CDA Loan - refinance or loan modification? Need to move...

Author Message
Icon Mini Profile special_girl432





Joined: 15 Oct 2010

Posts: 1

2.61 Dollars($)
Post Posted: Fri Oct 15, 2010 3:28 pm    Post subject: CDA Loan - refinance or loan modification? Need to move...
Like
Dislike

So here is an overview of my situation. I have a mortgage that was obtained approximately 4 years ago through Maryland’s CDA/More-Home-For-Less program. Unlikely many unfortunate souls who I see posting on here (my heart goes out to all of you in far worse shoes than I), I am actually not in any danger of foreclosure or losing my home. I have a stable full time job (have been here about 3 years) and have paid my mortgage on time since I have owned the home. My house (condo) is indeed upside-down on the mortgage, but only by about 15K (condo is worth around 170K now, mortgage currently at about 186K), which in the world of mortgage isn’t much at all.

The problem is I am looking to move away to the other side of the country for personal reasons (new job, boyfriend, etc.) in about 1 year. I want to keep the house, but of course rent it out. The problem is CDA mandates that the original owner occupy the home FOREVER, period. As in no matter how long you have lived there, you can’t ever rent it with a CDA loan (I had no idea this was the case until recently). In addition, my home does NOT qualify for the 125% remortgage program under Obama’s program because it’s not held by Freddie Mac or Fannie Mae, but rather bond-held (as I understand it, but I might be wrong).

There are other good and bad sides to my current financial situation otherwise. The good side, as aforementioned, is I am not behind on my mortgage, and I have a stable job. I also have a good amount of spare cash in savings in the bank. I also have an excellent credit score (not a single late payment of any kind on record for anything). The bad news is I have my fair share of credit card debt and student loans which I am working to pay down, which may hinder my ability to refinance (though I am not at all behind on either).

I am wondering what the best option is. I called my mortgage-holding company (they are a sub-servicer, so they don’t refinance loans, only modifications to existing ones in cases of hardship), and they said there is no way to get a CDA loan to allow for renting unless I can file a hardship letter which gets approved by the MD Department of Housing and Community Development, and they can then put a waiver on my loan that allows me to rent it out. The problem is, until I actually move away, I don’t know how I could file a hardship at this point since my financial situation hasn’t really changed for the worse yet. In addition, if I wait to actually move away, I would be stuck fixing up the condo to rent and then having it stand vacant until I (maybe) get approved for a rent waiver, and if I get denied, I am really screwed, as I would be forced to stop paying on it, and likely lose the home all together.


The only other option I have is to refinance or sell (I have no desire to sell, and likely couldn’t in this climate anyway). I am wondering if there is any lawyer/non-profit/entity out there that could help me refinance with another company so after living there 1 year, I could do what I wanted with it. I don’t consider it rental property because I will be moving back within a few years and living in it at that time, so the renting is temporary.
I have done a good amount of browsing on these forms, and see many references to places like NACA, HopeNow, etc., but I seems like they all specialize in foreclosure-bound properties and working with people who are unemployed, etc. Since my situation is quite different, I am trying to fish for what the best option is. My hope is that I can simply get the renter waiver based on hardship and avoid a full refinance, but I am not sure what hardship I would need. If that is out, then I need to refinance, but I need to know how to get started and whom to do it with (safely and effectively).

The plus side is as noted, i have money in the bank and can likely afford a lawyer if i can find one who specializes in CDA loan mods (depending on what they charge and assuming they are reputable).

Any recommendations or help anyone can offer is much appreciated. I know my situation is complicated.
NickG2000

Guest







Post Posted: Mon Oct 18, 2010 2:31 pm    Post subject: Same boat
Like
Dislike

I also have a CDA loan and I am also underwater, but by a lot (-$150,000). I was not aware that there was a prohibition on renting. I guess when I have to move I will have to allow foreclosure.
cantgetout

Guest







Post Posted: Tue Oct 19, 2010 4:49 am    Post subject: CDA loan
Like
Dislike

I also have a CDA loan. We purchased at the height of the housing boom. I think our home depreciated about 40k. Of course when we brought our home(townhome) we had one child now we have 3 and one on the way. CDA said that we cannot rent out our home. We have to move, or we'll be walking all over each other. Called the CDA program to find out what can be done. Was told to just "hunker down." and be uncomfortable for a while until we can sell our home. We are not behind, never been late, no hardships at this time. Please, we will accept any advice you have at this time.
Icon Mini Profile jameshogg
jameshogg




Joined: 20 Dec 2005

Posts: 12160
Location: Nevada
1221.50 Dollars($)
Post Posted: Wed Oct 20, 2010 12:27 am    Post subject:
Like
Dislike

Hi Everyone,

As there is no equity in the properties, none of you will be able to refinance the mortgage with some other lender. As far as I can understand the situation, you all will have to sell off the property or have to apply for a hardship so that the lender allows you to rent the property.

Thanks
Gee

Guest







Post Posted: Sun Jan 02, 2011 11:00 pm    Post subject: CDA LOAN
Like
Dislike

Sorry to say that we are in the same problem with everyone else. We want to move as well for a larger space. We found out the day of signing with no mention of the non-rental being said thru-out the whole process. We are trapped with the up side down market. We have never been behind nor late.
Guest









Post Posted: Fri Feb 11, 2011 5:49 pm    Post subject:
Like
Dislike

We also have a CDA loan, I have also tried everything to refinance it, move, etc. Our house is now $60K under and we don't have that money to come up with. Our interest rate is 7.25%, this is so ridiculous that there is no one out there to help. We are literally trying to borrow money just to get out, to then have to pay off a loan for the next 10 years...of course it has to be a personal loan because no bank will lend us the money. But it seems better than living in a tiny house, paying out of our behind for something that will NEVER go back to what we bought it for.....it's so depressing. Sad
Guest66

Guest







Post Posted: Thu Mar 10, 2011 11:49 am    Post subject: Any update?
Like
Dislike

Special Girl, I just found this board because I'm in the same boat, only I didn't realize that I couldn't rent out my house until after I had already accepted a job in VA. What did you wind up doing? (or anyone else on this board)
NickG2000

Guest







Post Posted: Tue Jul 19, 2011 3:45 pm    Post subject: Update
Like
Dislike

We stopped paying and moved a few months later. They told us we could short sell. We got a buyer and a contract. Then Bogman, Inc (the servicer) told us that we would have to pay out all of this money in order for them to approve the short sale. It has been one surprise after another, no transparency. Looks like we will have to declare bankruptcy.
Guest









Post Posted: Tue Jul 19, 2011 10:19 pm    Post subject:
Like
Dislike

The lender is constantly harassing you. It will be better to file bankruptcy in order to get rid of it.
Kfr104

Guest







Post Posted: Tue Aug 09, 2011 6:17 pm    Post subject: Short sale
Like
Dislike

I am trying to short sale it right now. NickG2000 did you use a realtor to negotiate the short sale?
Icon Mini Profile jameshogg
jameshogg




Joined: 20 Dec 2005

Posts: 12160
Location: Nevada
1221.50 Dollars($)
Post Posted: Tue Aug 09, 2011 10:26 pm    Post subject:
Like
Dislike

Hi Kfr,

You can negotiate on your own with the lender and apply for a short sale. It will be the lender's discretion whether or not he will consider your request for a short sale.

Thanks
cantgetout

Guest







Post Posted: Thu Aug 11, 2011 12:56 pm    Post subject: CDA loan
Like
Dislike

We still are crammed in our small house. The CDA program is a joke. We have done everything in our power to get out of this house to no avail. We spoke with an attorney that stated that until they change their restrictions the contract is binding.

BUYER BEWARE, do not get a CDA loan for your first home. You have to live in it forever if you cannot sell. Open to any suggestions of what others may have done.

_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile smithsussane
smith.sussane




Joined: 18 Sep 2008

Posts: 12593
Location: Alaska
1309.02 Dollars($)
Post Posted: Thu Aug 11, 2011 8:36 pm    Post subject:
Like
Dislike

Hi cantgetout!

Welcome to forums!

You can check out all about CDA loans from the given page: "http://www.mmprogram.org/faqs.aspx".

Sussane
Kfr104

Guest







Post Posted: Sat Aug 13, 2011 4:31 am    Post subject: Short sell
Like
Dislike

Anyone try contacting the governor?
Icon Mini Profile smithsussane
smith.sussane




Joined: 18 Sep 2008

Posts: 12593
Location: Alaska
1309.02 Dollars($)
Post Posted: Sun Aug 14, 2011 9:52 pm    Post subject:
Like
Dislike

Hi Kfr!

Welcome to forums!

What for should anyone contact the governor? For a short sale? That won't be of any help. You should contact the lender if you wish to short sale your property.

Feel free to ask if you've further queries.

Sussane
All times are GMT - 7 Hours
1, 2, 3, 4  Next  
Page 1 of 4

 

Page loaded in 0.499 seconds.