HOPE Loan Modifications with WellsFargo?

[scb2k]

Hello guys first I want to thank the MODS and owner of this useful site!

So let me give you some information regarding my situation. I have a first and second mortgage with Wellsfargo with a balance of about $565K. I am up to date with payments, but have seen a decreased of money due to cutbacks at work and no more overtime (car industry and Human Resource). Also currently I am paying about 50% of my monthly income to pay my mortgages, one of which is interest only, which I had set at 8.25% for a full year paying $1100K, thankfully I called the bank and they put that amount on a variable which cut my payment in half!

Anyways I am scarred that I will be loosing my house and not be able to keep it. So I was reading more on the H4H program and wan't to do it, but not sure of what steps to take. I called the bank but they told me that I would need to try their modification first, I wan't to just do the H4H program, is it possible? or is there guidance that must be follow before doing that program as a last resort, due to the potential losses to them?

I was hoping that someone out there can provide me with guidance.


Thank you in advanced.

[scb2k]

Oh yes all the hardship letter samples include verbiage relating to being deliquent in payments and such, must I be deliquent in payments before the bank can assist?

[Moe Bedard]

With the H4H program...........the investors on your loan would need to be participating................so they may not be...........you would need to ask that specific question. Also the investor on your second would need to agree to release the lien and extinguish the loan...........and accept nothing.

These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home

[scb2k]

Moe Bedard Thank you for your answer, I had put this issue to rest. I was able to stay current on my loan. However the hardship is coming in March. I was informed that I will be loosing my job in March 2010. I will be able to continue making payments through that date but after that it's all up in the air, the only income coming in will be 52K which is a complete reduction of well over 70K.

Should I contact the bank now and try to work something or will I be declined for a modification since, I'm current and have not taken a hit to my financial situation.