Me and my wife went to Wells Fargo event the other day to try and get a modification for our mortgage. Our mortgage amount we owe is about $370k with a 4.65% fixed interest rate. We have had the house for about 7 years now and never refi'd got another mortgage etc. Wells Fargo is going to try and help us with the Obama "Making Home Affordable" or do an internal modification. It is not 100% at all but they said they will get back to us next week. At the vent Wells Fargo appraised our home at 220k. We were IN SHOCK. We can't believe how much the house value dropped. I know it has happened to many people but we still are pretty disappointed and upset. By the way we are not behind in our payments, we pay pretty much right before the 30 day late mark but it is becoming increasingly difficult especially since my wife lost her job.
My question is even if we can/could make the payments is it worth it for us to continue to do so on mortgage were we owe sooo much more than the value. We are trying to determine the pros/cons of not making these payments anymore. We have pretty decent credit so i know there would be an impact that etc. but we don;t know what the best option would be. Any help/advice would be greatly appreciated. Thanks sooooo much.
What should we do..
Started by
horsegoer
, Jul 18 2012 07:36 PM
3 replies to this topic
#1
Posted 18 July 2012 - 07:36 PM
#2
Posted 19 July 2012 - 08:04 AM
Do you plan on staying in the home long term or moving soon? If you plan on moving, I would try to find something to rent now before your credit gets trashed and then let the house go. I believe you have to wait 3 years from the date of foreclosure before you would be able to purchase again, not to mention the trashing your credit woudl take. However, if you are only working on one income and your wife can't find a job anytime soon, then maybe you have answered the question yourself. It's a personal decision and not an easy one.
Most mortage companies won't go for a mod unless you are behind in payments. We just got approved for a mod, but had to go 90 days late in order to get it. Getting a mod also takes time. For us it took almost a full 7 months from start to finish.
Good luck in what you decide.
Most mortage companies won't go for a mod unless you are behind in payments. We just got approved for a mod, but had to go 90 days late in order to get it. Getting a mod also takes time. For us it took almost a full 7 months from start to finish.
Good luck in what you decide.
#3
Posted 20 July 2012 - 10:11 PM
I would not let your house go on the fact that it's underwater. Pretty much everyone is in thr same boat...home is underwater.
If you need a modification and can prove hardship (loss of income for your wife and you can't make the payments on your income alone) then apply.
If you need a modification and can prove hardship (loss of income for your wife and you can't make the payments on your income alone) then apply.
#4
Posted 24 July 2012 - 06:49 AM
You need to check your state laws, specifically if it is a recourse state or not.
0 user(s) are reading this topic
0 members, 0 guests, 0 anonymous users
