What to do about WF Second

[NorCalJumbo]

So after 3 years and narrowly missing foreclosure it seems I might be getting a loan modification on my first mortgage. However, I have a second mortgage with Wells Fargo that I haven't paid in 2 years that I would like to re-negotiate. The loan was sent to a collections attorney, but at the beginning of the year they said it was sent back to WF because I was 'unresponsive' or something like that. I have gotten no correspondence from anyone since that time. The home was supposed to be auctioned off in late March but was postponed. My concern is that I have lost my leverage with WF because I want to keep the home and with the mortgage mod may be able to do so. I don't think I can with the original WF loan, though. Any suggestions? I have looked at "Strategy for settling your second" extensively, but have not found my same situation.

[Evan Bedard]

My concern is that I have lost my leverage with WF because I want to keep the home and with the mortgage mod may be able to do so. I don't think I can with the original WF loan, though. Any suggestions? I have looked at "Strategy for settling your second" extensively, but have not found my same situation.

Hello NorCalJumbo,

Your situation is not much different from others who have not paid their 2nd mortgage for quite some time and have still not gone to foreclosure. I'm assuming your 2nd is very far underwater and that is why they have not attempted to collect on the loan or initiate foreclosure proceedings. Permanent loan modifications on 2nd mortgages are very difficult to achieve and will probably not be much help if you do given the fact you are two years behind on the loan. I would follow the strategy to settle your 2nd as this will more than likely be the best route for you to take at this time. You just need to find out whether WF collection department has the loan or a collection agency and go from there.. They should be very willing to talk to you about settling the account.

[whyargue]

I have looked at "Strategy for settling your second" extensively, but have not found my same situation.

Wells Fargo second with a modified first here. After my first was modified I was contacted by Wells Fargo. If I recall correctly they said anyone given a first modification can automatically get a second modification. Mine was for 1% interest for 15 years amortized for ~26 years (remaining life of 1st). I declined. I'm still not paying. I offered 12% of balance to settle second for serious underwater situation (yes I didn't follow "Strategy for Settling Your Second"), which was declined as not enough. So they can wait.

[Evan Bedard]

Wells Fargo second with a modified first here. After my first was modified I was contacted by Wells Fargo. If I recall correctly they said anyone given a first modification can automatically get a second modification. Mine was for 1% interest for 15 years amortized for ~26 years (remaining life of 1st). I declined. I'm still not paying. I offered 12% of balance to settle second for serious underwater situation (yes I didn't follow "Strategy for Settling Your Second"), which was declined as not enough. So they can wait.

You still are on the right track for following the strategy to settle your 2nd. You have an underwater 2nd mortgage that you have not made payments on because the account is underwater and the 2nd mortgage holder is in no position to pursue foreclosure on your property.. How many months are you behind on the account and what state are you located in?