WFB in no hurry to modify or foreclose ?

[yomann]

I just got an opinion from a realtor friend, and want input from forum members.

Very briefly I have a 1st with Wells Fargo which I have been trying to modify for a year with the usual delays and runarounds. The 1st is for approx. $400K, with the home valued at $675K, so the 1st is sitting on a $275K equity position.
(A 2nd with PNC of $300K is out of the picture for now - charged off last Dec., I filed BK7 got discharged, and have not heard a word from them.)

The realtor believes WFB has no real incentive to modify my loan (as they have $275K of headroom) and is also in no hurry to foreclose either. He thinks WFB is too busy foreclosing on properties where they loose money every month. In my case $275K of equity for the first will cover missed payments and late fees for years, and WFB will eventually get paid when they foreclose.

This is like having a good news/bad news scenario all wrapped into one
From your experience, do you buy into his assessment of my situation ?
All comments and feedback appreciated.

[pcn]

They dint really have access to the 275k equity, do they, if the 2nd is for 300k? It may be charged off, but they still posses the lien I'd assume. Why would the 2nd not foreclose and attempt to get some of the 275k equity toward their 300k?

[yomann]

They dint really have access to the 275k equity, do they, if the 2nd is for 300k? It may be charged off, but they still posses the lien I'd assume. Why would the 2nd not foreclose and attempt to get some of the 275k equity toward their 300k?

According to the realtor, if the 1st forecloses the 2nd is wiped out and gets nothing - strange ?
For the 2nd to foreclose, they would have to buy out the first AND incur all foreclosure costs, and manage the resale.
Theoretically they could, but not very likely ......
That's what I have been told by a realiable realtor who should know.

[pcn]

With so much equity I would be worried about the 2nd. Even with, say 30k, in foreclosure and resale costs they would return almost a 1/4 of a million. That seems like a pretty good ROI if they are presently getting nothing.

[NoMoreCards]

With so much equity I would be worried about the 2nd. Even with, say 30k, in foreclosure and resale costs they would return almost a 1/4 of a million. That seems like a pretty good ROI if they are presently getting nothing.

I agree completely. I would be worried about it as well. The second still has a secured interest in that house.