I have Wells jumbo and am making payments - Can I qualify??

[gordon8555]

I am wondering if there is any chance I can qualify for a loan modification given the following:

- We have a jumbo 1st with Wells Fargo of $960k and a 2nd of $117k.
-We have been making on time payments.
-My wife is an MD and moved her private practice in April 2009. Most private practitioners rely on Medicare reimbursements for a substantial portion of their income. However, anytime a physician moves they must reapply for Medicare and then wait 90 days to 18 months before receiving reimbursements. Most other health insurance companies do not reimburse for claims until Medicare has reimbursed the physician and Medicare has not yet begun to reimburse (yep, it’s been 6 months since she applied). So her practice is being financed from our credit cards and our savings.
-My home business has taken a huge hit this past year and as my monthly gross now is the same as what I was paying my 4 year olds caretaker we have let the caregiver go and I am now Mr. Mom.
-Much of our living expenses over the past six months have also been paid from savings.
-Mine and my wife’s business and merchant accounts are with Wells Fargo, for what that may be worth.

Our original loan broker recommended someone who submits loan modification packages and I have spoken with this fellow. He charges $1600 up front for services which it would appear I might be able to do myself No guarantees, of course..

So my questions are: 1) Given the fact we have a jumbo loan and though barely able to make our monthly payments, is it even worth attempting to have our loan modified? 2) The loan mod fellow I spoke to indicated there is a risk of damaging our credit (now in the high 700’s) just for having applied for a loan mod. Is that true? 3) Should I be doing this on my own rather than paying someone ?
And, 4) if there is no down side to applying for a load mod. what else can/should we do??

And least I forget, I am so grateful for having found this site!

Thank you.

Gordon

[jakelabry]

Gordon,

1.) You would not be eligible for the government Making Home Affordable modification program (click here for eligibility requirements) so you would have to contact the lender for one of their "in-house" modification programs. If it would provide you relief, of course it is worth it. 2.) It does appear - just antecdotal evidence - that loan modifications can and do affect credit. I believe it can show as "paying less than agreed" amount. Also, quite often lenders won't work with you until you start missing payments and that definitely affects your credit. 3.) From what I've seen and read (here and elsewhere), modifications are best handled by the homeowners. It will take a significant amount of time and patience on your part. Nobody knows your situation better than you and nobody cares more than you do about your issues. This forum is an excellent resourse. 4.) Next steps - who is your lender? If they are listed here, read all threads related to them to get an idea of what they are like to deal with and any/all contact information available. Then just start calling. Be prepared with your entire financial history/life so you can answer their questions.

Good luck!

[gordon8555]

Originally Posted by jakelabry

Gordon,

1.) You would not be eligible for the government Making Home Affordable modification program (click here for eligibility requirements) so you would have to contact the lender for one of their "in-house" modification programs. If it would provide you relief, of course it is worth it. 2.) It does appear - just antecdotal evidence - that loan modifications can and do affect credit. I believe it can show as "paying less than agreed" amount. Also, quite often lenders won't work with you until you start missing payments and that definitely affects your credit. 3.) From what I've seen and read (here and elsewhere), modifications are best handled by the homeowners. It will take a significant amount of time and patience on your part. Nobody knows your situation better than you and nobody cares more than you do about your issues. This forum is an excellent resourse. 4.) Next steps - who is your lender? If they are listed here, read all threads related to them to get an idea of what they are like to deal with and any/all contact information available. Then just start calling. Be prepared with your entire financial history/life so you can answer their questions.

Good luck!

Thank you for the reply.

Our loans are with Wells Fargo and I have become an avid reader of the many posts from and regarding other Wells customers.

If we decide to proceed I think we will do so ourselves. I do see that some users are retaining attorneys at point in the process and that is always an option. But first things first; I'll make a call to Wells Fargo and try to get a "read" on whether to move forward or not. Hopefully making a call to WF is not enough to initiate any negatives to our credit rating.

Thanks again.

Gordon