I purchased a two flat that I lived in for four years. It has and FHA mortgage. I live downstairs and rented the top unit. Over this time I'd had multiple hardships including layoff. I continued to regroup. Tenant began falling behind on rent. I began falling behind on my mortgage. Began loan mod process. I was offered a job opportunity out of state. I took it. Fast forward, one year later. I'm finally able to make payments now. Property is rented out fully. They state the mod was denied, because I did not occupy the property. I lived there for 4 years. I left only for work, and have documentation for that. I told them that in the process. Can I appeal this denial? The next step is foreclosure. Or should I just sale the property? I want to keep it, but I don't want to loose my equity.
Lenders have no obligation to modify your loan. Foreclosure will result a deficiency judgment you will have to pay. You can always sell the property. However, you have other options that would allow you to keep the property and prevent foreclosure.
You will need to meet with a foreclosure lawyer to discuss your case. Typically there is only a very limited time in which you can appeal a modification decision. Also, the modification decision depends on the type of modification they considered you for. Most government backed modifications do require that you are living in the property at the time the modification is reviewed. If the property is rented out fully when the modification decision was issued, then you will likely not be eligible to modify the property under certain programs. The decision to sell the property is a very technical question that will require a thorough review of your financials, the value of the home, and your legal history. Unfortunately, you must set up a consult with a foreclosure lawyer to get any of these questions answered.
You should have 30 days to appeal a decision. You should contact an experienced foreclosure attorney before the foreclosure is filed. An experienced attorney will almost always get better results than you can on your own and maybe able to get a resolution before the foreclosure is filed.
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