| Do you have rental or investment properties that are | | | | modify the loan instead of foreclosing. How do you |
| causing a financial difficulty for you? Are the | | | | do this simply and clearly? The first step is |
| payments too high due to adjustable rates or do you | | | | determining the approximately market value of the |
| owe more than the property is currently worth? An | | | | property-if the loan balance is higher than what it |
| investment property loan modification is an option | | | | could reasonably sell for, you have some leverage. |
| that may provide the help you need. Here is some | | | | Secondly, if the rents do not cover the current loan |
| helpful information that you may be able to use | | | | expenses and the property has a negative cash flow, |
| when speaking with your lender. | | | | use a form called a Rental Schedule to prove this to |
| The fact is that as the market continues to | | | | the lender. You can also show how a new modified |
| deteriorate, lenders have become more and more | | | | payment would cure this problem. |
| willing to modify loans on all types of properties. | | | | Keep in mind that your lender is a debt collector and |
| While some of the government subsidized programs | | | | anything you say or give them can and will be used |
| are targeted at primary residences, many other | | | | either for or against you. Many borrowers contact |
| programs are available to investors. After all, when | | | | their bank to apply for an investment property loan |
| renters are evicted by the bank and properties are | | | | modification before they take the time to learn and |
| left vacant, it hurts the already decimated housing | | | | prepare. It is critical to prepare your budget, financial |
| market and costs the banks millions of dollars. | | | | statement and rental schedule before you speak with |
| Whenever it makes sense for the lender, they will | | | | your lender. This way you have time to fine tune it, |
| modify the terms of an investment property to keep | | | | make any changes and be sure that it will meet the |
| the loan performing. | | | | approval guidelines. Do not contact your lender until |
| The trick to getting a loan modification on an | | | | you know what you are talking about. Investing just |
| investment property is proving to the lender that it | | | | a couple of hours of your time now could mean the |
| will cost them less money over the long run to | | | | difference between getting help or being denied. |