New Here...Starting LM process with WF....help!!

[GoodWitch]

Hello...I am new here. I have been reading posts and its been very helpful and infomative. Here is my story.......(sorry, but its a bit long)

We live in TX. Bought a brand new home in Dec. 2006 for $190,000. We have 30 yr fixed at 6.5% with Wells Fargo. Total PITI payments are $1773.00 per month. ALso, my home has remained steady in value, small increases but no decrease so far...thankfully. THings were great until hubby lost job (involutary...company was in trouble...low profits) in July 2007. He found new job in Dec 2007 (5 months unemployment) and the new job pays a little less also. Then I lost my job (company went out of business) in Nov 2008 and I am still looking for work. We kept paying one payment per month but got further and further behind. We are now 3 months behind (owe...may, june, july) We have spoken with wells many times and they have asked up about doing the workout plan. I explained to them that we could bearly afford one payment per month and no way would we be able to handle a higher payment per month. We really had high hopes of hubby getting a good bonus (boss told him it was a go) and us being able to get caught up completely but now boss says the bonus program is temporarily cut due to low profits. We want only to save our home and keep living here.

I got all our financial info ready and called today. Called the number off the letter they sent us about loan mods....866-488-2028. She took my info 3 times since her computer kept timing her out and we have to start all over. that was frustrating. according to our income/expenses we have a monthly surplus of about $85.00. She said they could offer a 4 month "special forbearance" where we pay 1889.00 for the first 3 months and then a balloon payment of over $7000.00 on the 4th month. #)&$($(&(* ....are you kidding me??? ....I told her if i could pay 7000.00 in one chunk that we would not be in this situation to start with. I had told her at the beginning of the call the we wanted to be considered for the Gov. HAMP program and according to everything i have read on it, we seem to be the perfect candidates for it. So, I asked her if that was what this "special forbearance" was. She said NO but she then asked if that is what i wanted to apply for. HUH...that is what i had been telling her all along! She finally said she could mail me out a package to fill out for that program but she really did not seem to want to give me that option at all.

I know this is just my first call to them about the loan mod process but I already dread the process and I wont sleep well until I find out if our home is safe.

Thanks for reading my long post and I welcome any and all comments and advice you can offer.

Now, is if 5 o'clock somewhere cause i need a ****tail! lol

[Evan Bedard]

Hi goodwitch welcome and thank you for joining the forum!

I know this is just my first call to them about the loan mod process but I already dread the process and I wont sleep well until I find out if our home is safe.

Thanks for reading my long post and I welcome any and all comments and advice you can offer.

Now, is if 5 o'clock somewhere cause i need a ****tail! lol

LOL yes this process does seem to get a little stressful.. But thats not too bad for your first call, some people never get offered anything...

You should just try again tomorrow because one thing with these lenders is it that different reps will say different things. Its weird but it seems like some reps just have no idea what their talking about..

[GoodWitch]

thanks so much for the welcome and encouragement. I will keep trying!

[Evan Bedard]

Your welcome and please keep us posted on your progress

You can also try contacting NACA they are a nonprofit organization and have helped many here on the forum as well:

The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization.

Here is the link to the site.

https://www.naca.com/index_main.jsp?language=null

[auroran25]

Good Witch

This site is a big help for people who are new to this whole process...

My husband and I are also trying to get our loan modified with Wells Fargo and were offered a forebearance plan as well and we, like you, were baffled how WF thought we could come up with a big balloon payment at the end.

Come to find out, through other helpful people on here, that the lump sum is usually just tacked on to the end of your existing loan once the three months is up and NOT due when said as LONG AS EVERY PAYMENT IS MADE NOT A MINUTE LATE for the 3 or 6 month forebearance term .

We turned down WF offer for us because we didn't know any better and the terms were not explained well (at all actually) and then had to start the whole loan mod process all over again with new financials etc.

Make sure you talk to someone again and see if they can explain it to you better before you turn it down like we did and make our mistake.

Good luck,

[GoodWitch]

Still waiting for them to send me the package to fill out by mail. hopefully it will arrive soon and I can fill out everything and fax back to them.

[GoodWitch]

Well, when 2 weeks passed and still no package in mail to fill out, I decided to call back. First I spoke to the exec line and was told that I should speak to LM dept and see if they could offer the "special forbearance" plan again...and she did explain this time that once we completed the first 3 months of the plan, then we would be considered for a loan mod and the balloon payment "might" (no guarantees) be rolled into the newly modified plan....if we were approved for any of their possible solutions, loan mods, etc. SHe then said she would (once again) mail out the package for us to fill out and fax back to them. THen, she transferred me to LM dept and I spoke to them next... I confirmed that all the info she had for our financials was correct and she offered the "special forbearance" once again. It is for 3 payment of 1890.00 (which is more since our normal monthly payment is only $ 1773.00) and the final balloon payment of 7700.00 ! Ok, Yikes ! , but she said they would be reviewing us for the loan mod and that balloon payment may be able to roll into the new mod...IF ...IF....we are approved for one. It is so uncertain but I dont really feel we have much choice since we really want to keep our home and we really think we can squeeze even tighter and pay the 3 months.

Please pray for us that this works out and we get the mod with a lower payment.....I am not asking for a lot off, maybe just a payment of around 1600.00 or so and the past due amounts be rolled into it so we can get current and remain in our home. We just want to get back on track and i hope and pray this works for us. I am so stressed about it all lately!!!

Thanks so much for the great advice. Reading this forum has helped me a lot...in just knowing what to expect and to be better prepared for this!