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Phil Ohme, Real Estate Pro in 92129

Non-owner occupied loan modification?

Asked by Phil Ohme, 92129 Tue Dec 21, 2010

Does anyone know where I can get information on how to go about getting a loan mod on a rental property? The loan is through EMC which is now owned by Chase and after many, many hours on the phone, I keep getting the runaround. They say they do not do any non-owner occupied loan modifictions. When I asked why they would exclude these, they stated that its a government law. I have never heard of such a thing. Another agent there said Chase has some kind of special program for the states hardest hit if your loan is underwater, and that it works for main homes and rental prop. But I cannot find any more info on that. Thanks for your help!

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Answers

15
You can get modification on rental properties. The process is different than on primary residences because of the way that you calculate your debt to income ratios. If you would like more information, try
http://www.makinghomeaffordable.gov/for-partners/understandi… or go to http://www.cnafinancialcorp.com
0 votes Thank Flag Link Mon Jul 14, 2014
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013
I tried the same thing over the past couple years.. I started with four homes and tried to modify my first and second in my primary residence... after a frustrating six months I received no help...So... I stopped making payments on my second as it was under water and the collection calls rapidly turned into settlement offers.. My second mortgage of 188000 settled for 11k... (Citibank)....Two of my rentals had second mortgages totalling 103000 that I settled for 14k...Finally my last thru Indy mac is refusing to settle so am in the process of short selling to my tenant...Finally since I used my open credit cards to make my settlement payments I stopped paying them and got them to settle as well..
The hard part is getting out of the tax on the 1099s that they issue...Good luck!
0 votes Thank Flag Link Sun Nov 6, 2011
I have completed many non owner occupied loan modifications. Call me and I will give you information on how to structure your deal on your home. A loan modification is great if you are not that upside down. There has to be a hardship and there has to be documents and lease agreements provoded and proof a tenant is paying or not paying rent. I have top negotiators. Today the grace period ended for loan modifications and new laws are in place in the am. Make sure you get the new laws before making a decision.
0 votes Thank Flag Link Mon Jan 31, 2011
The making home affordable program is for owner occupied properties only. This program was created to help homeowners stay in there homes. You would not qualify for a HAMP loan modification just because the home you are trying to modify is a rental. On the flip side, many lenders have their own modification programs that you may be able to qualify for. Each scenario is different so it's hard to say what options are available to you. If you are just trying to get caught up on a few missed payments there may be a repayment plan you can ask about. Keep in mind most repayment plans have higher monthly payments. If you are trying to get a payment reduction on an investment property your chances are probably slim to none.
0 votes Thank Flag Link Mon Dec 27, 2010
I have never heard of a bank approving a loan modification for a non-owner occupied home. I talk to homeowners all day and I do hear of people getting loan modifications on their primary residence but when it comes to non-owner it seems the banks are not willing to work with the owner.
0 votes Thank Flag Link Mon Dec 27, 2010
Phil, if I were you, I would call back and talk to another rep at the bank. Having been in banking before, I know you can call 10 times and get 10 diff. answers.

Good luck...
0 votes Thank Flag Link Wed Dec 22, 2010
Honestly guys, I have never seen such a thing as loan modified loan on a non owner oc. But if anyone suceeds, specially through BofA, Id love to hear about it.
0 votes Thank Flag Link Wed Dec 22, 2010
Phil,

The answers you have received are worthy of your attention. As you know it may come down to document, document, document, every conversation. Remember the recording when you call that says the call may be recorded? Well, I am no attorney and you should consult one before you utilize this advice but I always record the calls that I make to the banks. Always start the recording before the phone is picked up, and always let each and every person on the other end of the phone know that you are recording it as well!

The reason is two fold; first it gives you great documentation about any representations they make to you but most importantly it keeps the inexperienced person from "guessing" at the answers and because of the inate fear they have of losing their jobs you will be transferred up the supervisory chain very quickly towards a successful resolution. I bet if you started this in the morning you will have it nearly resolved by lunch.

Of course, nobody but you will ever know whether you really did record the call or not!!!

So as the previous writer said, "grind away"! But as I say; "always use a sharp sword".

Have a happy holiday season and remember, the only thing between you and success is often only you.

Steve Innis, Broker
DRE 00644965
0 votes Thank Flag Link Wed Dec 22, 2010
The statement about the 'NOO loan mods' being against the law is incorrect. What s/he should have told you is that there are government policies in place that provide money for loan mods mostly for owner-occupied properties. Although it's true that some banks (including Chase) have some privately funded programs in place to assist property owners in some of the hardest hit states, these programs also tend to cater primarily to owners for owner-occupied properties.

Yet, some investors (myself included) will work with some borrowers like you and the banks to do a workout. Basically, we'd buy the loan at a deep enough discount for us to earn a profit and to modify the terms of the loan. Stated another way, we become the bank, and we do the workout using our own guidelines (which are often more flexible than what the banks can legally offer).

Nevertheless, please keep in mind that the previous solution doesn't work in all cases. Some banks won't sell their notes, and some borrowers' situations are such that they can't be helped. For example, let's say a borrower hasn't made a payment in a while, hasn't saved any of that money, and has filed for bankruptcy. S/he could be helped if the "drop dead" date is at least 1 month away, and most likely couldn't be helped if that date were less than 1 month away. The primary reason for this is that it takes the banks and courts some time to process all of the necessary paperwork. Otherwise, an investor could close these kinds of deals in a few days (ie less than a week).
0 votes Thank Flag Link Wed Dec 22, 2010
Phil you should call Chase and ask for the home retention department, now you will face more of an uphill challenge becuase it is a rental property, you will have to prove a hardship, with a loan mod they should be able to help you in dreducing your monthly payments by knocking your interest rate down to 1 or 2 percent. If you are looking for them to knock of principal balance because you owe more than the house is worth today, you may be out of luck, prices will rebound in the next few years when the market turns soteh bank will not knock of principal, they will only assit in monthly payments, you need to state your financial hardship and that rents have dropped causing the financial hardship along with anything else in your life that is hindering your ability to pay.

If you get a bad time from any worker, simply ask for a supervisor. Make sure you get everything in writing of what they will or will not do.
0 votes Thank Flag Link Wed Dec 22, 2010
I have NEVER heard of a law that prevents Chase or any other bank from modifying any mortgage. A mortgage is simply a contract and its terms can be changed at any time as long as both sides agree. The person you talked to was probably referring to HAMP which IS a government program, but only one of many, many program that each bank has to try to get a handle on this financial crisis. It may be difficult to find the information, you may have to just keep calling and calling until you find somebody there that says ;'yes'. Another option would be to hire someone to represent you in negotiating the modification. I know most people do not recommend that, you have to be very careful, and no one wants to spend extra money but if you find the right company, an honest and ethical company, they may have connections and insights that you and I, as lay people, just do not have. It's something to consider. Good Luck, and if I can be of assistance, please feel free to contact me.
0 votes Thank Flag Link Wed Dec 22, 2010
Keep grinding away on your lender. I have a client that was persistent for just about a year and finally a break through. They received a loan mod in November. Well worth the patience and persistence.

Good luck!
0 votes Thank Flag Link Tue Dec 21, 2010
I suggest asking for a Supervisor.Then demand that they either fax or e mail you the that special law written in crayon. I have several associates that have modified Wamu/Chase Investment loans. The turn time took nearly a year. You simply make up your mind to take the road less traveled and be patient. A difficult task when Chase employees give you a different story evry 30 minutes. Hang in there.

John Georges
0 votes Thank Flag Link Tue Dec 21, 2010
I would contact the CEO James Dimon's office directly for help. You will then be assigned to someone in the Corporate Resolution Team. I have found this to be the most efficient way to get things done with Chase or any of their various branches/entities.

I have been working on a loan mod with them for a client it will be 2 years next month!

Good luck.
0 votes Thank Flag Link Tue Dec 21, 2010
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