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!