I know the MHA program is so new that not many of us have had much experience with it yet, but I have a "technical" question for those who may have read up on the rules/details of it on the gov't site. It very clearly states that the home must be "owner occupied" which makes perfect sense. In our case, we originally moved out into a rental (for a year!) but are planning to move back in to (hopefully) successfully get this modification, as in the long run, it would be good for us to keep the home, despite some other obstacles. As long as we move back in prior to actually submitting the paperwork and officially requesting the modification, should we be ok legally? I do not want anything to jeopordize it, I don't want to lie, but I also didn't want to mention that we'd moved out. Anyone know?
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I think if it was the only home you have title to,( not purchased as an investment property) and you live in the property at the time of the loan mod, you would be fine.
The only problem I could think of is if you have a different address on your CR and they questioned it, but I don't really think that would be a problem?
But basically I believe the owner occupied part is loan mods aren't for people trying to save an investment prop, just for people trying to save their primary residence.
I don't have a lot of knowledge in this area, but it seems a safe assumption. -
Hi dingdong, thanks for your input. Do you happen to know what triggers addresses to be added onto the CR's? I think the best bet would probably be to be honest, and say well, yah, we moved out because we were losing the house, but moved back in when we thought we could save it! That really is the truth!! It dawned on me after your post that in addition to the CR address (which does show our rental) we also pay rent monthly, and if they will be requesting bank statements, which I assume they will, it will show that monthly payment. Good grief this is going to be complicated.Comment
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Applying for new credit with a new address would update your CR.
I don't think you will have a problem though if you didn't use your home as a rental (the one you want to save).
THe OO provision is just to exclude people who would want to try a mod on an investment property.
Go to www.loansafe.org and post your question there, you will probably get a more definitive answer.Comment
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