The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
The current loan-to-value (LTV) ratio must be greater than 80%.
The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months
I wish you the best with this.
As rental properties, your bank is probably not going to let you conduct a short sale, and even if they did there are big tax penalties for it since it is not your primary home.
Patrick is correct. It may be necessary to sell the properties at a loss. This would mean that at the close of the sale, you would have to bring a check for the difference to the closing table to pay off the bank. Your only other alternative (which is NOT a good one) is to let them be foreclosed on. Again, this is NOT a good alternative.
I work with investors regularly. Depending on the quality, location, and value of your properties, there may be an interest in them. Please give me a call or email me with some details on your properties. I will try my best to help you out.
Keller Williams Elite
If the investment properties are not worth as much as you may owe on the properties, one unfortunate, but obvious answer is to sell them at a loss. The advanatage is that the loss may afford you tax benefits in the form of a write off (capital loss.) Consult with your CPA about the possible tax beneits of the capital loss.
If you are having trouble maintaining tenacy, then it may be time to reinvest in improvements so that you can demand a hirer rate of rent to cover the mortgage payments. In this scenario, you could wait out the market and in time, hopefully the property value may increase.