foreclosure question

[B65]

As of today I am 3 months behind, wells fargo/fannie mae.Wells told me yesterday that fannie mae probably will not loan mod because of negative equity we owe $295k house value is 260k, but we can try... They did say unless all 3 months were paid by 15th of april foreclosure process would start (sent this to me in a letter) last week.
The lady on the phone (very nice) said if we pay one month it will stop them foreclosing for a month, so they could see if it could be loan modded. if we kept paying the next month then we could put off the foreclosure until the end of summer... giving us more time to find a rental etc and loan mod enquiry...


Is this correct? what if i pay one month by April 15th and they still start foreclosure at the end of april because i did not pay all 3 months???

also if I did this by paying one month and putting it off I could try to sell it short sale then at least i would qualify for deed in lieu.....
benefits of that are out of chapter 7 it is 2 years to be able to get a mortgage, foreclosure is 3.....

so if i pay one month will it keep them from foreclosure for another month?

[StartingOver08]

This is a common Wells Fargo trick - you send in one payment, they put it in the suspense account - they start the foreclosure anyway. Wells does it all the time.

[B65]

wow really

good to know..... i thought to start foreclosure you had to be 90 days delinquent if you made one payment it would make you 60 days... oh well i cannot afford to take a chance and lose that kind of money.
not having much luck with rentals right now so homelessness here we come.

[TEW]

Go find an apartment and don't waste your money IF you are getting rid of the house.
You can do a deed in lieu as long as you don't have a second mortgage on the house.
A sort sale is no benefit to you. They are very hard to do because the payoff changes daily

[TEW]

This is a common Wells Fargo trick - you send in one payment, they put it in the suspense account - they start the foreclosure anyway. Wells does it all the time.

Yup

[B65]

they said

to do a deed in lieu it has to have been on the market 90 days, I took it off the market after a year last october when i filed bankruptcy so they wont accept a deed in lieu.

ps i have 3 children 2 big dogs and 2 cats and apartment will not work couple that with bad credit, I live out in the country... the sticks.. I have had adverts in the paper and craiglist.... not much response....... every area here in the states is very different.

[StartingOver08]

Also the banks are not willing to do deed in lieu's either - they just want to foreclose, especially if you have a second mtg.

[TEW]

Have you gotten a cure notice yet?
look for a lease to own there are lots of them out there.
You can also sign a consent for judgment if you don't want o go through the foreclosure. WF may not even talk to you about it.

[B65]

im not sure

what a cure notice is.. I got a letter of demand saying pay this by april 15th or we will acelerate foreclosure.
I have had the offer of one rent to own, Bad area though, I called lots of realtors and ads in papers... i have 2 possible rentals trying to pin them down today...

what is a consent for judgment ??

Thanks...

[sivuh5]

I have Wells Fargo also... this past summer I fell behind on purpose in order to try to force a loan mod, and it worked.

Once I got behind three months I contacted them and said I wanted to stay in the house, what could they do to help. They said they would put my loan into the modification process, but that I needed to make a payment of one month as a "good faith" gesture. So I made that payment that day on the phone.

They sent paperwork asking for my basic financial information - income, assets, employment, etc. I returned it to them. Thirty days later I got a letter saying they were in the process of modifying and that in the meantime here were the new terms of my loan - 1/2 payments for three months, followed by one large payment on the first of the fourth month that was the equivalent of the total arrearage. I knew I could not make that fourth huge payment, but I signed the agreement anyway in order to keep the loan in the modification process. Figured I'd cross that bridge when I got to it.

I made two 1/2 payments and in the third month I got a letter saying they had completed the modification and here were the new/new terms of my loan - reduced interest rate from 7.625% to 5.25%, new payment reduced by $400 per month, arrearage added to the total loan amount increasing the amount I owe in total from $186K to $195K. They never asked for any kind of appraisal or market analysis on my house.

I signed that agreement and the first payment date was 11/1/08. When I tried to pay on line, my account was still disabled, so I called them and they said no payment was due because the payment that I had made "in good faith" was being applied (it had been held in suspense). Then for the next two months, I had no payments, because the 1/2 payments I had been sending in were applied. I ended up making my first payment in January of about $200 to make up the difference. Then resumed normal payments of the new amount in February 2009. I had originally stopped paying in June (last payment was May). So they basically deferred 6 months in addition to the interest rate reduction.

The whole time I communicated regularly with their Loss Mitigation dept., never the Collections people. Loss Mit was very kind to me and as long as I kept saying I wanted to stay in the house they continued to try to keep me informed of the process and give me hope that it would work out. The one or two times early on that I dealt with the Collections dept they were rude and not truthful with me.

I hope this helps you somewhat. My experience with Wells has been good. I now have a loan I can afford, although I do now owe just over what my house is worth. I had tried to negotiate with them before falling behind, but they wouldn't talk with me and because my credit was bad there was no hope for refinancing. I filed Ch 7 BK in Feb
09.

S.

[sivuh5]

B65 - I forgot you want to surrender the house

... I would say that if you get in touch with Loss Mitigation at Wells and work directly with them, you will have the best shot at buying some time. Tell them you want to stay, even though you don't. Make the one payment and they'll hold it in suspense... I believe you'll get it back if the foreclosure proceeds; they did not apply mine (remove it from suspense) until after I signed the final mod paperwork.

Good luck!
S.

[B65]

thanks for that..

did they extend the term of your loan, ie 30 to 40? also after the 3 months of half payments... did they want a really big payment on the 4th?

[StartingOver08]

... I would say that if you get in touch with Loss Mitigation at Wells and work directly with them, you will have the best shot at buying some time. Tell them you want to stay, even though you don't. Make the one payment and they'll hold it in suspense... I believe you'll get it back if the foreclosure proceeds; they did not apply mine (remove it from suspense) until after I signed the final mod paperwork.
Good luck!
S.

This part is not true. The money you send them NEVER gets refunded when you are in arrears. Kiss the $$$ goodbye if you send them any

[sivuh5]

did they extend the term of your loan, ie 30 to 40? also after the 3 months of half payments... did they want a really big payment on the 4th?


They did extend to 40 years. After the 3 months of half payments they said I would owe one huge payment ($12,000), and said if I did not agree to those terms they could not continue with the mod. I agreed to it, although I knew I could never make that $12,000 payment. It never came thru because the mod overrode it.

[B65]

thanks

I private messaged you...