WellsFargo loan Modification

[Mama mia]

Good afternoon everyone. I wish I found this site earier but I just accepted a loan mod. that I am not happy about. I just accepted it so that I could keep my house but its doesnt look good at all. Here are the details:

Bought our house in 2002 for $146,800, 6.5 fixed FHA 30 yrs

I was a payment paln where I had to pay $1299.03 for 3 months then a balloon payment of the rest about $15,000. Last payment was 11/2007.

Pre-Modification:

Unpaid Prinicipal bal is $139,197.67
Rate 6.5 fixed
Mortg payment without escrow $939.25
Maturity Date:11/2032

Modified:

Unpaid Principal 153,399.09
Rate 6.5
Mortg payment without escrow $1056.22
Maturity date 11/2032

Breakdown of amts due:
Interest (plus del prin if structured finance mod) $11,309.85
Escrow $3735.99
Corp rec/title/ mod fees/atty/fc/bpo/appraisal $1001.00

Borr payment toward arrearages: $1845

Total capitalized amt $14,201.42


Here is my question:
Does anyone know why I have to pay interest twice? when I was current, my mortg payment with escrow was $1188.81 only $178 was applied towards prinicipal, $237 was applied towards escrow, the rest was applied towards interest..which was abt $700.

so I figured if my principle was only about $200 a month and I am behind 12 months, so only $2400 should be applied towards my principle since this will then be applied the new modified interest rate which is the current 6.5%

My mortgage payment is going up to $1297.01 from 1188.81 and has the same pay off date of 11/2032. so basically what they did is spread the whole past due balance to my current loan.

So, what can I do? I didnt figure this out until last nite which is too late since I have signed and mailed the acceptance form.
I am asking myself, how can my principle now be much higher than what i bought the house for?

[Moe Bedard]

Hi Mama mia,

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

If you were behind 12 months it would be the entire amount that you were behind that is being capitalize so that you don't have to pay the entire amount up front to cure the default..........that is what would cause the payment to increase. If you are also unable to afford the amount of the payment with the loan bought current you would need to speak with a HUD counselor and see what other options FHA would have...........you can also try contacting NACA to see if they may be able to help you.........they are a HUD approved counseling agency and also a non profit.........click on the link to see the steps to get started........
https://www.naca.com/refinance/refinanceTenStep.jsp

[Mama mia]

Thanks *** for your response...Do you if I will be able to qualify thru NACA even if I have signed the modification agreement? I signed it on 12/18/08 and my first payment will be due 02/01/09.

Thanks again for your help.

[Mama mia]

We also have a HELOC thru Chase for 35k which is currently on a repayment plan, our last payment on that plan is scheduled for Dec 30th, 08. I am trying to get a fixed rate but no one right now is willing to help since I still have one more payment to finish the repayment plan.
Any idea who to call who can help me?

[Moe Bedard]

With NACA you would need to ask that question...........
1-888-302-6222

You may need to finish your payment plan with Chase before you can see if a modification is able to be done on the second.
Chase 1-800-293-0219