Laid off work and looking what to do with wells fargo mortgage

[playinthegame]

Hello this is my first time posting in your forum. Thank You for the opportunity for us all to hear each others storys and experiences.

Heres my story we are in Ca. and purchased our home in 2006 for $708k 30 year conv. at 5.8% Since then we had a pool built for $65k and took out a second at 8%.So we are in it for $773k.Zillow estimates the value of our home at $445k. In the hole $328k.This has been fine knowing that the economy will turn for the better and we plan on staying in the home.Until 2 weeks ago when I was laid off as a Const. Superintendent making top dollar for the last 13 yrs.

I have been aggressivly looking for work but it is very scace out there I will problably have to settle for a job for half I was making making it impossible to make the payments since I am the sole bread winner in our family.And with that said to job market still is slim in the trades and I don't see getting Anything in the near future.O

ur July payment was late after the 16th and we have elected not to make this payment because it would take our last money saved.1st $3,440 amonth and the 2nd is $530 w/ Key Bank= total of $3970 a month.We have yet to contact Wells Fargo yet since being laid off.About 3 months ago I checked into the Mod. program and found that our loan isn't supported by Fanny or Freddy.

What options do we have here? Any help would be much appreciated.Thank You
<!-- google_ad_section_end -->

[Moe Bedard]

Hello and thanks for joining the community!

I have a lot of friends in similar situations to yours and they have yet to find work. Construction is very tough right now.

I have been aggressively looking for work but it is very scarce out there I will probably have to settle for a job for half I was making making it impossible to make the payments since I am the sole bread winner in our family.And with that said to job market still is slim in the trades and I don't see getting Anything in the near future.O

You are probably spot on here. Work and jobs will be very scarce over the next few years and any rebound in construction will most likely happen in 5 years plus. Unless you get in with the federal government over they next year or 2 when they start working on our nation's infrastructure.

our July payment was late after the 16th and we have elected not to make this payment because it would take our last money saved.1st $3,440 amonth and the 2nd is $530 w/ Key Bank= total of $3970 a month.

That was smart. Hang on to your cash and use it for food and your necessities only. Money is going to be tight and a much needed resource. You will have to make a lot of adjustments in your lifestyle to make your dollars stretch. I suggest you start doing that big time now.

Unfortunately, your options are limited because you don't have any income coming in. In order to get a loan modification, you have to have income coming in. Unemployment, renters or something steady.

You can have up to 9 months plus in your property after you miss your first payment. This is time to plan your life from here on out.

Of course, as you know, the job issue and or income will be #1, once that is tackled, then you can deal with your creditors.

[playinthegame]

Thank You Moe for your quick response.And for putting this great site together.Your support is much appreciated along with the other members.I have heard from other people that keeping all other bills current if posible is the way to go for future rental possibilities.That way when viewed by potential landlords they see the problem with the realestate only.I take this as being both my 1st and 2nd mortgage that I plan on stop paying and focus on putting food on the table for my family and paying the other smaller bills.Good thing we don't have a high credit card debt.Also I was just granted Unemployment for the full $450 a week $1800 amonth barely 15% of what I was making before. But better than nothing.Let me know your view on this. Thank You

[Moe Bedard]

Hey, my pleasure Lot of blood, sweat and tears are in this website and I founded it too when I was hurting, struggling to live daily. Now, I have been blessed by this great community and can make a decent living helping people online while I work from home. Maybe you can think of an idea to work online for yourself?

Actually, renting now with damaged credit is easier than it has ever been. Most property managers now understand this and sometimes a letter of explanation will do the trick or rent from a private party. Many real estate brokers own homes and would love to rent to a good guy with a family that is just down on his luck.

Paying all your bills will help, yes!!!

Your unemployment looks like it will do the job to feed your family and pay a few bills, but not everything. This will be tight in every way and no way you can get a loan mod with that.

If it was me, I would eat, pay my bills on 6-8 week cycles. (basically you are always a bit late, but never in collections, its a fine balance you will get used to) and look HARD for work. I think if you took your energy and just spent 8 hours a day, 5 days a week marketing yourself and maybe learn some new skills, you will find work. Even in this economy.

[playinthegame]

Thank you again for your input and support. What do you think my next move should be if a loan mod. is a waste of time because I wouldn't qualify? Would a short sale be the next step?And if so timing wise when should I start this proceedure?I guess I need to find out what gives you the most time to stay in the house vs. credit dings on a foreclosure.Let me know Thanks again

[Lola8]

Mmm... I think I read a thread the other day in here about people walking away from their house. Actually, that person ended up doing a short sale. Moe is right about paying your other bills, and saving as much as possible.

I wish I could remember the name of that thread...

[Moe Bedard]

Sorry, I was in the pool with the little ones

OK, this is tricky because everyone is going to give you a different opinion. Everyone that is that makes a commission. A Realtor will say short sale, a loan mod firm will say try a loan mod and a bankruptcy attorney will most likely tell you to claim bankruptcy.

I think "timing" is crucial in order to minimize the damage and maximize the cash. As mentioned above, you can have up to 9 months in that home payment free. Short selling now, I feel would be too soon. You can ride a few months and look for work. Heck, what if you work hard and land a killer job at 75% of what you made before. Well, that means you most likely will be able to qualify for a loan mod since you will then have income.

You can start the short sale if needed be 3 or 4 months from now. Just keep on top of this whole process. You should speak with a few attorneys and get a few opinions also.

I think you need to do the Ben Franklin and write all the pluses and negatives about you situation and contemplate the best strategy to survive the next depression.

I wish you the best and please keep us posted on your progress on this thread as much as you like.

[LVsucks]

Originally Posted by Moe Bedard

You can have up to 9 months plus in your property after you miss your first payment.

Are you basing that 9 months on the typical 90 days (before NOD) plus a 6 month forbearance from WF or do you think WF will go 9 months before beginning foreclosure?

I'm in a similar situation but in Nevada

[playinthegame]

Well Moe its been a little more than a month since my last post.And I am still aggressivley trying to pursue employment with no luck yet.Financially I dont see it making sense to fight for a loan Mod being 328K upside down.So I see the next step to consider would be a short sale.Which you said to wait 3-4 months from my last post making it Oct. or Nov. that we start the short sale. At that time we will be 4-5 months behind on our payments.Besides me continuing to look for work, what else should we be doing before the short sale? Do we need to respond to the banks letters?And what happens if when we put the house up for the short sale and it doesn't sell?As far as credit dings how soon after a short sale can you repurchase a home vs. a foreclosure?Any help would be much appreciated to our questions.Thank You

[playinthegame]

Does anyone have any answers to my above post?I am trying to weigh out the options here.Any comments would be much appreciated. Thank You