Wells Fargo

[2manybills]

We just filed on 7/3/09. We have a HELOC with Wells that is auto payment so we needed to keep checking account open. I left $10.25 in the bank on the date that we filed. Wells must have instant access to all BK filings because while I can see my checking account on line, there is no access to my HELOC. We are planning to keep our house but are 100K upside down with the HELOC.

Has anyone here had any experience with this? Do I still deposit into the checking for the payment or do I make a payment directly to Wells for the HELOC on the date it is due?

[aces67]

I know I can't get online access to any of my bills. My creditors said they can't restore online access until AFTER my discharge.

[2manybills]

So far Wells is it. I was able to see Citi and BofA. Closed my BofA checking weeks ago.

[OhioFiler]

Why are you planning to keep real estate you are $100,000 upside down on the mortgages?

[optimistic1]

Isnt that the 10 million dollar question, mostly everyone I know is upside down on their mortgage.

[OhioFiler]

Isnt that the 10 million dollar question, mostly everyone I know is upside down on their mortgage.

Upside down is one thing but $100,000!? That doesn't seem like a fresh start to me.

[2manybills]

In So. Cal. that is about the minimum folks are upside down it seems. We are not going to reaffirm the HELOC. We are in good shape on the first and will not reaffirm that either. But the truth is, this is our home. We live 5 miles from Laguna Beach, so eventually we will come back up again. We couldn't rent for much less than what our mortgage payment is especially considering the tax write-off.

[OhioFiler]

In So. Cal. that is about the minimum folks are upside down it seems. We are not going to reaffirm the HELOC. We are in good shape on the first and will not reaffirm that either. But the truth is, this is our home. We live 5 miles from Laguna Beach, so eventually we will come back up again. We couldn't rent for much less than what our mortgage payment is especially considering the tax write-off.

You could walk away from this house and buy an exact replica in the same area for at least $100,000(probably more like $150,000) less than you owe on it though.

[optimistic1]

It's a conundrum for sure.

100,000 is about what mine is underwater, Arizona Nevada and Cali are the worst markets to own a home. My credit is shot now, so my only option is renting, getting a discharge of debts through my 13, 3 to 5 years later. Then wait another 2 years from discharge to even qualify for a new loan, put money down, etc. I choose to just tough it out and hope and pray that the value will return, if it doesnt after 10 years, I will just do a short sale or deed in lieu. I dont want to rent, especially a house, my friends had to move three times in 1 year because the rental they had was foreclosed upon while they lived in it, and apartments just suck. Especially if you have cats and dogs like we do.

[OhioFiler]

It's a conundrum for sure.

100,000 is about what mine is underwater, Arizona Nevada and Cali are the worst markets to own a home. My credit is shot now, so my only option is renting, getting a discharge of debts through my 13, 3 to 5 years later. Then wait another 2 years from discharge to even qualify for a new loan, put money down, etc. I choose to just tough it out and hope and pray that the value will return, if it doesnt after 10 years, I will just do a short sale or deed in lieu. I dont want to rent, especially a house, my friends had to move three times in 1 year because the rental they had was foreclosed upon while they lived in it, and apartments just suck. Especially if you have cats and dogs like we do.

You would have other options but I think a CH7 filer will have even more if they walk from a house today. Rent to own. lease options, etc. There are so many houses sitting vacant that I believe the potential buyer has lots of leverage working with the seller. Not all sellers need cash. Some would be happy to carry the mortgage and you wouldn't need to use a bank.

[optimistic1]

Good point, it would take some time to do so, but I do see your point, there are sellers out there that "tote the note". I for one really dont want to keep my house, it seems like such a bad investment choice, but I have lots going on right now, so I cant take on moving and such. In my state, the lender cant hold me liable for the deficiency in my mortgage if I am foreclosed upon or do a short sale, so there is no real rush for me to do anything. Its too bad I couldnt cram down my mortgage in my 13, the unsecureds would get paid everything. That bill failed though.

[2manybills]

I agree. As long as we don't reaffirm our mortgage we can walk away if the market here continues to tank. We've put a lot of work into our house and yes, we could probably find something equally as nice or nicer, the thought of moving right now with this going on, a sick MIL in assisted living and DH's salary being less than half of what it used to be, would make me crazy.

Less than 2 years ago we were 250K in the positive on the house.

[willbfree]

You should contact WF at the special bk dept number listed on your creditor matrix and ask if you can continue your current payment arrangement. Once I talked to someone at that number WF even began sending our monthly mortgage statements again.

[2manybills]

I'm going to. If necessary, I can walk in and make payment in the bank. It is right around the corner from my house. My attorney said that they were the worst and in So. Cal. the trustees are starting to get upset with them because they keep freezing bank accounts and the trustee's have to do letters to get the accounts unfrozen. They are putting even more stress on an already backed up system.

[willbfree]

We make our mortgage payment at the local WF branch right down the street. So I know that's acceptable for WF whether you contact them or not. The fact that you can start receiving the monthly statements again was well worth the telephone call.