I need some help on how to approach Wells Fargo on a Loan Modification.
Here is the unique situation
My now X-Wife and I purchased in Los Angeles in 2004. We had a 1st mortgage and a 2nd mortgage with Wells Fargo. We refinanced in 2005 and consolidated the 1st and 2nd into a new 1st and opened an Equity Line. Currently there is a balance on the Equity Line which WF has closed.
In 2007 my wife and I split with her leaving the Country. My only option at the time was keep the house and pay her off during the divorce. The divorce was finalized in Nov. 2007. The divorce decree did not indicate I had to sell the House only that she quitclaimed the house to me.
In Nov of 2007 I contacted WF Mortgage about removing her from the mortgage. They told me they could do it on the first for about $1,000 but not on the second. I said what is the point then.
In April 2009, I tried to refinance under the Obama plan but was over 50% underwater and WF denied the attempt.
Flash forward to today. I have subsuquently remarried and as commitment to my new wife I put her on title on the house but naturally she is not on the mortgage or equity line notes.
Now I'm looking into first asking Wells Fargo to modify my mortgage but here is the question: They are asking on their online application about how many people in house etc... They will also ask about household income.
Now since my X-wife is on the loan but I have remarried my new wife is not legally responsible for the mortgage. If WF asks about her income what should I do? Will they accept that I say she is not responsible for mortgage etc... Why should she be counted as she is not on mortgage papers?
Recommendations as if a loan mod doesn't work I'm going down the short-sale route as I have lost over 50% of the value of my property and my total property obligations (HOA, WF, and property taxes) equal 58% of my net income