Non-owner occupied property has historically been part of a good diversified investment portfolio. With home prices declining however, many investors are looking to loan modification on non-owner occupied property as a way to salvage these investments.
Federal Loan Modification on Non-Owner Occupied Property
Most federal loan modification programs don’t apply to non-owner occupied properties or investment properties. These programs are designed to help homeowners save the home they live in, not to help investors make money or save an investment. So, HAMP or MHA programs are not applicable to non-owner occupied property, however investors may still be able to get a loan modification through one of the lenders “in house” programs. Lenders often still have an interest in modifying investment property loans, but the process is a bit more difficult.
Non-Owner Occupied Loan Modification Programs
The programs lenders would use to modify investment property loans are strictly their “in house” programs. With in house programs, the lender makes all the rules as the government does not play a role whatsoever. However, most lenders stick fairly close to the government regulations on their in house non-owner occupied loan modification programs. It is probably easier and less expensive for lenders to simply work a similar procedure on non-owner occupied loans, rather than design a whole new system. The difference is there are few treasury guidelines or regulations lenders face when looking to modify non-owner occupied property loans. To say it another way, homeowners have little recourse if the lender does not go through proper HAMP or MHA procedures. The success rate may be slightly lower for loan modification on non-owner occupied property, but these options are still available for investors.
California Loan Modification Attorneys
McFarlin LLP handles all aspects of loan modification for borrowers throughout California. Our Orange County and Los Angeles attorneys are available to speak with prospective clients and give you honest advice. With a matter as important as the loan modification on your home, it is a very good idea to consider hiring a qualified loan modification lawyer to represent you and protect your interests.