3/18/2010 10:33 AM (PST)

This is a good question. Have you tried dealing directly with your lender? However, I bet they are totally overwhelmed with owner occupied properties and there's tremendous public policy pressure coming down on their heads to keep families in their homes. They may not be too sympathetic to investment owners although the loss potential they are creating by fostering a "walk away" environment may be a factor on their radar screens. In other words, as investment properties tank and lenders are unwilling to work with these owners, these underwater properties that investors start walking away from will affect the market as a whole, thereby creating a self fulfilling dynamic of more foreclosures caused by walk away investors! Roundabout way of saying it, but hopefully you know what I mean.

I don't know what state you are in but do a BBB search for "loan modification" and check the reliability reports very carefully. Post about your experience afterwards, too.

3/18/2010 4:04 PM (PST)

There is no Federal stimulus money available for non-owner occupied properties, so it is not a cookie cutter HAMP submission. However, loan modifications have been going on since the 1930's. If there is equity, then you will get no help, but if they are seriously negative, depending on the lender and the investor, you may get lucky. However, be aware that income properties are evaluated based on cash flow. Another pitfall is mortgage insurance. If you have it, the bank would rather foreclose and file a claim for the deficit. What state are the properties in, and who is the mortgage holder?

3/18/2010 5:39 PM (PST)

In California a few loans are with Chase (Wamu) - they say, "ride it out" or "we may accept a short sale", US Bank (Downey)- they say, "short sale or foreclose" , Wells Fargo (Wachovia,World Savings) - "you debt income ratio is to high". All CA Properties are up-side-down. I am not behind and have good credit.

In Louisiana loans are with Litton & EMC (Chase) .
EMC did modify my loans. Litton says they may accept a short-refi but, I am out of other lenders guidelines (who might short-refi) b/c I have more than 4 mortgages.