Help!

[frank55]

I own two properties an investment property which I have decided to go through Foreclosure and a principal residence which I bought for $900,000 and own $725,000. It it now worth around 650,000 and am struggling to make my payments. My payment without tax and insurance is $3800 interest only payment at 6.25% fixed for 10 years. Property taxes are about $9,000 a year, which I pay separately. I have tried to remain current on this loan until there was the President's announcement of the Home Affordability Program. Once the announcement was made I just meat the cutoff of the max loan balance for $729,000. I called wells fargo to try to apply for this program with no answer. I would like to go through NACA but am aware I can't do that until my investment property forecloses and I only own my primary residence. I filled out an online solicitation with WFB online and asked for the President's workout plan. WFB called me and said I have to go through a regular modification first and if I get denied then they will look at the Home affordability program. Is this right? They are asking me to send in a hardship letter, paystub, and expense sheet. I am not interested in a loan modification for 3 to 5 years I am looking at this in the long run. The only way I will stay is if they make this affordable to me and make my payment to the 38% of my monthly gross income. Should I send the information they are requesting and try for their modification or should I wait for my other house to forclose so I can go through NACA. I probably feel I have a better shot at the OBAMA plan through NACA. Is what WFB saying the truth that you have to go trough a regular modification before they even consider you for Obama's PLan. Any help is appreciated!

[LHarveyMadman]

When did you buy your principal residence? If you bought it before June 2007 (I believe), then your loan will not be backed by Fannie or Freddie. If you bought after June 2007, then you have to check to see what the "jumbo conforming" limits were for your particular location. The $729,750 maximum limit does NOT apply to every location. The maximum jumbo conforming amount for a given location was set at 175% of the median home price for that area, to a maximum of $729,750. So, if the median home price in your area was $300,000, the jumbo conforming limit for your area is $300,000 x 175% = $525,000.

The key element to the Obama plan is that it only applies to loans backed/bought by Fannie or Freddie. If not, then it will not help you. You can try to ask your lender whether either of these federal entities is the investor on your loan.

What is your new hardship?

[Moe Bedard]

If you are able to begin the process with Wells Fargo.........you may want to get that going.............so that you can see what options you have on your loan......but keep in mind that if you accept a modification through the Making Home Affordable plan......that is the only modification you will be able to receive on the loan......
The refinance option is only available to FannieMae and FreddieMac backed loans...........however, the modification option is open to loans backed by any investor............as long as they are particpating and the criteria is met.

NACA does not follow the guidelines to the president's plan because they are not a lender/investor/servicer.............they are a HUD approved counseling agency, and they put together their own modifications through their Home Save modification program............their modifications are low fixed rates for the life of the loan based on an affordability equation which the counselor would be able to go over with you after submitting your documents.................

here is the link to the contact information for Wells and the new program..........
https://www.wellsfargo.com/mortgage/.../stabilityplan