Stuck with an underwater mortgage, searching for options.....

As mentioned previously, you need to see if the condo loan is HARP eligible, meaning it is a Fannie Mae or Freddie MAC owned loan. If not, you may have some leverage with BofA to modify the loan regardless of income/assets. Most of the I/O loans BofA services were originated by Countrywide. If you have been following the media as of late, BofA has incurred a HUGE settlement to resolve many of the Countrywide loans issued during that time frame. My suggestion would be to locate an atty or someone that does a complete audit of the securitization of your loan and also audits the appraisal. I have seen many folks get modifications from BofA using this tactic. Hope this helps.Pat

If your loan is not HARP eligible, your only real option is to work with BofA. Expect to be laughed at, but don't let it discourage you. Before you start though, you need to re-think your position. Making the statement that you are going to continue to let this property suck $1,000 per month out of your life because the alternative isn't as moral, is kind of like taking a knife to a gun fight. If a Bank can make a decision to abandon a project, or jettison thousand's of loyal employees because it is "just a business decision", then as a consumer, you have to look at abandoning the property and giving up your investment in the same light. "It's a business decision". First and foremost, you have a moral responsibility to do what is right for the safety and well being of your family. The bank comes after that. A short sale should never be off the table. That said, don't let the prospect of being laughed at be an impediment for trying. I have seen people get some strange results. Strange, because based on their "Story", it would appear NOTHING could be accomplished and in the end, the bank blinked. You could be told "NO" five or six times before they finally say yes. Good luck to you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

If all her mortgage payments have been on time , I highly suggest to short sale and immediately get her into a different property. That way you can continue with renting out a property it will all be at a profit every month. That is what I would do. South Bay lender here to help. Call me at 310-713-2488

You don't mention if you've checked to see if the loan is Fannie Mae or Freddie Mac so you can do a HARP refinance - there is no income limit on a HARP refinance. 20-30% underwater is also OK. The property is now a rental, which is also OK under HARP. Contact a local California mortgage broker. Give them a full application, and they can zero in on all your options. www.HARP-Refinance-MN.com

A simple HARP refinance will work for the condo if your current loan is backed by Fannie or Freddie. Check these websites: https://ww3.freddiemac.com/corporate/https://www.knowyouroptions.com/loanlookupContact me if you have any questions. We also lend in CA. barb.lanis@1amllc.com

I agree, if you haven't checked yet find out if the property is eligible for a HARP refinance. Or, once she is no longer working you could go back to BOA for a modification. Short sale is a last resort, it will hurt her options for a long time but that may end up being your best bet. Prices area starting to come back but it will be a while before you'll be back to even.

Harp doesn't have the same HAMP income requirements. Get with a lender411 loan officer and talk about your situation

HARP and HAMP are to totally different programs, If you loan is on by Fannie/Freddie before June 1st of 2009, then you income/asset profile will not matter. We work with the BEST wholesale lenders in the country and service California. The word on the street is "if Ralph can't do it nobody can"Call me 954-274-7725 or email me the address(ralph@absolutelowrates.com) and name and I will look it up for you, a lot of people do it on their own and get a NO as a response, I have turned those NO's to Yes's by going the extra mile ...Ralph Guertin

The HAMP (Home Affordable Modification Program) guidelines do take into consideration the income of the entire household regardless of who is on the Note. I will be adimant in stating that you have a GREAT chance of using the securitization audit and BofA settlement to your advantage. I talked to a past loan client of mine who just received $34k from them. You may be able to use any amount owed you to help negotiate for a principal reduction AND modification. :)Pat

Just because Bank of America services the loan doesn't mean back in 2006 its wasn't a Fannie/Freddie unless you specially called and asked that question the B of A. As far as the baby, congratulation, but unfortunately is doesn't trigger any lending policy to kick in (pardon the pun) :)Ralph Guertin 954-274-7725 ralph@absolutelowrates.com

I know you mention that your income exceeds thresholds for HAMP and HARP. Their are no income thresholds for Harp! You need to see if your property is HARP eligible, that is what matters first for HARP. Here are the links to check, you need to check Fannie Mae and Freddie Mac, 2 different sites. https://www.knowyouroptions.com/loanlookup and https://ww3.freddiemac.com/corporate/Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

If you checked the Fannie and Freddie sites and your property isn't eligible, you will then need to most likely seek the help of an attorney who is experienced in getting loan Mods. Good luck and if you have any questions we are glad to help!

I have witnessed so many loan mod attempts through friends and family go no where with BofA that it is a bit of a gamble. Certainly one worth pursuing, but I would only give it until the middle of this year and if nothing has happened then short sale it. Your credit doesn't get impacted as bad as you'd think and will recover fairly quick. Short selling this year is important to consider due to the tax relief legislation the President implemented which is set to expire by year's end. If you short sell in 2014 (assuming this relief isn't extended) then you'll have pay taxes on the amount you shorted the bank as ordinary income.If it were me I'd short sell immediately so that the time clock for credit rebound starts sooner. Who knows, you may be able to purchase another rental property fairly soon with a better equity position and interest rate than what the loan mod outcome will provide, which will translate into cash flow. Cash flow is the fundamental reason behind having a rental property.

After reading this thread, I agree with Patrick's advice.