Results of Wells Fargo Foreclosure Mediation

[cosmojinx]

So I wanted to post this for anyone looking for more info on mediation results, and also to get some input. It has been 11 months since we made a payment to WF. Our house is worth $150k and we owe $234 (we live in WA). We decided to try a mediation, and that mediation occured yesterday morning. WF offered a loan mod, to bring the interest rate from 6% to 4.75%, and extend the loan to 30 years again. We only purchased the house 4 years ago, so their offer would only decrease the payment by a couple hundred dollars, which we still would not afford. Now they want us to pursue a short sale.

A short sale would be a pain in the a@#, since keeping the house clean with two little ones and having people come in the house all the time would be virtually impossible. The only positive is that I hear it is better when you want to try and buy again. Now I don't know this for sure, but I have been told if you sell, you can buy again within a couple years. But if the house forecloses, you must wait about 7 years. Does anyone know if this is true or not?

Further, we assumed by now we would have to be moving out, so we have a rental house lined up for an really good price, and it is a really nice house. The thing is, the owners want us to move in July 1. If we don't move in then, there is no way we will find a place as nice as this one, and as affordable. However, the WF rep told me yesterday that we still have about 6 months left in the house if we want to stay there. So should we stay and save $$, or move out and rent the house that's a great deal? I would appreciate your thoughts and advice! Thank you!

[Jeffrey L. Shurtliff]

So I wanted to post this for anyone looking for more info on mediation results, and also to get some input. It has been 11 months since we made a payment to WF. Our house is worth $150k and we owe $234 (we live in WA). We decided to try a mediation, and that mediation occured yesterday morning. WF offered a loan mod, to bring the interest rate from 6% to 4.75%, and extend the loan to 30 years again. We only purchased the house 4 years ago, so their offer would only decrease the payment by a couple hundred dollars, which we still would not afford. Now they want us to pursue a short sale.

A short sale would be a pain in the a@#, since keeping the house clean with two little ones and having people come in the house all the time would be virtually impossible. The only positive is that I hear it is better when you want to try and buy again. Now I don't know this for sure, but I have been told if you sell, you can buy again within a couple years. But if the house forecloses, you must wait about 7 years. Does anyone know if this is true or not?

Further, we assumed by now we would have to be moving out, so we have a rental house lined up for an really good price, and it is a really nice house. The thing is, the owners want us to move in July 1. If we don't move in then, there is no way we will find a place as nice as this one, and as affordable. However, the WF rep told me yesterday that we still have about 6 months left in the house if we want to stay there. So should we stay and save $$, or move out and rent the house that's a great deal? I would appreciate your thoughts and advice! Thank you!

When you are being foreclosed on it is hard to stay in the home. If you have a chance to rent a house you want then take it and screw Wells Fraudster Bank.

[BustedBrokeBeaten]

Hi cosmojinx! Fellow Washingtonian here. We stopped paying in May 2011 and still have no NOI yet, so I think the bank telling you you have about 6 months is true..especially the "about" part. Could be a lot longer than that frankly. I'm not sure why some foreclosures go quicker than others, but I've heard that if your house is in a nice neighborhood it might go quicker. Ours isn't in a bad neighborhood, just an old house with lots of needed repairs that we couldn't afford to do and pay the mortgage (ARM on first that flexed up and down, 10.25% interest on the 2nd). Our servicer now is BOA.

We moved out immediately upon stopping paying our mortgage for personal reasons, and honestly I was afraid we'd never find a rental with the bad credit. I don't regret that decision, but I do regret not renting the house out. I was more worried about having extra expenses by having a renter who might need us to fix things, so we chose to leave it vacant. We pay the electricity bill (very low since we only have lights on for nighttime) and the sewer bill which was lowered because we don't live there. The bank has paid the taxes and renewed the insurance policy. We have neighbors helping watch over it for us, and we go there every week to mow the lawn and pick up any mail that was delivered. The decision is yours, but if the only thing you will have on your credit when the time comes to move to a rental is the foreclosure, and as long as you have a couple months' worth of rent to offer, you will probably not have any problem getting into a rental. The decision to stay and save or go and rent and save the rent money is yours. I assume if you collect rent money you have to report that as income to the IRS. That's what makes sense to me, but I'm just a layman here on LS learning as much as I can every day.

I wish you the best with whatever decision you make. ~ BBB