Wells Fargo Foreclosing Congruent w/ Hamp Modification, NC info needed, please...

[rankefam]

1st post, long time reader. Questions after brief history.

Wells Fargo is foreclosing on both our 1st and 2nd. We bought the home 6 yrs ago for $99,500 (appraised for $103,000) w/ Wells Fargo in a 2yr fixed, then variable. Refi. w/ Wachovia at 2 yrs. they did an 80/10 (appraised for 108,000). Then Wachovia was bought by Wells. Fell on tough times, and have been in "modification" since Aug of 10. Wells now appraises the home at 115,000, which is good? b/c the county raised our tax value from $89,000 to $103,000 last year. We would like the opportunity to sell, if possible.

Apparently you can't ask for an in house mod. after you're late, so this is a hamp mod.
Wells has verbally stated that both loans are in mod. but won't send any documentation. Wells has different depts. for 1st and 2nd loans,and they don't talk to each other. They now (as of last week) have collected enough (up to date) info to send the mod. to the underwriters. I have been in contact w/ both departments but the 2nd, foreclosed first. Court date 6/08/11, sale date 7/08/11 (approx. $12,000 2nd mort.). Now I have received notice of right to cure on the 1st mort. shortly followed by accelerated foreclosure. No contact on underwriters decision yet. (approx. $88,000 1st mort. right to cure, $8000). Contact is slow, unless they want something. Also we are on our second "case worker".

We stopped trying to catch up our mort. when our neighbors were foreclosed on after seeking a mod. My wife is almost 7 months pregnant w/ our 3rd, and unemployed since Jan. My job closed and I started a new one for less money, looking for a second. Bad credit score (now) and not much cash to move.

My questions:

Can Wells Fargo pursue foreclosure, while processing a Hamp mod. in North Carolina?

If not how can I get the correct documents to take to court?

If the court decides to let them foreclose, How can they sell a "$100,000" home for a $12,000 2nd mort. ? Doesn't that leave the 1st mort. unsecured? (slightly irrelevant if they foreclose on the 1st shortly after).

Speaking of selling, which the bank and I haven't, b/c of the "pending" mod. Can we try a short short sale, or even selling at all, now that they are trying to foreclose. How?

Has anyone had experience w/ cash for keys w/ Wells Fargo in NC?
(And just out of curiosity, with the gutted homes you see on these TV shows, is there any legal recourse that banks may have, if a homeowner does something like that?)

Is waiting for cash for keys a better option than deed-in-lieu?

Can you "walk away" in NC, and get cash for keys?

Do banks usually pursue recourse in NC, will I need to file bankruptcy?

If the foreclosure(s) goes through, I'm pretty sure I will be filing bankruptcy. How long should I wait to be able to include the mortgage(s)?

Thanks in advance for any answers or advice, Stephen

[Cat Damiano]

Hi Stephen,


Welcome to the forum and thank you for joining...........

Any questions regarding bk, and deficiency in your state would need to be asked of a local attorney and most will do a free consultation.

While going through the modification process on the first lien, the foreclosure process will continue, but a sale date is not supposed to be set until after a denial and all other remedies to help have been exhausted. If this is not the case, you do have help in your state available.

According to the guidelines for HAMP:

A servicer may not refer any loan to foreclosure or conduct a scheduled foreclosure sale unless
and until at least one of the following circumstances exists:

The borrower is evaluated for HAMP and is determined to be ineligible for the program;
or

The borrower is offered a TPP, but fails to make current trial period payments as set forth

in Section 8.3; or

The servicer has established Right Party Contact, has sent at least two written requests
asking the borrower to supply required information in accordance with Section 2.2.2, and
has otherwise satisfied the Reasonable Effort solicitation standard, and the borrower
failed to respond by the dates indicated in those requests; or

The servicer has satisfied the Reasonable Effort solicitation standard without establishing
Right Party Contact; or

The borrower or co-borrower states he or she is not interested in pursuing a HAMP
modification and such statement is reflected by the servicer in its servicing system and/or
mortgage file.

The servicer has resolved the Escalated Case in accordance with Section 3.3 of Chapter
I.
In addition, servicers may not refer a loan to foreclosure or conduct a scheduled foreclosure sale
in the following circumstances:
If the borrower requested consideration and is being evaluated for an FDD forbearance
plan; or

During an initial FDD forbearance plan or any extension thereof.




NC Foreclosure Help

You may also want to file a complaint against Wells Fargo with your Attorney Generals office for what is called dual tracking during the modification process if a sale date has been set on your first mortgage.

File a Complaint



There may be other members going through something similar that may be able to answer your additional questions and add to this thread. Also look around the forum as some of your questions here may have already been asked and answered. If you go to the top of the forum and do a search from the search tab, you can put in North Carolina, searching both threads and posts to see if there are other members with a similar situation.