I think every one should the the Making Home Affordable program is just one of many programs the lenders use. A lot of lenders have their own in house mod programs.
They have so many options right now for home owners when I submit a package and ir doesnt fit one program it may fit another. I always submit with a minimum of 3 acceptable options my client will be willing to accept. For example
1) inerest only payment 10 years,
2) forbear principal - simply set it aside - some lender will forgive principal but it istn always in the best interest of the consumer. they may face heavy tax consequences for the forgeness of debt.
3 ) settle the debt if it is an unsecured undersecured 2nd loan, either for a lump sum or 5 - 10 year loan low interest.
You have to be creative. Send it to them with acceptabel option instead of waiting for them to give you one of theirs. Once they see you are flexable things may be easier.
Also they do modify rental properties. MAHP is designed for homeowners but Im telling you lenders and investers would rather get money now than wait 1 year for the foreclosure sale.
Realtor Legal Assistant
First Weber Group
Certified Distressed Property Expert
I actually work for an attorney in CA doing Loan Mods. The home is supposed to be owner occupied but we can modify rentals as well.
If you are having a hard time finding a job near by I would then look for a job where you can get it. I would definately let the lender know. By not being truthful with the lender and commiting fraud you could get yourself into big time trouble that is not worth it.
You may be able to sell your home or the lender may prefer that you still modify and rent. With the economy the way it is lenders dont want more foreclosures!!! But what ever you do let your lender know what is going on. If you dont have a job it may be hard to get a permanent modificaiton, do you have enough income to cover the modified mortgage???
Best of Luck
Realtor Legal Assistant
Good luck. Sam Shueh, cpde
If you move out of the area, that could have an impact regarding primary residence requirements. However, if your family is staying and you are not purchasing a property elsewhere (which would seem unlikely due to finances) then your home would still be your primary and there may not be an issue.
I would pursue gainful employment and the loan mod simultaneously and not discount one in hopes of the other...but that's a personal preference. If you don't have employment there is the possibility more than your housing situation will be impacted.
If you get a job during the loan mod process and the lender requests an updated package (also referred to as a hardship package), then you will be required to submit your latest information including potentially pay stubs from new job. The lenders may or may not give much weight to the new job as you will more than likely be in a probatory period. Requirements will vary on a lender by lender basis.
Hope that helps. Good luck, there really isn't any science here.
If taking a job out of the area is the choice you need to look at alternative for disposing of the present property. Now, we don't know your situation. But if you are upside down on the mortgage a short sale might be an alternative. Paperwork is very similiar to the loan mod and often if a person is turned down for a loan mod a short sale is the next step.
But first you need to weigh your options and decide if you stay or if you go.
Home modifications are to help those who want to stay in their homes. The decision is around "primary residence" status. If your family is staying in the home while you work away from the home, their may be some flexibility. However, if you plan to rent it out or will be using a different address as your primary address, you may be placing your loan modification in jeopardy. Consult with the agent or attorney helping you with the matter to understand your options.
cherry Hill NJ