Quote:
Originally Posted by TimtheGuy
So you can't meet your obligation on your current house and asking for a loan modification. You then want to buy another house and become a landlord. You need to put your focus on getting your financial house in order before you consider buying more.
To answer your question, after your modification you will not qualify for a new loan for a few years as you will have a mortgage on your credit report that was not 'paid as agreed'.
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Well said Tim....
sullah - in these forums there are so many people lacking common sense. Your first statement concerned me a little. Answering your question about a loan modification and purchasing a new home. In a couple of years I see no problem with that.
Understand when a person buys an investment property, the interest rate is higher because there is more risk. Compared to when a people buys a home to live in receiving a lower interest, there is less risk.
After there is a history of on time payments, the Lender's risk level lowers at no benefit to you. Over the last decade I have spoken to 100's of people that kept their first home, renting it creating a 2nd income and moving into another home. What you are thinking of doing, you are not the first to think this way.
Actually - most Lenders have a trial period which is considered mortgage probation, a home owner cannot miss any payments in that period. If they do, the Lender can immediately start the foreclosure process without going through the courts. Even due to the fact a state is a Judicial state, home owners no longer fall under that protection if they miss a payment in the period.
The period - it is different between lenders, the most I have seen has been 12 months.
One thing I have seen Lenders really "Screwing" homeowners (excuse me but no other word describes this). They lower the payment, leading the home owner to believe the new payment is what their loan was modified to. Then 6 months to a year later send them a demand statement for everything past due.
Another example with a lady in Georgia - over a year was sending in partial payments and financial documentation, to her Lender (BoA). Then one day the sheriff was knocking on her do to evict her. Her lender said she did not have the income to support her loan (her had 12mths of her bank statements so she could not contest it).
Finally sorry to bust your bubble - realize your Lender is not your friend. They are in business to make a lot of money off you over the life time of your loan. Going to them and asking for help (a reduction of money {profit} they are getting), when you are not in default of your payments. You are not giving any reason to your bank for them to lower your payments. Plain and simple, right now each month they are getting their money.
Again I do not know all the details of your situation, everything you have said based on my experience, you do not have a winning case for a modification....
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