Profile picture for SaraLee2002

Am i tough out of luck?

We bought our house in june 2008. our conventional loan was for 122,000 (at 5.5% interest) for a 2 bd 1 bth house with a large yard.  we are not behind on our payments and both my husband and I have jobs at the moment- but with a baby times are rough. I wanted to stay home with the baby but due to our debt i could not.our house is appraised by zillow at 77k at the moment. i would like to know if there is anything i can do to lower our payments. id like to save more money to actually expand our house. Our current balance is at 113k that is from 122k in 2008 (we pay $420 Bi-weekly. $840 a month) Wells Fargo is the one who owns it. i tried to find out who really owns it and they "couldnt tell me." My dad keeps telling me to walk from the property and he would help me get another house. i would hate to do that since our credit scores are excellent. anyone have any ideas? Thanks in advance!

  • December 13 2011 - Tucson
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Answers (4)

Profile picture for sunnyview
Forget what Wells says on the phone. Check for yourself before you cross HARP off. Just follow the  Fannie and Freddie links here to their home websites lookup your own loan. If your loan is owned by either, you may qualify for HARP even if you are underwater as long as you fit the other guidelines for HARP2.

If you loan is not owned by Fannie or Freddie, then you can ask Wells for a loan modification, ask for any refinance program that Wells will offer you directly or you can look at other options like short sale or walking away. If you get to that point, make sure and pay for a legal consult to get all options first so you understand the laws in your state and can make the best choice. There are also funds available for "hard hit states" that might help you. You can use the HARP eligibility checker here to see if there are options besides HARP too.
  • December 13 2011
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Profile picture for SaraLee2002
How do i find out who owns my loan.. Wells fargo says Fannie/freddie does not own it but they wont tell me more... is there no way to qualify for Harp with out them owning it?

Also when you ask for a loan modification does it need to have the house appraised? if so.. i don't think i will qualify... we bought the house for 122k now its appraised around the 80k range... 

so frustrating... all i want to do is save more so i could actually make changes to the house... like fix a leaking roof or build another bed/bath...

more ideas would be helpful..thank you again :)
  • December 13 2011
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Dear Sara Lee:

Keeping your credit score in tact is good. If you like the house, consider staying. To help ask for a loan modification to the 4.2 to 4.5% range. This will help with your monthly payments. The bank may change the loan terms also.

A short sale will negatively affect your credit as you say. Wells Fargo will nbe unlikely to approve your short sale if you are still making the payments.

You own the home if you have a mortgage. The bank has a mortgage lien on the house or a bank that they may have assigned the loan to.

Jeff Masich
HomeSmart Realty
Arizona Homes and Land
  • December 13 2011
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Profile picture for sunnyview
First, I would check to see who owns your loan. See if it is owned by Fannie or Freddie and then see if you qualify for HARP 2. That might lower your payment without you having to even pay out of pocket for a refinance.

Rates with Fargo yesterday were 3.875 on their website for a fixed 30 year so maybe lowering your payment would give you the wiggle room you need to comfortably stay. I would look at HARP first, run a mortgage calculator and talk to a local agent about your value before you make bigger decisions.

I was in not distress, didn't need to refi, but was offered a HARP from Fargo with no appraisal, no fees rolled into the loan and no escrow costs. I literally signed the papers, sent them back and got my lower rate 30 days later with no strings.
  • December 13 2011
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