Q: My manufactured rental property is underwater. Is there any hope for a modification or refinance?
A: It is not surprising that you are having trouble getting mortgage relief on your manufactured rental.
First, most refinance and modification efforts are available only for owner-occupied properties; yours is not. Also, modification programs are usually aimed at homeowners in some form of financial hardship; you don't mention that this is the case.
As well, the only "official" refinance program for most underwater borrowers is the Home Affordable Refinance Program, but that is only available if your loan is owned or backed by Fannie Mae or Freddie Mac; presumably, your loan is not.
If your loan is an FHA-backed loan, you might be eligible for a streamline refinance, which appears to also apply to rental properties. Presumably, if the FHA backed the loan initially, they would generally re-back it.
However, lenders are skittish about putting "risky" loans into the FHA pool these days, so you'll probably need to shop around long and hard to find a mortgage lender who will help. Also, all indications are that even though the process is streamlined, you cannot finance the closing costs into the loan, so you'll need to pay them out-of-pocket.
- How to buy a bank-owned property
If you're looking for a good deal on your next home, buying an REO house can be worth looking into. Having a better understanding of the REO process can make things easier.
- Buying a foreclosed home
Buying a foreclosed property can save home buyers thousands of dollars. Here are a few tips on things you should know prior to beginning your home search.
- Tips for buying distressed properties
Whether you're a looking to buy a distressed property as an investor or your plan is to keep the home as your primary residence, here are the pro's and con's to buying one.
- How to Shop for a Mortgage in 2019
If you're looking to get a mortgage this year, getting the best rate is important. Here's how to go about getting the best deal for you.
- Home buyer programs by state | 2019
HSH.com's research covering homebuyer assistance programs across the country. See if downpayment or closing cost help is available to you!