Reduced Property Values- Many people jumped into the rental property market when times were good and creative financing programs allowed them to buy second or even third homes with 100% financing and little proof of income. But now as banks have tightened up and property values have dropped many investors are finding they owe more then the house is worth and they can at best get a loan for 75% of the value of the home.
Not Enough Income- Because many of these loans were purchased with no doc or stated loans they are very hard for the owners to refinance using their actual incomes. Stated loan,no doc loans and high DTI loans are long gone so if you need this type financing and do not make enough to debt ratio properly you are in big trouble.
