Some of you might remember me... I don't post often, ubt read every day. I'm filing Ch 7, attorney has paperwork, 3 months behind on mortgage, mortgage company put me in forbearance but sent an agreement saying that I would still owe the arrearage of $11,000+ on November 1st. I want to keep the house.
I had decided to sign the forbearance agreement to buy some time, but not make partial payments, instead make full payments. And sell my car to try to raise enough cash (approx. $6000) to catch up on the arrearage by the time the attorney is ready to file.
Also trying to out run a judgement from HFC for $17,000, no court date yet, but filed an appearance. So timing on the bk filing is important - wanted time for the bank to work out the mortgage, but need to file early enough that HFC can't garnish my wages.
I really wanted to keep the house, but hadn't been getting any calls on the car and we were coming to terms with the fact that we were probably just going to have to give up the house as part of the bk. I have been struggling to make the monthly payment even though we are no longer paying credit cards and we were realizing that it was just too much in this economy.
Well, yesterday I go to the mailbox to find a letter from Wells Fargo (my mortgage company) entitled "Loan Modification Approval"!!!
It turns out that they are putting the arrearage at the end of the loan, extending the term from 30 years to 40 years, AND lowering my interest rate by 2 percentage points. This will lower my monthly payment by almost $400 per month!!
I can't even believe that this happened. I never requested a modification. I just sent in all of the paperwork they asked for and explained that I was having a lot of trouble making the payments and that I didn't know how I could possibly pay the $11k on November 1. They had said to just pay the forbearance payments and they would "figure out" what to do in November. I thought the best I could hope for is to put the arrearage at the end of the loan. I have had no significant hardship to make them want to lower my payments, just bad money management. I thought I'd be stuck with the same payments and still not be able to make it, regardless of whether I was current or not.
So, to those who are facing surrender of your home, please don't be afraid to work with the bank. They are getting more desperate every day to keep homeowners in their homes and although your credit has been trashed (mine is) and you can't imagine them wanting to modify anything to help you, because you're too much of a risk or you don't qualify - have faith, because THEY JUST MIGHT DO IT ANYWAY!!
S.
I had decided to sign the forbearance agreement to buy some time, but not make partial payments, instead make full payments. And sell my car to try to raise enough cash (approx. $6000) to catch up on the arrearage by the time the attorney is ready to file.
Also trying to out run a judgement from HFC for $17,000, no court date yet, but filed an appearance. So timing on the bk filing is important - wanted time for the bank to work out the mortgage, but need to file early enough that HFC can't garnish my wages.
I really wanted to keep the house, but hadn't been getting any calls on the car and we were coming to terms with the fact that we were probably just going to have to give up the house as part of the bk. I have been struggling to make the monthly payment even though we are no longer paying credit cards and we were realizing that it was just too much in this economy.
Well, yesterday I go to the mailbox to find a letter from Wells Fargo (my mortgage company) entitled "Loan Modification Approval"!!!
It turns out that they are putting the arrearage at the end of the loan, extending the term from 30 years to 40 years, AND lowering my interest rate by 2 percentage points. This will lower my monthly payment by almost $400 per month!!
I can't even believe that this happened. I never requested a modification. I just sent in all of the paperwork they asked for and explained that I was having a lot of trouble making the payments and that I didn't know how I could possibly pay the $11k on November 1. They had said to just pay the forbearance payments and they would "figure out" what to do in November. I thought the best I could hope for is to put the arrearage at the end of the loan. I have had no significant hardship to make them want to lower my payments, just bad money management. I thought I'd be stuck with the same payments and still not be able to make it, regardless of whether I was current or not.
So, to those who are facing surrender of your home, please don't be afraid to work with the bank. They are getting more desperate every day to keep homeowners in their homes and although your credit has been trashed (mine is) and you can't imagine them wanting to modify anything to help you, because you're too much of a risk or you don't qualify - have faith, because THEY JUST MIGHT DO IT ANYWAY!!
S.
Bankruptcy Wizard
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