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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 [url=http://www.mortgagefit.com/refinance.html]refinance[/url] (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.

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just wanted to [url=http://www.mortgagefit.com/refinance.html]refinance[/url]. I was thinking of renting, and buying elsewhere in a year or two. I talked to my lender today and found out about our "unique" situation. PMI out the yinyang, or appx $40K up front! What a hosejob!

Like | Dislike | Share | Posted: Wed, 08/29/2012 - 13:41 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

What unique situation did he inform you about? Please explain.

Sussane

Like | Dislike | Share | Posted: Wed, 08/29/2012 - 23:13 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what do I do to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] a CDA loan? Can't get a person to call me back from the CDA phone line. I have not missed a payment and live in the house. Please just an answer on how to proceed. The house is underwater by 50,000

Like | Dislike | Share | Posted: Thu, 03/08/2012 - 07:37 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Vicky!

Welcome to forums!

As your property is underwater, you won't be able to refinance the mortgage. You can, however, apply for a loan modification.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 03/09/2012 - 01:18 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello everyone!

As other posters have stated, I can't believe how many of us are facing the same issues, and none of our legislators have stepped in to help. I was planning on writing letters to my State delegates in order to attempt to get some relief. Here are the details of my situation:

Purchased condo in 2007 with CDA at 6.5%
Condo is currently underwater $80,000
Just got engaged and need to move into a larger home to start family

I was thinking of referring this issue to one of the investigative journalist teams to see if they can look into the program and try to expose how fraudulent and unwavering the State has been when enforcing CDA loans. Has anyone had any luck contacting representatives, lawyers, or investigative journalists? I feel helpless because I have no hardship, but really need to move.

Thanks for you input.

Brian

Like | Dislike | Share | Posted: Mon, 05/13/2013 - 05:56 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A year ago I applied for a mortgage loan to buy a new property with the condition that I'd rent out my current condo (with CDA loan) and was told that I couldn't get a new loan unless I could show rental income on my current property for one year... which makes no sense because I live there. How can I rent it? Did anyone else have this experience? So now I'm stuck like the rest of you. Who knew?

Like | Dislike | Share | Posted: Thu, 04/04/2013 - 09:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank Curious Guy and Another Guest for that information. I too have a CDA loan and I am looking to purchase a home because my family has increased in size and the area has been going down in terms of crime. My condo is underwater by $180K and I am current on my payments so the only option I have is to rent it out and I heard about the so-called "rental restriction" with CDA. I will be definitely emailing them and let them know I have to rent out...I'll be damn if I stay any longer.

Like | Dislike | Share | Posted: Sun, 04/22/2012 - 13:18 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I emailed everyone I could at DHCD including all the Executives and the Maryland governer asking why CDA was unwilling to help its customers and would not participate in any of the Federal goverment programs. They mailed me a letter within a week that basically said, in a nut shell, we would rather eat glass then help anyone refinance their loan.

They cant risk lowering their bond ratings and blah blah blah. These are are some of the most greedy people in the business and they are a government program! Unless the Federal goverment comes up with a program forcing them to help, CDA will continue to spit in their customers faces. It is literally sickening how disgusting of a program this is.

Here is the contact information for the CDA Exectutive Director

Frank B. Coakley, Executive Director (410) 514-7410; 1-800-222-3919 (toll free)
e-mail: coakley@mdhousing.org

Like | Dislike | Share | Posted: Mon, 06/04/2012 - 15:20 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well, haven't heard much in this regard!!

Like | Dislike | Share | Posted: Mon, 05/13/2013 - 21:42 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sometime this summer HARP 3.0 will be put in place to assist those with underwater CDA loans

Like | Dislike | Share | Posted: Thu, 03/21/2013 - 09:08 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi cole,

Well, that's quite strange!! I will suggest you to contact other lenders and apply for a loan. Check out what they have to say in this regard.

Like | Dislike | Share | Posted: Thu, 04/04/2013 - 22:16 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

That is good to know that I can write a letter to Bogman to get permission to rent. I took the risk and have been renting my condo, also under a CDA loan, for the past four years. Like others, I am also paying about $400 out of pocket so I am looking for other options - $400/month times four years is a lot of money...Are there any other options beside foreclosure? I am willing to take a delinquency credit hit but not a 7-year foreclosure credit hit. Any suggestions would be much appreciated.

Like | Dislike | Share | Posted: Sat, 06/30/2012 - 02:15 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi SandR!

Welcome to forums!

You can apply for a short sale in order to get rid of the property and the mortgage. However, you will have to prove your financial crisis to the lender in order to get qualified for the short sale.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 07/03/2012 - 00:55 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am also in the same situation! I am current, income has actually increased but I am looking to purchase a bigger home and CDA seems to prohibit renting. My bigger concern is that they do not offer its customers an opportunity to take advantage of any of the programs that are out here. I just sent an email to the head of CDA, Maryland's Governor, Lt. Governor, and the County Executive's office. We will see how this goes.

Like | Dislike | Share | Posted: Tue, 07/10/2012 - 14:09 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Bonironi!

Welcome to forums!

Thanks for sharing this with us... Do keep us posted what reply you received regarding the letter that you sent them.

Sussane

Like | Dislike | Share | Posted: Thu, 07/12/2012 - 00:18 | Post subject:

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