Falling off the Fargo Wagon...

[almostdone]

New to posting, but have been lurking and reading for quite some time. Any advise on this would be greatly appreciated. I have a VA loan with Wells Fargo. It’s at 6.5% fixed for 30yrs, and have made every payment on time for the over 2 years that I’ve had it, well until Sept of 08. Some background…..I owned my own company for almost 7 years and had to shut it down in Sept of 07, I was in the Real Estate industry, but only the title search and signing dept. I bought my home in 06, very modest 127k home. Back then, I was making over 80k a year, and had absolutely no problem making my house payments, and I could have bought a lot more home. In Nov. 07, I got a job, making 40k a year. Well due to my business closing, I had to file BK in Jan of 08. Although I said I wanted to re-affirm the house, Wells Fargo didn’t want to, and it was also discharged in my BK in May of 08. Even though I was strapped, I still made my house payment of $1200.00 (includes tax, ins.) although it was a struggle, and usually made it sometime after the 15^th, each month paying a late charge. Well in Sept 08, I was out of work due to Hurricane Ike, and I feel behind for the first time. I called WF and they said because of IKE, I didn’t have to make a payment till Dec 15, I couldn’t believe it a break. In December I called, and was told there was no such program??? So I was almost 4 payments behind then. I went to the bank and made two…..Mind you, I never got a letter or call or anything. I then got with HOPE, and provided everything they requested. Dec 21, I get a registered letter saying if I didn’t come up with $3,600.00 or $4800 something by Jan 21, then they would start foreclosure. Meanwhile I’d been told to call every week to find out status of my mod. I called again, and the WF said I wasn’t in Foreclosure because I’m in Mod. I made another payment a little before the new years. I keep calling every week, and nothing, just telling me I had an adjuster it’s been assigned to, be no notes. When I asked how come my last payment doesn’t show up, they said it’s being held, and hasn’t’ been applied, I asked if I should keep making payments, and wasn’t given a straight answer…….so anyways, here’s my delimit..
I struggle to make my payment now of 1200.00 a month, with a bring home income of 2500.00 a month. Take away $500.00 a month for child support, $380.00 for car, and 133.00 for car insurance, and I have a whole $287.00 to keep the lights on, get gas to go to work, and provide food for myself. I had a roommate for a while, but since has moved. I can’t continue to depend on roomies to make my bills.
Here’s my thinking on the whole thing. My debt has been discharged, so they can’t come after me for $$ and damage to credit is already done. I would ask them for a DIL or try short sale, walk away, rent something a lot cheaper, and in a couple years, try again. I only have about 2 years left of paying child support. OR…….If God grants a miracle, and Well’s Actually lowers my APR, (from what I’m reading they don’t on a VA loan), and lower’s my principal then stay. Houses in my neighborhood are selling in the 80-90k range, and I still owe 125 on my house. Got any idea’s or suggestions???

[Moe Bedard]

HI almostdone,


Welcome to the forum and thank you for joining............

You may want to ask Wells Fargo if the VA will approve a short sale or deed in lieu first.......because this loan is a government loan and is insured against foreclosure, they will not reduce principal.

Call Wells and ask what the options are on the loan.........
Wells Fargo executive team
1-800-853-8516



You can also try NACA and see if they may be able to help...........they are a HUD approved non profit counseling agency.............
click on the link for the info............
https://www.naca.com/refinance/refinanceTenStep.jsp

[Byram_MS]

Almostdone, I was in a similar situation with Wells Fargo. My husband lost his business last year and as a result, we lost more than 50% of our income. We fell behind on our mortgage and asked Wells Fargo for help. They referred us to their Home Preservation Program and did a modification to our loan. They rolled the 2 payments we were behind to the end of our loan. They did not pay the taxes or the home owner insurance. Those are not included in our mortgage loan. I asked the Home Preservation representative that was assigned to us for a long term solution with our mortgage nightmare. At the present time we have:

** Monthly mortgage note of $1265.00
** A 10.2% ARM
** Behind in 3 years in property taxes ($1500 yearly)
**Current on house note and
** Current on Homeowner insurance that runs us $172.00 quarterly)

We are currently working with NACA (Neighborhood Assistance Corporation of American. I just received word from NACA today 1/22/2009 that they have submitted our paperwork to Wells Fargo asking Wells to accept the new load modification they (NACA) have determined based on our current financial needs. This is my first time dealing with NACA but they are free open to the public service organization. My husband and I start the NACA process December 21, 2008.

I hope this helps.

PS: NACA suggestion to Wells

** 5.21% fixed interest rate
** $713.00 month principal and interest
** Escrow account (taxes $145, homeowners insurance $64.00)
** Total monthly mortgage payment would be $913.00

I am praying and keeping my fingers crossed.

[Moe Bedard]

Byram..........your loan isn't a fixed VA loan...........so VA isn't your investor...........you have very different options that would be available to you from your investor then the member above because the workouts are up to the VA in their case........


Good Luck on your mod!

[Byram_MS]

I noticed that you refer many of the poster to NACA. Do you know what NACA's success rate is for loan modifications with Wells Fargo?

[almostdone]

WOW, rate can't be adjusted, and principal can't be adjusted???
What about the buy-back, I can't remember the name, from the VA. Should i be contacting them also? I've had my mod in at Wells since December 8, 2008...on Jan. 09 it was assigned to an adjuster, i call twice a week, and no just tells me it's inthe system, and no foreclosure while i'm in mod.
They ask me every time, if i intend to keep the house. Kinda a blessing i guess, that they chose not to re-affirm my loan, then i'd have bad credit. Since the time my bk has been final...my Fico is in the 690 range. My late house payments don't report, they can't.

Byram....good luck with yours!

[Moe Bedard]

We have a couple of other members dealing with Wells Fargo and the VA and they are having a really hard time of it. Everytime they call the VA, the VA refers them back to the servicer..............the success story with Wells Fargo and the VA went through the executive team at
1-800-853-8516

to try to invervene with the VA.............it took a while but they finally were offered a mod............here is that story for you to see the steps that were taken and the workout that was finally given..........
Wells Fargo/VA SUCCESS!!

Byram........as far as success rate with NACA, I don't have that information..........the main hold up in many of the workouts is the investors on these loans. NACA does work to try to negotiate with these investors and they are helping many.........they have been around for over 20 years and there mission is similar to ours and that is to help as many members as we can to have a successful outcome for free.

[Byram_MS]

Thank you. Just one more question. When Washington talks about bailing out homeowners what do they mean?

[Moe Bedard]

I have not heard of Washington bailing out homeowners........there attempts at what they may be calling that and all of the programs that the government has put together have not been accepted to warmly by the investors. We just see the money going to bailing out the lenders. Hopefully that will change soon.............

[almostdone]

02/02/09 Update....So i got a letter over the weekend, telling me per our discusion (i never had one with them), that i've been granted a forebarrence. It says i have unitl 03/28/09 to make a payment of $5800.00 or foreclosure process would begin. I'm going to call them today and find out what it's all about, Im behind for Nov, Dec and Jan. Although I've been saving my money, it's gonna eat up what money i'm getting back from tax return, and then in a couple months, i will be in the same shape again, behind!! I hate to walk away, because i had put so much into this house when i had the better job and extra money, but i also hate struggling each month......They want me to sign this form and return it, i'll update as soon as i call this evening.

[almostdone]

02/04/09 update:
I called concerning the letter i got giving me till the 28th of March to make the $5800 payment. I was told that this would give me time to see what expenses i can cut, because according to my credit report, I have $-28.00 deficit. We went over figures again, and they changed my CC payment to more hence me having a deficit. I explained that two cards on there should not count, as i'm just a AuthUser, and i am not responsible for making the payments, so we should have a surplus. He said he would note it.......He also said, they don't expect me to make the $5800. payment, but some of it, and to call on the 28th with new figure(budget) and the remainder of what i didn't pay would be added back when my loan goes back into modification. They did send me a statement, showing the payments i made in december being applied to my balance. Kinda crappy as i made them in December, but were not credited until January, reducing the 1098 intrest paid amount for my 08 return.