Built in 2007.HOA $145, taxes $800ish per year.Rent is $1195 per month. 

If you have a mortgage and HOA fees then I can see the problem. 

This is a 8 unit building with $189 HOA fees. 

Some of the numbers are:Original Mortgage = $104K FHA Loan @ 4.25%Mortgage Balance: $97KMortgage payment+PMI+Insurance+Taxes (all 2014 numbers)+HOA=$1010/monthRent: $1050/month Currently town-homes sell for $127K (same # bed/bath)I have a desire to buy an apartment in DC if it makes financial sense.

She currently owes $282,000.PITI is $2,084 and with HOA equals $2,249.

Friday:  Took 2 of my nieces snow skiing and spent too much time on the phone arguing with some HOA drone about an issue that should have been settled quickly.Saturday:  Skied with friends, negotiated a pretty good deal on my new skis at our local shop, and attended our cabins' HOA board meeting (different HOA) where I am advising on a foreclosure.Sunday:  Did a bit more research on the skis I am buying and watched our Seattle Seahawks sneak their way into the Super Bowl!!!!

To influence this you could offer the mod at 9.25% without ACH and 9% with ACH.Set the mod up with a  tax escrow so you don't have to monitor taxes.Since the borrower is up to date with tax and HOA, you could probably limit the forbearance to about 6 months, requiring the 6K up front and 100% on time payments during the forbearance.If the collateral is in an HHF state, you can encourage the borrower apply for it during the forbearance period. 

Came back to find out that we had missed a governing document in the HOA that mandated the home was owner-occupied for a period of one year, then it had to be approved, and the rental cap was a low 7.5%! 

I complained to the HOA not sure what the HOA did , but they are no longer there.

While it's all negotiable, I've never had an HOA settle or discount assessment liens.