Pending Divorce - Cannot afford mortgage - Denied modification

[farmdwg]

Hello there... Found this site last night after getting a loan mod request rejection from Wells Fargo... So if this is the wrong spot, I apologize.

Here is my story. I am in the middle of a divorce and I have already started my alimony payments to get the "clock" started. With that, I no longer can afford my mortgage payments.

Both of my loans are with Wells Fargo.

First - Wells Fargo Home Mortgage - Interest Only, 30 yr fixed, 5.25%, $359k
Second - Wells Fargo Home Equity - 5/1 ARM, 6.5%, $89k

The value of the house is ~180k - 200k.


I applied for a loan modification (principle reduction) in hopes that they would see that I can make the payments for the market value of the house. Well Wells Fargo Home Mortgage (1st) denied my request. So I called this morning to the "Presidents" number and talked with someone that would actually talk to me and give me more detailed information about the letter I got. She went on to say that Wells Fargo does not do principle reduction modification. I was like, well if my house goes to short-sell or foreclosure, Wells is going to have to write off the difference any ways why not work with me. She replied that the write off is a last ditch effort.

Wells Fargo also has sent an accelerated letter saying that I need to come current or the house will fall into foreclosure. So I called our realtor so that I can get the house on the market quickly.

My question is wondering if Wells Fargo does in fact refuse to do principle reduction modifications.

What other options do I have here?

Thank you.

[SillyWorld]

If the Mortgage payment is more than 31% of your GROSS income then call or go to NACA.com website click on save my home and follow the dorections if yopu want to keep the home and see what they can do

[SillyWorld]

OH and Welcome to the forum, read around theres many here in the same boat, but do not deal with the bank they will drive you into foreclosure

[farmdwg]

Thanks for the information... My combined house payment is $2200/mo which is not 31% of my GROSS income. Thoughts?

[SillyWorld]

So if Mortgage payment with Taxes, Ins, and anyother fee's 2200.00 a mo, then your Gross income needs to be $7180.00 per month, if you make less then you would qualify, and as long as the house value is less than $ 790,000.00

[farmdwg]

Right.... $2450 is mortgage plus properly taxes. I make more than $7180 and the house is worth maybe 200k on a good day.

Alimony payment is killing me. I guess short-sale here I come.

[afishym]

farmdwg,

Please dont' give up that easily. Contact NACA and start the process, let them tell you that you make too much. It was my understanding that they use your Net income, not gross, and the figures are not exactly at 31% (at least it wasn't in my case). Everyone's situation is different and I know people who have gotten modifications done who may seem to make too much. SO DON"T GIVE UP!!! There really is nothing to be gained from a short sale, the agent gets paid and the bank and you walk away with nothing! Your credit will only be a pinch better than a foreclosure. FIGHT FOR YOUR HOME!!!

Not sure what state you are in but NACA is coming to several states or start the process online right away. https://www.naca.com/index_main.jsp , See AT-Risk Homehomeowners and HomeSave Program (ignore any info about volunteering or fees and get just get started) Also, Look at the new videos from latest "Save the Dream Tour," Wells Fargo is mentioned as being one of the companies they have agreements with.

[farmdwg]

Okay... I've requested a phone conversation and the earliest apt available was next week. I'm wondering if I should hold off putting the home on the market until then. My realtor is certain that I will have offers next week.

[CW California]

farmdwg
don't let the realtor pressure you. You have to have permission to short sell your house. You need to qualify to do so and usually you need to have it on the market for 90 days at an amount that may pay off your loan. If you do decide to short sell make sure your realtor has done numerous short sales and knows how to work with the lenders to make it happen.

[farmdwg]

No pressure. I called my realtor yesterday after talking with Wells Fargo so I thought it was the only thing to do at this point. My realtor has been doing these for the last two years now as our area got hit real bad with the collapse.

I was planning on calling Wells Fargo to tell them that short sell is on the horizion. All they keep on telling me is that it has to be at fair market value. LOL... Only if they knew what that is.

[farmdwg]

Well I got kinda of good news... Wells Fargo Equity (2nd loan) called and approved my mod request. 48 month modification @ 2%, no balloon payment, which basically cut my payment in half.

Now if Wells Fargo Home Mortgage would just work with me....

[afishym]

farmdwg

That is Excellent news!!! Now go after that first!

Keep us posted!

[mzladyjan]

Why is it that the bank will honor a short sale, but not with the original homebuyer? It's not like the market is getting any better -- home values are falling like crazy.

[Murray12]

I would consider calling Hope Now, they can tell you if you qualify for a Making Home Affordable Modification. Sorry if you already said this, but is this a Fannie/Freddie Loan?