Student - mortgage - options

[lethstang]

My situation

Own a triplex. Back when I was an adult and had a good job, it made sense to own it with the tax breaks. Now, being a full time student again in med school....not so much. In addition, insurance and taxes have both conspired to bring my monthly payment from 1682, to 1920 a month (ouch).

I collect 1650 in rent when its fully occupied ( I occupy one of the units).

Recently I had some tenants completely trash the place which has cost me 10k I dont have living on a student budget (no you cannot take tenants to court over this. you can...and its easy to get the judge to rule in your favor, but landlord tenant law is so biased towards the tenant youll never see the money). this has maxed out my credit cards and has put me in imminent danger of missing mortgage payments.

i dont think id qualify for hamp, as 31% of my rental income of 1650 doesnt even cover my taxes and insurance. They dont take the 2k of student loan aid i get per month into account.

Whats the best way to handle this? Im afraid of being foreclosed on, because if that happens I will be unable to receive the federal student loan aid that most everyone gets to complete med school (via their website a foreclosure disqualifies you).

I have a VA loan.

I dont even think i would qualify for va hamp as my home is taxed as a commercial property, and i believe it has to be residential.

The save my home program only covers single family homes.

also an additional question - im thinking maybe to get the va to do a loan refund, in which they just pay off the mortgage and take the house. Does this go on my credit?

I would really like this nightmare to be over and just have to worry about med school like all of my classmates.

Edited November 26, 2011 by lethstang

[2ndTimeAround]

My situation

i dont think id qualify for hamp, as 31% of my rental income of 1650 doesnt even cover my taxes and insurance. They dont take the 2k of student loan aid i get per month into account. .

I submitted a similar FHA situation a few weeks ago - the owner goes full time to school. he brother (not on loan) is paying all the bills. In order to get his loan modified, the owner has to get a job, even a simple part time job.

Having a VA backed mortgage, is compared with an FHA mortgage. If you default on the loan, the mortgage bank is insured they will get their money. Meaning they will only modify your loan interest rate to 5%.

If you miss multiple payments only makes the situation worst. Your missed payments are added to the loan amount, making a larger loan balance.

If you want to keep your property, forget HAMP (it doesn't apply for you). What you need to do is an in house modification, needing to show another source of income, to show affordability. When your using what your collect in rent, only 75% can be shown as income. Compared to 100% if you have people living there contributing.

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