Received default letter, 2nd time

[Patienceisavirtue]

Hi,

My husband has been in and out of work for the past two years working as a contractor, can't find a permanent position with what he was making in his last permanent position so he does his best to find a contract job. I also work full time but I don't make enough to cover all the bills. He has been out of work since December and collecting unemployment while he tries to find a position, last year he was only out of work for a month but this time we are going on three months. Long story short we are on our 2nd modification since 2012 and have fallen behind on the payments for the last year and a half. I have been calling in to Wells Fargo and making payments over the phone. We filed Ch7 Bk back in 2009. I received a default letter to cure the past payments of about $3,000 back in Sept of 2016, I never paid the $3,000 buy the due date but I was never able to keep up and was always behind about 2 to 3 months. Lately we have fallen behind by 4 months and we just received another default letter asking for $7,000 by March 20. I don't have the $7,000 but I could pay maybe half. I don't think it is worth my while to apply for a 3 mod as they very rarely happen and my husband being out of work. I maybe could pay 2 months worth of payments before March 20. Do you think they will go forward with foreclosure if I pay them two months worth of payments, then I will only be 2-3 months behind? Thoughts? Thanks so much!! : )

 

[Erik Sandstrom]

I'm not the best equipped to answer your question as I focus on new home loans but I did notice that your question hasn't been answered and would like to chime in. If you were to make up some of the past due it may not hinder foreclosure proceedings if they have already initiated. If they haven't initiated foreclosure I would think that by bringing the loan to where it's only 60 days behind would be beneficial because they usually don't start the foreclosure process until after that.

The other side to the equation could entail you making the payments and they end up foreclosing anyway or they don't accept payments at all. That would put you in a bad situation when it comes to the amount of reserves you have available.

Again I'm not an expert but I would actually say to apply for another modification, while you are in the process of a modification they can't legally foreclose from my knowledge. That may be able to buy you some time while you save up as much money as possible.

If foreclosure was inevitable, personally I would try and buy as much time as possible without paying them.