I am new to this site and forum. I was self employed but both businesses went belly up so we got out in 2009. Needless to say we couldn't afford our mortgage. My husband and I have been trying to get a loan mod for a $1.7M mortgage for 18 months now. We were granted a forebarance in 2009, (we were up to date with mortgage at that time) and then after three months, they demanded us to pay all of our forebared amount and interest in the amount of $30K. THis was not possible at the time so, we decided to get a loan mod but we were told we must be behind on payments so we stopped paying. (our lender is WAchovia/Wells fargo). WElls fargo tried to foreclose on us in 2009 so we hired two organizations to help us, the first was unsuccessful, so then we hired an outfit in LA to replace the first one called Home Law Credit Center. They have attys so they claim they can stop foreclosure if they need to...so we hired them and they have been representing us now since early January. Just recently we found out they dropped the ball (didn't submit our papers and didn't respond to bank requests) and we just learned we had a sale date in five days - which is today. We didn't have any choice so we filed bankruptcy, Chap 7, to get a stay. We didn't qualify for the 13 and 11 is too expensive and difficult to get. We just heard that we got a stay from the court so our property should be pulled off the auction list today. My husband and I have decided we will represent ourselves since we have relied on so called professionals to do it for us for 18 months and they have failed miserably.
I am terrified. We love our home...it is upside down now - our orig loan is $1.7 but now with arrearage and fees it is at $2M. But it is different. It is registered historical home in a very affluent city but was dilapidated when purchased it 12 years ago. It is still not completely restored, electrical, foundation and plumbing is still not finished. We cannot walk away from it...we put so much hard work and sweat and even if we are upside down we want to keep it. It is protected by our City, meaning it cannot be demolished if it is sold so a very limited market for it.
My concern is that Wells Fargo will not negotiate with us because we file chap 7. Is this true? We have some bargaining leverage...we can pay some of the arrearage now from my husband's retirement but we still need for the bank to lower interest rate for us to at least 3% (we are at 7% with a pick a loan payment) so we can afford it, and we don't even mind doing a 40yr, etc. What has been the experience with internal mods of people with Wells Fargo in California? ANyone similar to us out there been successful? Please share information withme...Cat, have you heard of anyone being successful that was in our similar situation? Thanks everyone for your support.