Wells Fargo Question on Assets!! Please help!

[sann1970]

How much in assets is too much to qualify for a loan modification?

We have approximately 20,000 in checking and savings combined --HOWEVER, we will be needing that money very soon. We have 4 children, our cars have TONS of miles on them (estimate of repair coming soon is about $6,000), our youngest daughter is in need of orthodontic care due to an underbite ($4000) and my husband needs some of the money to go to school to train for a different job, because due to massive job slowdown, he is now on unemployment. I explained all of this in a couple hardship letters (we have been trying to modify since April). I haven't been able to get a good answer about what exactly it means to be in imminent default. I have heard a lot of times this means no money to make the mortgage in the next month or two. The other thing we have going against us is that we are current on a 30 yr. fixed at 5.875. We have a monthly shortfall of about 1000 per month. Our ratio is very high now ... but if we qualified for 2% modification we would be in line for the 31%. I am desperately hoping that they will not make us get much lower with our savings because I just don't think we would recover (with our large family, etc. etc.)

[sann1970]

sorry -- I didn't mean to ask the same question twice - I couldn't find my other post and thought it didn't go through. I am very disheartened by the answer -- but thank you so much for the info. I appreciate it.

[delaysmom]

isn't it sad. that's your savings. to be honest, if i had been saving that, i'd go out and take advantage of the obama clunker money $4500/per car that gets less than 19 mpg, make a good downpayment on a reliable car or two if you can swing it. (then you're getting money toward a car instead of dropping $6000 on the one you have. also, if he's going to school, he should get rolling on it. i'm in the same place as you, 30yr 5.85 fixed. i'm at about 38% but i do not have any savings because i spent it on school. another thought: look up govt grants online, they offer alot to pay for higher education because obama wants all the stay at home moms to go back to work... good luck!