs one day and suffer what we have all suffered with.

[TomEason]

HI,
I have tried since February to get a mod on my rentals with Wachovia now Wells Fargo. What a nightmare, ended up losing one to a short sale as they refused mod because there was no tenant. (couldn't get tenant til I knew they would modify as person loaning me money to fix the proeprty wouldn't do it without the mod in place. Still working on 2nd one they have given me hell for months, I have faxed over 300 pages since February and now they still want more and they are only saying they might give me a 6 month forebearance anyway with nothing final.
Chase refused modification also so that is going to short sale, these banks are idiots. If they just modified quickly they would get paid in full but no, I am so tired of dealing with them all. I would sell them if I could just to stop the stress of dealing with the banks but no one wants to buy them except at short sale prices. The banks are so messed up with these paper work nightmares they put us through. I hope they all lose their jobs one day and suffer what we have all suffered with.

I can definitely relate, as I have several rental properties in CA I'm still trying to get mods on. I've also lost one to foreclosure because the mod offered by WF was lousy, I countered, but they were intractable, so I let it go. I'm now dealing with BOA on two of them. It's an ordeal, to say the least.

[Martae007]

Hello all,

For those you have successfully obtained a permanent rental property modification, CONGRATULATIONS!!!!!! As for the rest of us, I have to vent just a little. There is absolutely no reason for the lenders/servicers to drag this loan mod process on past 6 months. With internet access, fax, overnight mail service, etc., we all could have had a reasonable outcome by now, especially with the values tanking below 55% in most areas. I was on a 3 month trial payment plan, for over 16 months before I was denied because the lender didn't know where I lived! After receiving denial letter, I promptly sent proof (i.e., utility bills, etc.) and was told to start over and re-apply..... This was EMC/CHASE, and it wasn't til after a 14 months into it, they sent me a letter informing me that while I was on the trial plan, they would be reporting me late to credit bureaus....... No kidding, I found out the hard way and then after I called to complain, that's when I got the letter.

[zuprion]

I noticed that no one has responded to the question about what CCS is. Does someone know?

[Cat Damiano]

Hi zuprion,


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

CCCS is Consumer Credit Counseling Services they offer workshops and counseling services in many areas and states.