Pending Modification - Are you paying ANYTHING?

[Hopeful_in_VA]

Hello All!! I am new to the site - reading for a few weeks.
I just sent in our modification package to Wells Fargo.

Short version - purchased at top of market (590k) with the intention of staying in the home 3 years and then moving.
Fell behind on mortgage when our income dropped while switching jobs coupled by emergency expenses etc. We've been on a re-payment plan which is much higher that our original Mtg. Robbing Peter to pay Paul with all our other expenses mounting. Financial stress is taking a toll and we finally said enough is enough and broke our re-payment plan. Out mtg. rate is set to re-adjust next year AND we will go from interest only to P&I payment. Always thought we'd have the option to re-fi or sell..... clearly not now.
In 2 short years we've went from A+ credit with little debt to poor credit, too much debt and a house 200k below amount owed.

Finally the Q: Are any of you paying a portion of your mtg. while pending a modification decision?
We can afford to pay the original mtg. amount but NOT the additional 800$ required to pay back the additional 6000$ past due. Also, we will NEED a loan modification in regards to P&I payments set to re-adjust next year regardless of any re-payment plan.

[Hopeful_in_VA]

The question stems from me not wanting to throw money at a house that they may not let us keep. If this is making sense....

[miked2023]

I in the exact same boat as you (590K was our purchase price too!) Interest only - five years - set to adjust in Dec.

I just defaulted in May and won't be giving them a dime until a mod happens. If it doensn't, then short sale. If not that, then foreclose away!
I'm really not happy about any of this, I've just come to accept it.

For me not paying them works two-fold. One, the more behind I am, I figure the more likely they approve a loan mod as opposed to foreclosing. And two, while I'm behind, I'm paying off debts that I racked up while trying to make payments on a house I haven't been able to afford for at least a year. This way, whatever happens, at least I'll have a lot less debt and be able to move on much easier.

This is just what I'm doing, every situation is different - Different lenders have different ways of looking at things but I know BofA/CW for one wouldn't even talk to me when I was current.

But you're saying that you're already going through the loan mod process so I guess that's a little different. They may ask for a good-faith payment but you'll have to feel out your lender yourself and see what you think is best. But you're right, any payment you make may be just a total waste if you end up leaving in the end. For me, that's just not worth it right now no matter what. I have other bills to pay. Good luck!

[Hopeful_in_VA]

Thanks for the reply Mike... Those were my thoughts exactly! We are 3 months behind July 1st. But there is 2000 in a "reserve" with WF. If I pay 700 more than that will equal 1 payment and go towards the loan - keeping us 2 months behind. We planned on paying off debt and putting $$ aside pending their decision.

[raayven420]

I'm also in the same situation, I sent in my paperwork in April and haven't heard anything. I too havent made any payments for 3 months because I am sinking deeper in debt. My utilities are getting shut off, car is breaking down (which I need to get to work), so I think its not a win win situation anyway. They need to be more speedy aboput getting these modifications done so that less people would be behind.

[ILResident]

To answer your original question, yes I have been asked to pay 1/2 my mortgage payment while a decision is made regarding modifying my loan. (In the letter I received they called this the HomeSavers Forbearance Program). In my case I haven't made a payment in over a year so to start paying anything now with no guarantees of a mod or what it will be seems senseless. I feel as you do, I don't want to pay another dime if foreclosure is inevitable. I just can't grasp what the point of this program is.

[PERSISTENT32]

Try calling the Exectuive Team for Wells Fargo that *** has posted to help members in other posts, they usually get results 1-800-853-8516. All you can do is try. I had the same thing. I was on a forbearance plan making half payments. I was trying to get somewhere with loss mitigation and they were no help. I submitted my loan modification package in January. I called loss mitigation everyday.

Long story short I am now about to make my 2nd payment under the HAMP program. Just call them to see if they can put a fire under loss mitigation. My loan is with Wachovia I called Wells Fargo executive number first since they merged. They were very nice and someone from Wachovia called me back the same day. I had been trying for months to get approved for the HAMP program via loss mitigation. I was assigned a contact at Wachovia with a direct number and email. Now when and if I don't like the responses from loss mitigation. I called the executive team and they always follow up. After I make my last trial payment I will be calling them asking them to send me my perm. loan modification package.

Previous to this whole process I was 6 months behind on mortgage they put me on a repayment plan I could not met. Now my mortgage payments are little over 1k which is way more affordable. I also used the Ebook from this website.

I have told all my friends about it because it works. My friend was trying to get her loan modified thru Chase. I gave her the executive number and her paperwork was sent the next week.

[sammyt74dp]

Nope, We aren't paying a dime. Been recently denied for a Mod because DTI, and the person doing our Mod is $5 an hour overwhelmed newby that just started I am sure. we are 6 Months late and growing. There is a lot of Loan Modification Denials happening lately due to negligence by Wells Fargo loss mit. If you pay anything to them , you might as well take that pile of money and light it on fire in the back yard. Until they start actually wanting to "Work" with their home owners that have been affected by the economy and real estate market going in the toilet (and continuing to get worse) and If they won't have the professionalism to at least talk to us and help come up with a reasonable solution then we short sell our home for pennies on the dollar and it's a even bigger loss to them. This is just my opinion.

[raayven420]

does anyone know how ocwen is about modifications? I sent my papers in april and still havent heard anything from them except how they want their payments, because i havent made a payment in 3 -4 months