Preparing to walk on 1st and 2nd, both with WF - general questions and auto-pay question

[Someonestolemyusername]

State: Maryland
Home Value: $325k, HARP refi, no money taken out
1st: about $325k, WF service/Fannie May owned
2nd: $90k HELOC, via Wells Fargo

I'm preparing to walk from my house in Maryland due to divorce. I was going to stay with it, but my cash flow has always been on the edge and a split will make the situation untenable. I cannot get a rollup HARP because my refi on the 1st was a HARP but Wells Fargo neglected to tell me that I could roll the second into the first. Hell, they didn't even tell me it was a HARP refi at all.

My plan is to move out with some assistance from relatives and leave her use of the house for as long as the process takes. It's a bit of an odd situation - because her credit was SO trashed due to previous issues, the mortgages are in my name only as is the title to the house. But since MD is a marital property state, she "owns" half of it. But because we are underwater she owns half the debt, too - for me to "buy out" her half she would have to pay ME her part of the loans. So while walking is the best alternative, I need to do the process myself and insulate/isolate her.

I've been reading the site as best I can and the volume of info, while amazing, is almost too much to sort through. But my questions are as follows:

1) Can someone shoot me a link to a newbies guide to this? I've seen a number of references to C&D letters, Google Voice accounts, etc. but am having trouble finding specific steps. As stated above I need to keep her separate from the foreclosure notices, harassing phone calls, etc. There are references to using Google voice to block phone numbers from banks and collection agencies, but I haven't found the "how-to".

2) My HELOC is set up to pull automatically from my checking account. I normally would not have done this, except I get a 1/4 point discount on the interest. What is the best way to stop them pulling from my account? Simply closing the account is not really an option - there's too many other things tied to it.

3) How will it work with WF servicing one account and owning the HELOC? The 2nd note is completely uncapitalized, there's no equity behind it.

I appreciate any pointers.

Thanks
R2.0 (someonestolemyusername)

[JustSharon]

Hi Someone:

Re: #2. Automatic payments. I'm assuming that your bank is Wells Fargo? Your branch should be able to help undo the automatic payments. I know that closing the account might be a hassle, but you really should consider it. I am not a lawyer, but as I understand it, WF may have the right of set-off. That means that if they can't get the money out of your account by the usual method, they may be able to take it out of other accounts that you have in that bank. I'm the cautious (read paranoid) type. I would immediately open an account in another bank and start transferring money, automatic deposits, etc. to the new bank. Sometimes this takes a while to get everything set up, so start now.

Good luck on your walk.

[JustSharon]

PS. After you've got everything transferred to the new bank, close the accounts in the old bank. You don't want them running up NSF/overdraw fees every time they try to get a payment out of your account.

[dravrah1]

Having gone through this already. (Foreclosure with WF 1st and 2nd) I might be able to help you a little bit.
1) goto http://www.google.com/voice/ and get a phone number (you will have to sign up for a Google account if you haven't already)
Change your phone number for both your 1st and 2nd mortgage both online and by calling wells fargo customer service. Make sure to remove any numbers you don't want called. You can have the number forwarded to a phone of your choice or just have it go straight to voice-mail all the time. Note you will need to have a forwarding number to set up Google voice, but you disable it immediately after setup.

2) Use this form to cancel your payment https://www.wellsfargo.com/pdf/centers/ACHWebformHE.pdf
Also, as recommended by JustSharon if you use a Wells fargo, checking account you really should close it because Wells could take money out of it against your wishes for both the 1st and the 2nd.

3) The first will foreclose leaving the 2nd as a Sold out Junior (see Sold Out Junior Loans for more info)

[No_Kidding]

I would suggest closing wf checking is first order of business. Open a checking acct with some other bank, and transfer your affairs. Meanwhile, call heloc and tell them to remove auto pay. They may have you print, fill and fax a form to them.

Google voice is great suggestion. If you have decided not to play hampster game, then it is good idea to send both loans cease and desist letters and have piece of mind.

[Someonestolemyusername]

Sorry for the late reply.

Actually I do NOT have a WF checking account - those accounts are with another other evil gigantic bank.

The PDF form is just what I need - the website only says "Call Us" but I want to have as little contact as possible.

I'm also going to contact the bank that DOES hold the account and give them written instructions cancelling WF access to that account.

I just changed the phone number on line, but it didn't give me a choice for different accounts; I'll check back.

Not sure about Hampster yet - pending divorce makes that fuzzy. Can C&D be sent preemptively? I think they actually need to start harassment before I can tell them to stop doing it.

[Someonestolemyusername]

Long time no update, but nothing really happened until last week.

Last payment: April 2012
Numerous notices of intent to file a lien, including 1 from Samuel White, who does Fannie Mae's foreclosures.
No contact from me except for going to the Fannie Mae website and requesting information. This led to WF assigning me a series of people to "assist" me, a modification to be offerred, and then withdrawn as I have not responded to any correspondence.

That was in December. This week I received a Release of Lien from Wells Fargo - they are forgiving the second note. No conditions. I did not request it. I also received some "Help with Foreclosure" mailings from them, but still have not received any notice of lien or anything else since December. I'm thinking that WF basically said "Screw it" and took the write off, which is odd because Maryland is a recourse state and I would have expected at least a settlement offer. I've seen some others who have also gotten their second note forgiven "out of the blue"; any more info on this?