My mortgage payments are $2440/month + $4000/year in property taxes. My rate is 5.94 fixed 30 years. We are in year 8 and have never missed a payment. We are currently in a 0% payback plan and pay $1500/month for the two cars and trustee fees. The mortgage is paid outside of the plan. Our income is $150k/year. Basically, I am getting real tired of paying almost $2800/month for our mortgage and would like to have Wells Fargo help us out. Does this seem feasable during our Ch. 13? Thanks.
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We did it and was approved. It took about 7 months to get it done. -
It should be doable - though it will likely mean more of your $ goes to unsecured creditors. If your mortgage goes from $2800/mo to $2000/mo for example, that's an extra $800/mo DMI. On the other hand, you may need to adjust other expenses upward anyhow and it will make you better off in the long run, once your case is done.~Staci
Not an attorney, and never played one on tv. My responses are based on my own experiences & personal opinions.)Comment
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Possible, yes.
1. The creditor will need permission to talk to you. Sometimes all that is needed is a letter from your attorney. Sometimes you will need the trustee to authorize, and in the stringent cases, you may need to lift the automatic stay as to the bank.
2. The modification will also result in a chapter 13 plan modification (amendment). As such, you will need trustee approval and go through the steps to get your chapter 13 plan amended.Comment
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Thanks guys. The good news is we had another child so if by some miracle that Wells Fargo works with us, our Ch. 13 payments should not increase due to our child that was never figured into our dmi when we filed. I just got the lawyer to fax in a paper giving Wellls Fargo permission to deal with us. I just wonder if I should keep current on the payments or become late. Any thoughts on this?Comment
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During those 7 months, were you current on your mortgage? If not how many months were you behind if you don't mind saying. Also did they threaten you with foreclosure during that time? Thanks.Originally posted by kayday View PostComment
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In an active 13, you must be current, no matter what. Otherwise, you have defaulted the plan and they can just foreclose.Comment
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The house has been paid for "outside" the plan as we pay it separately from the trustee payments. The mortgage has never been late and was not "included" in our bankruptcy filing.Comment
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Sorry, your plan does provide for the payment, outside the plan. In any event, if you stop paying, you are in default and the mortgage lender can foreclose.Comment
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Thanks HHM. I went to see my lawyer today and he said being late on the mortgage will not affect my Ch. 13. What I'm basically doing is bluffing. If Wells Fargo gives me the modification, that would be awesome. If they threaten foreclosure, then they will have called my bluff and I will pay back all the missed payments and continue paying the full mortgage. What I was unsure of was the fact that if I am late on the mortgage, would that have any effect on my Ch. 13 payments or would the Trustee be angry. My lawyer said that being late on the mortgage should not affect the trustee at all.Comment
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That is both true, and false. It is true, that defaulting on your mortgage won't affect your chapter 13 (meaning it will keep going, and if the trustee is aggressive, will request an amendment to reflect your new housing expense). However, if your goal is to keep the house, the it is false. As soon as you default, the lender can move for a motion to lift stay. Also, even if you can CURE the default, the bank, at that point, is NOT required to accept. If you default, you have a "high" risk of losing your home.he said being late on the mortgage will not affect my Ch. 13Last edited by HHM; 07-12-2012, 06:48 AM.Comment
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Ok, this is good to know. However, what incentive would there be for Wells Fargo to not accept my late payments and cure the default if they call my bluff? My house is over $120k underwater so I can't imagine that they would want it back, especially considering I would pay back all the missed payments. Thanks again for all your advice, I truly appreciate it HHM.Originally posted by HHM View PostComment
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IMO - you're playing with fire. You want to play the "bluff" game in hopes that you will force WF into modding your mortgage, but have you considered that you can still seek a modification without becoming late? Have you run the numbers to see what WF's debt-to-income ratio is for them to mod? Usually in-house mods work along the same guidelines as HAMP but can vary; i've seen anywhere from 28-31% of your GROSS income.
As HHM stated, by not paying and then playing catch-up at the last minute - you have to be willing to play russian roulette all the way around with your house and Ch. 13 plan.
Why send up a red flag? If you dont want to pay the house, then amend your plan to let it go back to the lender.Comment
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That is a false assumption. You can't think of Wells Fargo's interest on a deal by deal basis. They are managing a portfolio of thousands of loans, as the loan servicer, they make MORE money foreclosing than they do saving the borrower (you). So long as the portfolio is within its bounds for acceptable losses, Wells Fargo WANTS to foreclose.what incentive would there be for Wells Fargo to not accept my late payments and cure the default if they call my bluff
Wells Fargo is just your loan servicer at this point, the true "owner" of the note is some state pension or hedge fund. Wells Fargo doesn't care about the loss, that is the investors risk (and the investors have insurance and credit default swaps)...so long as the portfolio, as a whole, is within its loss bounds, Wells Fargo would rather foreclose to clear off high risk loans and make more money doing so.Last edited by HHM; 07-12-2012, 09:01 AM.Comment
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Thanks for the clarification. This is why I love this message board! I did some rough calculations and I'm at around a 22% ratio. I don't think I'd qualify with my ratio being low
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