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Originally Posted by Lorybz  Hi, this is my first time on this forum. I would really appreciate any advise.This is my story: My husband and I bought a house on July 2008 for $375,000 and our mortgage with Wells Fargo is for $300,000 and the vallue of the house now is about $325,000. Our monthly payment is $1590, (without excrows, just interest) 30 y, interest only the first 10 y. then int & principal. By the time of the closing we had an income of about $125,000 annualy. In October my husband's salary was reduced by 15% , and 2 weeks ago I was laid off . So now our income is about 60% less from what we used to do. We are on time w/ our payments and have never been late, we still can make the payments, but it's so hard, we have cut o lot of spends, but are afraid how long are we going to be able to do it. Would it be better to do the modification through one of these firms that do modification? Would it be faster than if we did it? How much do we need to show that we our short from our income. or do I have to show that i can cover all the expenses. How it works?
Thanks in advance for your advise. |
Welcome to the forum and I'm sorry your having to join like the rest of us. It would be nice if we all met under different circumstances.
First with the other companies check out what their fees are and what they are really doing. Second was your home insurance backed by Fanni or Freddie Mac? I have heard from others that their mortgages weren't so modification was denied. Do you have a 10yr interest only loan and then a into a standard 30 yr. fixed rate?
I am in the process of them reviewing my mortgage for modification due to loss of income and yes you will have to write a "Hardship Letter" and you will be giving them your budget, tax return, pay stubs the standard loan documentation. Know that this is a long process and if they tell you to stop making payments tell them NO and send in payments for as long as you can. Read more on these forums you will find wonderful advice.
Now on a personal note go to
www.daveramsey.com and find where his radio broadcast can be found in your area or listen to some of his past shows online. Then be prepared to join, it has made a world of difference in my viewpoint of money. His books Financial Peace, Total Money Makeover show you how to get money under control during times like this and how to pay off debts so if this economy happens again or goes on longer than expected we can survive. He teaches this from the practices he and his wife live by and how they over came after losing everything. He also has forms to use to design a budget, notify creditors and how to handle the negative calls we get from the creditors we owe money to.
I am fervently praying for all of us who are hit by the economy and circumstances we weren't completely prepared for. I am speaking from what I'm going through and what I read from others.
Keep up Hope it's the one thing no one can take away and helps us get through each day with a smile.
