So I need some help and some guideance.
Here's our story.
Purchased house in Oregon City, OR 97045 in Dec 2007.
House was purchased for $207,00
1st Mortgage was with WELLS FARGO HOME $172,000 @ 6.5% Intrest Only for 10 years
2nd HELOC was CHASE $35,000 @ 9.0%
Both original loans were all purchase money.
Refi'd the 1st Mortgage with Wells Fargo 3 step process in Dec of 2011 at 4.5% fixed rate 30yr with Wells Fargo.
1st missed payment was March 1st 2012 on both loans.
We've put $20,000 into the home with renovations and improvements. Home is now worth around 100-110k if we're lucky. On top of what we've done to the house, it needs a new roof, has a crack in foundation (basement leaks/floods) and a new landscaping job. To add we've had a baby (wife and I) and we have another on the way, so we are out growing the house quickly.
We cannot afford to throw money into something we cannot live with long term.
If this was a business, we'd walk away from it also.
Wells Fargo has been calling from day 17 or so. About a month ago, I sent them the cease letter. They still called, so I reminded them of the letter. They apologized, and said it wouldn't happen again. Well, it happened again today.
We received a couple letters asking for contact from Wells Fargo. We've also received 2 packets requesting information for loan assistance etc.
On July 5th, I recieved a letter stating that the foreclosure proceedings are have begun and they gave the firms information on who is handling the process. That firm then sent me and my wife seperate letters stating the process is started.
We'd like to delay this foreclosure as long as possible.
What are the options we have available?
Also, since the loan was refi'd, can we be sued? I've read that Oregon doesn't allow recourse loans even on refi loans. Is that true?
Also, my wife lost her job due to a over staffed lay off, and she's pregnant due in September 2012.
Can anyone help?