Wells Fargo loan mod offered, but...

[pinger]

...30 minutes after I received it, I received the reinstatement quoted from the foreclosing lawyer and it was a much better deal (I think).

Hi, I'm new here and am very glad to have found you all. I'm sorry to see so many folks having the same trouble as myself. I have to say, though, WFHM has been fairly helpful in working with me. I wish all here could say the same. Good luck to you.

In the meantime, maybe someone can give me direction.

Short story long, I began contacting WFHM back in September '09 about forthcoming problems due an illness that had reduced my wife's ability to work. WF set a moratorium that would have allowed us to pay back a lump sum of ~$10K in February. I let them know we would not be able to pay it and they closed this file and opened a new file after sending them 2 financial packets. Checking with them twice a week we were offered a loan modification on March 20th. It changed our term from the existing 28 years remaining to 40 years (with a contribution of $1785.00) and the note actually dropped by $10.00/mo (and my wife is now doing better and back to her normal work schedule). Just after I faxed the the signed agreement I received a reinstatement quote from their foreclosing lawyer (quote included all missed payments, late fees, attorney fees, etc). It was for a total of $13,800.00 whereas the loan mod was adding $17,500.00 to the end of the loan and another 12 years of payments.

So, I called to have a hardship withdrawel made from my 401k to meet the loan reinstatement as opposed to following thru with the loan mod (funny thing too. In January, I told WFHM I just wanted to do this to begin with and they almost begged me not to touch my 401K as they would fix everything with the loan mod). I then had WF cancel the loan mod on Friday 3/21. Today, Monday 3/23, I received a Notice of Seizure from the Sherriff's office. My funding should be in for the reinstatement on Wed 3/25 and I can have it overnighted to the lawyer possibly by Friday 3/27 (the quote is good until 4/2). Speaking with their law office today there is no sale/auction date set. But, they can begin advertising the sale for 30 days.

My question is did I make a mistake in not taking the loan mod? Could they still take my home after I send them the reinstatement?

Thanks in advance for any advice

[Moe Bedard]

Hi pinger,


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

If you pay to reinstate the loan.........I believe the only way they would be able to accelerate the foreclosure process is if you were to default again..........but clarify that with the foreclosure attorney just to make sure...........

[pinger]

Thanks ***. Much appreciated.