Should i stay or should i go

[maxsigns]

Having a tough time decieding which direction to go here. A few facts…used to make about 80k a year when I owned my own business of 7 years, but had to shut it down in late 07. Filed BK7 in Jan 08 and was discharged in May of 08, house was included. Continued to make my mortgage payments like normal, until late 08 when I lost my job. Applied for mod at that time….Nov 08. I was 2 months behind and have been talking with lender the whole time (wells fargo). Last payment I made was back in Jan 09, and since then, lost my job again in March. I’ve been faxing in unemployment details, and everything they requested. I gotten two letter from wells, giving me 90 day each to see what happens. In July I landed a good job, but no where near what I’m used to making. I call in every two weeks to see what is going on. All the time, I’ve been told not to make any payments. I finally got a letter yesterday that said they are reviewing everything, and should have an answer or solution in the next 45-60 days. It says, “What you need to do nowâ€â€¦..keep us informed of any changes, and continue to make your mortgage payments. I also got a call yesterday, so see if I got my letter. I did ask them about now making payments as the letter states, and told her I have always been told not to. She put me on hold to talk to a super and came back and said yes, you need to start making your payments. My payment is $1170.00, and my take home is $1211.00 every two weeks. Making this type of payment is stretching it, as I’m a single. My dilemma is this……do I make a payment and hope there is sometype of workout, do I not make a payment and see what type of workout. And if there is a workout, do I want to take it? I mean, I’m off the hook for the house now, and scared to sign anything to get in debt again and ruin what rebuilding I have done since my discharge. I owe more than the house is worth, I owe 124k, and house in my neighborhood are selling in the 90’s. I recently got a statement from Wells, showing my balance of $124k and 10k in past due payments. Would they add the 10k to the 124k……any ideas on what I should do.

[researchnerd]

Wells Fargo is not famous for being helpful or truthful - try calling back and talking to a different person, they may give you a completely different answer.

 

Since the house is worth less than you owe on it, you might consider walking away. If your house was included in the BK, would you be safe from getting hit with a deficiency judgment for the negative equity? 50% of your take-home is a lot to pay for housing. Can you easily find other housing you can afford?

 

I'm sorry that you're going through this. We've been trying to decide the same thing - keep the house or let it go. It's a tough call.

[maxsigns]

Thanks, yeah it's kinda a tuff call, but i'm kinda looking at it like this. I got a fresh start after my bk, which the house was also included. When i had a good paying job, i was never late and had acomfortable house payment. Now, i would struggle deeply to make that payment. I owe more than it's worth, it would take a few years to recover the value it's lost, not to mention, if anymore is added to the principle. According to the VA, i can buy another one in 1.5 more years.......3 years after my bk has dismissed. So, if they do not reduce the principal, and reduce the payment to something i can afford, then yes, i am walking away............

[sirrowan]

Having a tough time decieding which direction to go here. A few facts…used to make about 80k a year when I owned my own business of 7 years, but had to shut it down in late 07. Filed BK7 in Jan 08 and was discharged in May of 08, house was included. Continued to make my mortgage payments like normal, until late 08 when I lost my job. Applied for mod at that time….Nov 08. I was 2 months behind and have been talking with lender the whole time (wells fargo). Last payment I made was back in Jan 09, and since then, lost my job again in March. I’ve been faxing in unemployment details, and everything they requested. I gotten two letter from wells, giving me 90 day each to see what happens. In July I landed a good job, but no where near what I’m used to making. I call in every two weeks to see what is going on. All the time, I’ve been told not to make any payments. I finally got a letter yesterday that said they are reviewing everything, and should have an answer or solution in the next 45-60 days. It says, “What you need to do nowâ€â€¦..keep us informed of any changes, and continue to make your mortgage payments. I also got a call yesterday, so see if I got my letter. I did ask them about now making payments as the letter states, and told her I have always been told not to. She put me on hold to talk to a super and came back and said yes, you need to start making your payments. My payment is $1170.00, and my take home is $1211.00 every two weeks. Making this type of payment is stretching it, as I’m a single. My dilemma is this……do I make a payment and hope there is sometype of workout, do I not make a payment and see what type of workout. And if there is a workout, do I want to take it? I mean, I’m off the hook for the house now, and scared to sign anything to get in debt again and ruin what rebuilding I have done since my discharge. I owe more than the house is worth, I owe 124k, and house in my neighborhood are selling in the 90’s. I recently got a statement from Wells, showing my balance of $124k and 10k in past due payments. Would they add the 10k to the 124k……any ideas on what I should do.

 

What state are you in? If a judicial state, did they ever start foreclosure proceedings, as in you received a Complaint for Foreclosure filed with the courts? If so, did they claim to be the holder of both the Note and the Mortgae or Security Deed of Trust?

[maxsigns]

Hi Sirrowan,

What does mean, is it something i should be looking out for? I have never received anything but statements, and the letter saying they are working on my modification. Nothing ever that ever said they were going to foreclose though.........i know there is a backlog and all, but i can't believe the time that has gone by.

I wonder if it has anything to do, that this was a VA loan, that was discharged through BK7. Did it being discharged and because it was a VA loan pay them goverment dollars when it discharged?