Wanted to put a success story out. We have a Wells Fargo Home Mortgage 1st and Wells Fargo Equity Line 2nd. Although they are both under Wells Fargo Bank, NA. They are completely seperate divisions and to my knowledge do not engage each other.
In early 2009 I had a loss of income of a W-2 job. In addition to the W-2 employment I also has self-employed 1099 income. My wife is W-2 and has been for some time. We own several properties and went from equity position in all of them to behind in all of them on I/O mortgages that were all adjusting. I put in a call to 1st and 2nd. Was asked to submit packages for modification on both. Started this process in November of 2008 by slow paying the 2nd but not non-payment. In April, after 5-6 months of slow pay, stopped paying the 2nd. House at the time was valued at 330K. Our 1st mortgage was 345K so our 175K 2nd was fully unsecured. We looked into a CH 13 BK, but with our income or payback schedule was going to be 5 years, with a 2 year period after that, we didn't wan't to be dealing with it for 7 years. Ch 13 is a great option for someone with high unsecured debts and little to no income. We got the number of the presidential office off the loan safe forum. Turns out when I called them the Wells Fargo Equity Solutions has a simialr phone number
Wells Fargo Bank- Equity Solutions- Executive Office 866-828-9436
I told them it was or intention to do a CH 13 BK, but before we went ahead with that we were looking to see if we could work out an equitable settlement which would be best for us both. He was able to get me in touch with a negotiator who speciilized in settlements. Their number is 515-324-8000. I submitted all paperwork and told them that a modification on the 2nd would not help b/c I was fully unsecured and under water on my 2nd and our only hope was to settle the 2nd and modify the 1st. They did BPO's on our property and found that I was correct in that the 2nd was unsecured (no equity position for 2nd) We intially made an offer of 10% which was 17K. They said they would not settle for less than 80%. After going back and forth for 60days they finally agreed on a 30% settlement. We cashed in some of our investements and other $$ we had and cut them a check for 60K, that fully satisfied the 175K we owed them. We spoke with ourt CPA and b/c of the negative equity positions on our real estate we were able to show we were insolvent at the time of settlement, which means there will be no federal tax consequences for foregivness of debt. It was a LONG HARD ROAD but we got our letter in the mail a few weeks back. It says Settled in Full for less than amount owed. They reported it to the credit bureaus that way but added on a statement they charged off the balance. Last week I was able to get with their credit dispute dept (which they have a direct line to as well) they re-reported it to the credit bureaus as settled in full for less than amount owed.
We are no into our 3rd month of a trial modification on our 1st. Awaiting for them to lock in a more permanent modification.
Overall it was a success but be ready to buckle down for a rocky ride.
If you have any specific questions on what worked for us and what didn't don't hesitate to reach out. We were prepared to go all the way whether it be BK or short sale and it worked out ion our favor. We really wanted to stay in our home but were looking at the whoel thing as a business decision with some emotion involved but business 1st.