ASC Modification Story

[DebtFree]

Newbie (as of today). Current loan with Wells Fargo (serviced by ASC). House appraised for $1,250,000 for a June 2006 refi. Real estate broker told me 5 weeks ago the market value is ~$930,000. Mortgage amount as of today is $975,000. I know an appraisal today would be lower than the $1.250 million in 2006, but I don't know how much. (Any guesses would be entertained.)

Lost my job last October 30, have run through minimal severance and 401K, and am in danger of being delinquent as of 9/15/08. Wife works, but salary net salary covers ~one third of the monthly mortgage.

I called ASC yesterday and was told that they wouldn't talk to me until I was delinquent. I would rather be proactive and head off a delinquency, of course, but they wouldn't budge.

Today I figured what the heck, I would call Wells Fargo and talk to them. There approach was a little different than ASC's. They will talk to me about a "moratorium" of 3 months, after I get my worksheets into them and it is assigned to a "negotiator". The assignment process would take about 10-15 days, so I figure it's possible that I could head off a delinquency if their timeline is accurate.

Question is this: Has anybody else had this experience (going the moratorium route with Wells Fargo), and is it likely to be successful? If the answer is "no", what other advice can anyone give me? Thanks.

[schwefls]

Hi debtfree welcom to our fourm:

I wanted to stop in say hello and assure you, you are not alone. Shortly someone will be reaching out to you to address your questions and provide you with some sound advice/suggestions. In the interim please hang in there and know that we are here for you.

[DebtFree]

Thanks for the attention and support!

[Moe Bedard]

DebtFree,

Welcome to the forum and thank you for joining...........

I am not sure what Wells Fargo is talking about but it sounds like a forbearance agreement which would make your payments delinquent........and Wells Fargo has not been quick about any of the modifications that they are doing............

If you are trying to modify your interest rate because it is getting ready to adjust and you won't be able to afford the new rate then you should try to get the process started with ASC's Loss Mitigation............it sounds like you were speaking with collections and because you were not late they have nothing to collect.........

If you are looking for a principle reduction that is not happening currently.......whether it will or won't in the future is anyone's guess......but for right now it is not.

Hope this helps get your started...........
Please keep us posted on your progress..........

ASC ART Team
1-866-398-7569

Accellerated Fax #
1-866-453-6315

ASC Loss Mitigation
1-866-398-7568

[DebtFree]

Sounded like forbearance to me as well, but he was careful/specific to call it a moratorium for a 3 month period. After that they would negotiate with me a repayment or modification to get me back on track.

I am more interested in a structured forbearance or "moratorium" because I will not be able to meet the monthly payment in September. (My mortgage is an ARM, and it has already re-set; we were not too sub-prime, so it only re-set about $60 higher.) So I am not worried about a re-set, I am worried about being able to pay the regular monthly amount. Thanks.

[Moe Bedard]

Well o.k. then...................

Please keep us posted on the progress you make with Wells Fargo here in your thread..........