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.
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