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B Stevens · 09-21-2009, 04:51 PM

It is time for me to make a decision

Beginning here 5/1 ARM I/O Wells Fargo Mod

and then today -

After my paper work was faxed to a M. Heil at WF Exec on 8-28-09, I received a phone call today letting me know I was too far under water to get a permanent refi to a fixed rate. I am not late on any of my payments. My investor is not Fannie Mae or Feddie Mac so they are not willing to reduce principle or HAMP me.

I was told in an effort to assist with my hardship, they would lower my interest rate on my I/O to 3% for 5 years. This would bring my 1st down from $2900 a month to $1975 a month. Taxes and Insurance are included on both. Without taxes and insurance, it is $2145 reduced to $1225. No trial period, no back end balloon. It seems by working out the numbers, my investor (whoever it is) is basing the numbers on the current value of the home and the current I/O interest rate (maybe .5% less) than the current rate. So they obviously based this on the cost of me defaulting with no fight and what a new buyer would pay.

Now the hard part. M. Heil told me there was no other option available with my current situation. If I do not accept it, there won't be another option.

Option 1 - Take the deal. This saves me the trouble of moving and about $50K over a 5 year period. But it also is a new contract and the fraud I found will be null and void leaving me with no legal power in 5 years when this MAY become an issue again.

Option 2 - Reject the deal. Stop making payments all together, claim fraud and breech of contract. Delay the non judiciary forclosure for about 1 year at least. I could save about $45K in 1 year of no house payments and have my wife be the primary buyer on the next house with that down payment.

I do not have the contract in my hands yet to read any fine print. What to do, what to do?

09-21-2009, 04:51 PM	#1 (permalink)
B Stevens Senior Member Join Date: May 2009 Posts: 124 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	After 8 1/2 months with Welld Fargo It is time for me to make a decision Beginning here 5/1 ARM I/O Wells Fargo Mod and then today - After my paper work was faxed to a M. Heil at WF Exec on 8-28-09, I received a phone call today letting me know I was too far under water to get a permanent refi to a fixed rate. I am not late on any of my payments. My investor is not Fannie Mae or Feddie Mac so they are not willing to reduce principle or HAMP me. I was told in an effort to assist with my hardship, they would lower my interest rate on my I/O to 3% for 5 years. This would bring my 1st down from $2900 a month to $1975 a month. Taxes and Insurance are included on both. Without taxes and insurance, it is $2145 reduced to $1225. No trial period, no back end balloon. It seems by working out the numbers, my investor (whoever it is) is basing the numbers on the current value of the home and the current I/O interest rate (maybe .5% less) than the current rate. So they obviously based this on the cost of me defaulting with no fight and what a new buyer would pay. Now the hard part. M. Heil told me there was no other option available with my current situation. If I do not accept it, there won't be another option. Option 1 - Take the deal. This saves me the trouble of moving and about $50K over a 5 year period. But it also is a new contract and the fraud I found will be null and void leaving me with no legal power in 5 years when this MAY become an issue again. Option 2 - Reject the deal. Stop making payments all together, claim fraud and breech of contract. Delay the non judiciary forclosure for about 1 year at least. I could save about $45K in 1 year of no house payments and have my wife be the primary buyer on the next house with that down payment. I do not have the contract in my hands yet to read any fine print. What to do, what to do?