Wells Fargo HAMP offer; suggestions?

[Olypentax]

I just received a "Helping you stay in your home" Trial Period Plan yesterday from Freddie Mac (Owner) & Wells Fargo (Servicer) after waiting for 8 months for something to happen. The quoted 3 monthly payments are pretty low at about 1/2 of my current mortgage payment and if I pay the 2^nd the total will still be lower than local rent prices. I have been searching these forums and have found lots of good information but I still have a few questions.
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• Are there any guarantees that if I complete these 3 payments on time, I will receive a loan MOD?
• Is this payment what my future mortgage payment will be or will it go up?
• Will a loan MOD affect CA Non-Recourse, Section 580b and my ability to walk away debt free or will it change the status to Recourse?
• Is there any possibility of a principal reduction? My home is about $200k underwater. Has anyone had a principal reduction?
• What about the Home Equity (second) which is also 7 months delinquent? What will they want from this arrangement?

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There are no specifics on the possible modification so it looks like this will just buy some time and allow them to get some more cash from me. I have already decided to walk away and thought this overnight delivery was the NOD. I’m unsure about getting into this program and extending the inevitable. If I receive a NOD in the next couple of weeks I still have about 4 more months of free rent. I am in CA and both loans are purchase money.

[Evan Bedard]

Hi olypentex,

Are there any guarantees that if I complete these 3 payments on time, I will receive a loan MOD?

NO there are no guarantees and in fact no one hear is getting approved for a permanent mod after the period is complete. Only maybe a few have actually got a permanent mod...

Is there any possibility of a principal reduction? My home is about $200k underwater. Has anyone had a principal reduction?
What about the Home Equity (second) which is also 7 months delinquent? What will they want from this arrangement?
<O></O>

No lenders are offering pronciple reductions on any loans. I have maybe seen three total in the last two years..

As far as your second you will still need to try and get that modified seperately or offer a settlement amount to get rid of the mortgage..

[Olypentax]

Thanks Evan for your reply. This is the issue that probably troubles me most if by some slim chance I do receive a MOD.
Will a loan MOD affect my status regarding CA Non-Recourse, Section 580b and my ability to walk away debt free or will it change the loan status to Recourse?

[sammyt74dp]

Evan,

You say that no one is getting a permanent mod after the trial period. What is the main reason for Wells Fargo denying everyone after the 3 trial payments have been made? My thoughts is that they are abusing the HAMP guidelines and using the "Trial Period" payments to help cover foreclosure legal fees, which they plan to do anyway. Thoughts? I am getting ready to go back to battle for 2nd try at a modification. But it sounds like I am wasting my time and money.

Thanks,

Sam

[thewigs3]

Originally Posted by Olypentax

I just received a "Helping you stay in your home" Trial Period Plan yesterday from Freddie Mac (Owner) & Wells Fargo (Servicer) after waiting for 8 months for something to happen. The quoted 3 monthly payments are pretty low at about 1/2 of my current mortgage payment and if I pay the 2^nd the total will still be lower than local rent prices. I have been searching these forums and have found lots of good information but I still have a few questions.
<o></o>

• Are there any guarantees that if I complete these 3 payments on time, I will receive a loan MOD?
• Is this payment what my future mortgage payment will be or will it go up?
• Will a loan MOD affect CA Non-Recourse, Section 580b and my ability to walk away debt free or will it change the status to Recourse?
• Is there any possibility of a principal reduction? My home is about $200k underwater. Has anyone had a principal reduction?
• What about the Home Equity (second) which is also 7 months delinquent? What will they want from this arrangement?

<o></o>
There are no specifics on the possible modification so it looks like this will just buy some time and allow them to get some more cash from me. I have already decided to walk away and thought this overnight delivery was the NOD. I’m unsure about getting into this program and extending the inevitable. If I receive a NOD in the next couple of weeks I still have about 4 more months of free rent. I am in CA and both loans are purchase money.

Who do you know there that got you such a good deal? Ours was only lowered $300. I'm unemployed and we are in debt $800 each month and that's just necessity (utility,food,gas etc).

[thewigs3]

I was told today (I have it recorded) that the trial is actually what the mod will be if/when approved. No other figuring will be done during the trial period. That trial payment will be your new payment moving forward.

[Moe Bedard]

Way to record it. Keep on them and hold them accountable.

[justgettingstarted]

Hi Moe,

I have been replying normally on the NACA offer thread and thought I would try this one for help. I have just received a forbearance letter from my lender Wells Fargo offering me a 4 mo. forbearance of half my mortgage I'm assuming. The only figure on the letter is $8595 due in Jan. 2010. Am i to sign this and return it or should I fax Naca a copy and see what they think about it? Has anyone else gotten a letter of terms like this? WF told me on 9/14/09 that I was approved for the HAMP program back on Aug. 20,2009 and told me to send in a hardship letter which I did and then this letter comes in the mail today.