Where to start?

[HomeIsWhereTheHeartIs]

Hello everyone! I am new to this site! I came across it by accident while seeking out examples of hardship letters. This site is incredible and I'm thankful for finding it. My sincere compliments to the owners/administrators!

I am seeking advise on several subjects. One of which is where to start if one is having trouble keeping up with their mortgage payments. The second subject is how to write an effective hardship letters. And where does writing a QWR come into play? My story is no different than the many people with unfortunate set of circumstances that have come to this site for help. My story starts in November 2005 when I bought my townhouse for $362,000. Because I didn't have anything to put down for a down payment, I was approved for a 80/20 loan. Looking back, that was the stupidest thing I could of ever done! My first loan was with Wells Fargo for 289,088 and my second was with Option One for 72,272. I'm paying Wells Fargo $2169 per month and Option One $612 per month. This also does not include taxes and insurance. I have tried to refinance my home several times over the last two years, but like many, a Comparative Market Analysis found my home less than its original price. Fortunately, I have been able to make my mortgage payments up to this point, but I am definitely 1 month month away from falling behind.

I called Hope Now and the counselor walked me through a budget in order to see where I can cut back. However, I didn't have many unnecessary expenses. By the end of the session, I found out that I had a monthly deficit of $1052. I am actively seeking a roommate and other means of income, but the real resolution would be some kind of modification of my loan. The Hope Now counselor faxed my information to both Wells Fargo and Option One back on February 15. Option One has contacted me but won't do anything until I get an answer from Wells Fargo. Great! A game of *** and mouse! Wells Fargo has not contacted me at all and the person assigned to my case file (told to me by my Hope Now Counselor) does not have a direct phone number or extension for me to call.

Can someone please advise me on how I should proceed. I'm afraid that I'll make the wrong decision and screw up any chance of getting my loan modified.

Thank you...

Money is nice, but not everything. We only rent it. When we die, someone else gets it. A house is so much more than just a building. It's a location, it’s a lifestyle, and it’s an investment, but best of all, it’s a home...

Thank you for joining and welcome to the forum....

Sorry I changed the font, could not read it, old eyes and tired eyes.....

Yes Option One has their hands tied until the First Comes up with a payment program in Modification to you...having said that the First is with a real jerk of a Servicer/Lender...Wells Fargo (Wells Hell).

What kind of loan do you have with Wells, Fixed or ARM...if ARM what kind of ARM 3/27, 2/28, 3/1, 5/1...I/O....if it is fixed, what is the rate?

When you originated the loan was this A paper, i.e. who was the original lender on the obligation? Was this a full Doc loan with paystubs, W-2's and Bank Statements?

Please let me know.

[HomeIsWhereTheHeartIs]

Thank you Poppy for the quick reply!

I had a problem reading the font too after I submitted it. I won't do that again!

Wells Hell?! Great! It sound like I have a long road ahead. My loan with Wells Fargo is a 1 year ARM at 8.25% that adjust every year on January 1. My loan with Option One is a 30 year fixed at 9.6%.

I'm not quite sure what you are asking with this question, sorry:
who was the original lender on the obligation? Everything was done in person and not through the Internet or other electronic means.

Was this a full Doc loan with paystubs, W-2's and Bank Statements?
If you mean, that I have to submit the documents you listed above as part of the application process, then yes.

Sorry! I obviously don't know a lot of the lingo...

The reason that I asked the original lender on the first is I am trying to determine if it is an agency loan....i.e. FNMA or FHLMC (Wells' Hell is FHLMC for the most part) on the non-exotic ARMS. With the full documentation portion of this post I suspect that you do have an Agency product that is a 1 Yr ARM, then again there were some that were in the exotic portfolios and Wells had their share of portfolio product.

So without further ado, question number 57...what is the present value of your home....if you have 3% equity in relation to the first and the value, you may qualify for an FHA Secure loan....however, if not, then rats. They will allow the second to remain in place, subordinate and exceed the value...the other thing is that the project (town home or condo project) must be on FHA approved lists of projects or FNMA's approved lists of projects (they have reciprocity these days).

The trick with that one is that the second has to be willing to subordinate and I just bet that Option One will be.

Regardless, you are going to have to get into the mode of communicating with Wells directly as well as through HOPE....

Wells Fargo Home Mortgage 877-216-8448
Wells Fargo Financial 800-275-9254

These are few numbers that I have....from HOPE mind you, so what you do when you call in is to ask for the Loan Retention or Loss Mitigation department and get a direct number for them as well, so that you do not have to go though phone hell too.

Wells is touting that they are part of Project HOPE so remind them that they are part of the project, the issue is that if this is an Agency Loan they may have problems with modification as the Agency has to agree to it. FNMA has come out with bulletins that are very proactive in the loss mitigation areas, so they are starting to take a very active role in modifying difficult situations.

Have you had a serious hardship since the loan was originated....if this was FNMA then it should have on a 1 year ARM been qualified on a 2% over start rate at the time of Origination....?????

I am wondering if this is Wells portfolio product actually....

Now if you are upside down it is going to be tough, they want to see at least 200 to 250 a month surplus in the process for modification, borrower's that are upside down in the budget especially that much are having real difficulties as the lender does not see the merit to modifying if there is not resolution to the upside down...

That also will be a problem with the FHA concept of refinance as well as the DTI has to be at least not more than 45%, 41% is preferable.

What progress have you made to the roommate or other financial relief issue to date, as you are going to have to have some substantial relief there with that kind of under water budget....?????