For rental property to qualify for HAMP, the following conditions must be met as well as many of the prior HAMP conditions:
- >=2 mortgage payments must be due & unpaid;
- Borrower owns <= 5 single family properties;
- Rental property at issue is currently occupied by tenant as a principal residence or is vacant; &
- Borrower certifies intent to rent property to tenant(s) for >=5 years following effective date of the permanent modification.
Interestingly, where a property is occupied as a principal residence by a legal dependent, parent or grandparent of the borrower but the borrower does not charge or collect rent, the property is nonetheless considered a "rental property".
Also, there are no longer any occupancy / principal residency requirements under the HAFA Short Sale Program.
These are fabulous additions to the Making Home Affordable Program.
Landlords, be sure to ask your rental home's lender about a possible modification if you are behind on your mortgage. Help is out there.