Wells Fargo/Freddie Mac Loan Mod Offer; Attn Cat

[theotherwhitewheat]

I've been attempting to modify my Wells Fargo serviced loan. Today they approved the loan mod and presented an offer. My current details are these: Purchase price, $~148K; loan balance ~$130K; 30 yr fixed @ 7.5%; monthly payment, $1252 P&I, T&I; 5 months delinquent, active in foreclosure with no sale date.

The new offer is this: Loan balance reduced to ~$123K; 40 yr fixed @ 5%; monthly payment, $907 P&I, T&I. Forbearance of delinquencies & late charges & some principal to the tune of $16,995.

This will finally cash flow positively for the first time, $40 monthly.

In your opinion, does this sound like a good deal?

My friend, justcharlotte referred me to you as she respects your judgement.

Thanks for your time.

[Evan Bedard]

The new offer is this: Loan balance reduced to ~$123K; 40 yr fixed @ 5%; monthly payment, $907 P&I, T&I. Forbearance of delinquencies & late charges & some principal to the tune of $16,995.

This will finally cash flow positively for the first time, $40 monthly.

In your opinion, does this sound like a good deal?

My friend, justcharlotte referred me to you as she respects your judgement.

Thanks for joining the community and I'm glad your friend referred you here. As you may know loan modifications are definitely never guaranteed so if this offer is affordable for your current situation you may want to take the offer. Most lenders have been offering better interest rates (for ex: 2% for years 1-5 and 3-4% fixed for the life of the loan) but that does not mean you cannot reapply for another modification a year or so down the line to try and get a better rate. I'm sure many others including Cat will chime in with their opinion on the offer as well.

[Justcharlotte]

Evan always a big help to me as well! thank you...C

[Evan Bedard]

No problem Justcharlette, we appreciate you sticking around and being a faithful member here in the forum!

[theotherwhitewheat]

Thanks for joining the community and I'm glad your friend referred you here. As you may know loan modifications are definitely never guaranteed so if this offer is affordable for your current situation you may want to take the offer. Most lenders have been offering better interest rates (for ex: 2% for years 1-5 and 3-4% fixed for the life of the loan) but that does not mean you cannot reapply for another modification a year or so down the line to try and get a better rate. I'm sure many others including Cat will chime in with their opinion on the offer as well.

Thanks for your input. I've decided to accept.

[Evan Bedard]

You are very welcome and that is a great modification as you are now saving almost $350 a month!

[Cat Damiano]

Hi theotherwhitewheat,


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

Thank you so much to Justcharlotte for referring your friend to our forum and your kind words. This sounds like the Fannie Mae modification, it is a very good modification and is still able to create an affordable payment. Due to the fact that your interest rate was fixed to begin with, the 2 percent floor rate would not have been available to you, and not necessary to get the payment to the target monthly payment ratio. If the loan is a fixed-rate mortgage loan or an ARM loan, then the starting interest rate is the current interest rate (the note rate). The lender will then reduce the starting interest rate in increments of 0.125% to get as close as possible to the target monthly mortgage payment ratio.

Congratulations on the modification!!

[Jeffrey L. Shurtliff]

Thanks for your input. I've decided to accept.

Getting any kind of a mod from Wells is in itself a great accomplishment!