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Answers (12)
- Roger Jenisch, "Roger Jenisch"
- Contributions:4
My experience is Wells Fargo is the worst bank to deal with on Short Sales.... I had a customer we tried to modify their loan and after six months and sending the same information three times they rejected the modification.... The home went into forclosure....We proceeded forward with a short sale and Wells would have ended up at about 65% after months the Wells Fargo employee fabicated an issue and deal fell a part... No management at Wells Fargo would return phone calls or e-mails the person working the file is the start and stopping point...
Now the house has been forclosed on and sits vacant in the Chicago area, Wells Fargo will end up at about 40% of what is owed....
Now the house has been forclosed on and sits vacant in the Chicago area, Wells Fargo will end up at about 40% of what is owed....
- Lisa Lucky, "Lisa Lucky"
- Contributions:976
If you don't need to sell your home then don't. If you need to sell your home we still need more information.
- Carol Kempton, "Realstar"
- Contributions:40
Try contacting one of the TV stations help person. They have lots of contacts and lenders to assist.
- John Conklin, "203K Alternative"
- Contributions:130
You may want to consider short selling your home. To my Knowledge Wells Fargo is not doing any principle reductions. A lot of loan modifications are only prolonging the inevitable and in some cases are putting people in a worse position than before. If you decide that short sale is the best option and you currently do not have a FHA loan and your current on your mortgage when you short sale your home you can potential qualify for a new FHA loan. But if you are late on your mortgage and short sale you will have to wait about three years before you are eligible for a new home mortgage. Jeff has given you some solid advice I would start there and definitely consult with an attorney. There are a lot more variables that are unknown so if you would like to discuss your options in further detail feel free to contact me. What ever the reason for you current situation or hardship try not to stress to much over it, you can work through this one way or the other and get back on track. Best of Luck.
- Mike Bjork, "MortgagePlannerMike"
- Contributions:346
Your question is a bit too vague and need to be more specific for anybody here to better assist you with your question. What kind of loan do you have? What is your current balance and estimated home value? Are you experiencing any "hardship"? What exactly are you looking to accomplish? One place to view for some assistance is here at http://makinghomesaffordable.gov. If you have a Fannie Mae or Freddie Mac, then you may be able to refinance (up to 125% of your home value). If you have an FHA loan, then you can possibly do an FHA Streamline, which doesn't require an Appraisal (so the "underwater" part doesn't matter because they don't require current value). Otherwise, the only other options are to stick with what you currently have; loan modification; or short sell your home (you could go to foreclosure, but shortsale will be better alternative).
- Tracy Saunders, "tahoefineliving"
- Contributions:63
Your question needs much more information to be answered correctly. A Real Estate Agent who has successfuly closed short sales with Well Fargo would be the way to go as long as you have a hardship which makes paying your mortgage impossible and as long as you are wanting to sell your home. Make sure you ask your Realtor if he/she has represented and successfuly closed a short sale (hopefully more than one), while representing the Seller not the Buyer.
If you want to remain in your home I would look at Loan Remodification programs, however I have not seen any reduction in principal rates. I would also talk to a good lender to see if there are any other options out there such as refinancing if your credit is still good.
Just being upside down on your Mortgage is not an issue unless you need to sell because of some extenuating circumstance.
Good Luck
If you want to remain in your home I would look at Loan Remodification programs, however I have not seen any reduction in principal rates. I would also talk to a good lender to see if there are any other options out there such as refinancing if your credit is still good.
Just being upside down on your Mortgage is not an issue unless you need to sell because of some extenuating circumstance.
Good Luck
- Steve Hansen, "Smart One"
- Contributions:43
[Deleted for self promotion]
- Jeff Masich, "Arizona Homes Land"
- Contributions:508
Dear Toodoggies:
The Arizona Department of Real Estate has a publication all options available to a homeowner in your situation. It covers short sales, deed in lieu of foreclosure, foreclosure, loan modifications and other options. See the Short Sale Advisory from ADRE or ask a Realtor. Also, see the Hope Now website from HUD for more options and the opportunity to get a free counselor.
Arizona is a non-deficiency state that means in normal situations, lender can not pursue the borrower on a deficiency on a short sale or a foreclosure. Ask your attorney and/or accountant if this applies to your loan.
Let me know if you have any questions.
Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart Realty
Scottsdale
The Arizona Department of Real Estate has a publication all options available to a homeowner in your situation. It covers short sales, deed in lieu of foreclosure, foreclosure, loan modifications and other options. See the Short Sale Advisory from ADRE or ask a Realtor. Also, see the Hope Now website from HUD for more options and the opportunity to get a free counselor.
Arizona is a non-deficiency state that means in normal situations, lender can not pursue the borrower on a deficiency on a short sale or a foreclosure. Ask your attorney and/or accountant if this applies to your loan.
Let me know if you have any questions.
Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart Realty
Scottsdale
- Randy Hooker, "GoingForIt"
- Contributions:395
First of all, welcome to the crowd of millions of homeowners in the U.S. with the very same problem.
I have to go with wetdawgs on this one. What exactly do you your lender to do? You signed a note and deed of trust to secure that loan with them. You might want to be thankful that you didn't make that same deal with a loan shark - you know, the one with Guido the enforcer on their payroll? ;-)
I would highly recommend consulting first with an attorney, then with a tax consultant, then with a local Fort Mohave real estate agent who is experienced in short sales. After that, you should be well enough informed to make the decision that's best for you and your circumstances. Whatever you do, do NOT take the advice of total strangers on a public forum like this.
All the best!
I have to go with wetdawgs on this one. What exactly do you your lender to do? You signed a note and deed of trust to secure that loan with them. You might want to be thankful that you didn't make that same deal with a loan shark - you know, the one with Guido the enforcer on their payroll? ;-)
I would highly recommend consulting first with an attorney, then with a tax consultant, then with a local Fort Mohave real estate agent who is experienced in short sales. After that, you should be well enough informed to make the decision that's best for you and your circumstances. Whatever you do, do NOT take the advice of total strangers on a public forum like this.
All the best!
- wetdawgs
- Contributions:26851
What do you wish your lender to do? Principal reduction is almost impossible.
Are you having problems paying your mortgage due to hardship? Have you considered selling?
Are you having problems paying your mortgage due to hardship? Have you considered selling?
- Chris Milker, "CMG Financial"
- Contributions:255
Of all the changes you might make to live more cheaply, the most fundamental is finding a cheaper place to live. Sadly, it's an option that's largely closed off to people who are underwater on their mortgages. Unless you have cash to cover the difference between what the house will sell for and what you owe, you're pretty much stuck. Here are options for people in that situation.
Except for option number one, you'll definitely want to get legal advice well in advance of actually doing any of these. Situations differ and the rules are different in different states. In particular, the option to just "walk away" from a mortgage is not available in every state! There are tax consequences to doing that, and to several of the other possibilities. A consultation with a lawyer could save you tens of thousands of dollars.
With that proviso, here are the options I could come up with:
1) Suck it up.
If your house still serves as shelter and you can still afford it, there's no particular reason that you can't just go on living in it, pretty much without regard to its value versus what you owe on the mortgage.
This may be the most expensive option: You can't take advantage of the cost savings of moving to a cheaper place, plus you're putting significant amounts of capital into an investment that might never give you a good return. Still, as long as you can make the payments, this is probably the default option, and it's not necessarily a bad one. Eventually--no matter what happens to the real estate market--you'll be above water on the mortgage. (In fact, eventually you'll pay off the mortgage and own the house free and clear.)
2) Rent it out.
If you can rent the house for enough to cover the expenses of ownership, then you can move into a cheaper place and live there. In fact, even if the rent doesn't quite cover the costs, you can still come out ahead, if you can find a place to live that's enough cheaper (and reliable tenants).
Less drastic than that, you could rent out a room. That could make staying in the house as economical as moving someplace cheaper. In fact, there's no need to stop at renting out just one room--if you have a big house, you could potentially rent out two or three. At the far extreme, you could move into the basement and then rent out the whole rest of the house to another family. Not what you had in mind when you bought it, but perhaps better than losing the place to foreclosure.
3) Short sale.
This is where you get the bank's permission to sell the house for less than the balance due on the mortgage. Sometimes the bank will settle for the sale price and wipe out the debt. Other times they still expect you to pay part or even all of the difference--the balance due is just converted into an unsecured loan. Even in the latter case, you at least owe a lot less money. (Of course, you also have no place to live.)
This is one case where you really have to check with a lawyer. If the bank forgives any of the loan, the IRS may treat that amount as taxable income.
4) Renegotiate the mortgage.
This covers a lot of ground. If your lender agrees, pretty much all the terms of your mortgage are negotiable--the interest rate, the number of payments, even the balance due.
- Jerry Cecil, "Jerry Cecil PLLC"
- Contributions:53
I'm assuming that you are in trouble on your loan and that you are trying to sell.
You should consider a short sale. You lender ends up paying the Realtor's commision to sell your home. Wells Fargo will usually agree to a short sale if your Realtor is short sale trained and the price is right. All Realtors can handle short sales but not all Realtors are trained to handle them. Find a short sale Realtor that has an SFR or CDPE certification or other short sale certification. List your home and get moving on selling it. Good luck and call me if you have questions. I am a short sale specialist in Prescott.
You should consider a short sale. You lender ends up paying the Realtor's commision to sell your home. Wells Fargo will usually agree to a short sale if your Realtor is short sale trained and the price is right. All Realtors can handle short sales but not all Realtors are trained to handle them. Find a short sale Realtor that has an SFR or CDPE certification or other short sale certification. List your home and get moving on selling it. Good luck and call me if you have questions. I am a short sale specialist in Prescott.
What can I do when I am 150 K "underwater" on my loan and Wells Fargo won't do anything ?
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