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.