Urgent help needed

[nickysduck2]

I got a home loan with Wells Fargo Financial back in 2006 and the original loan had a fixed rate for 3 years that would adjust after the 3 years.A year ago my husband and i went through a group called N.A.C.A ad got our home loan modified for one year.Our payment dropped by $300 per month and the forbearance agreement that Wells Fargo sent us clearly states that the interest rate charged during the forbearance period and after will be FIXED. They put fixed in all caps on the contract. It states that the rate will be 7.8800%.
The forbearance period is up on September 9 2010 and I recieved a letter from Wells Fargo telling me that our payment will return to normal and that if we had a varibale rate on our original contract our interest rate may change according to our original note. how can they tell us our rate will go up when the forbearnce aggremment clearly states our rate will be fixed after the forbeance period? What can I do?

[AbbeyA]

I would have your attorney go through it and make sure there is not a catch in there. If the terms clearly state that the payment will go back to the original payment AND the interest rate will stay at the 7.88% after the forbearance period is over, it would seem to me that Wells Fargo needs to have that brought to their attention. But again, have an attorney look it over and advise you on this.

Have you paid according to the terms of the forbearance agreement every month? Were you late on any payments? It's possible there is a small clause in there stating that if a payment is late, the interest rate after the forbearance agreement may not remain fixed at the agreed upon amount.

[LadyInTheRed]

The letter says that the rate MAY change. It's probably a form letter they send to everybody coming to the end of their forberance period. Call Wells Fargo and ask what the rate will be after the foreberance period ends.

ETA: If what Wells Fargo tells you isn't consistent with your understanding of the agreement, call N.A.C.A. for help.

[mijd]

It's amazing that years ago it was good to have a attorney present at your closing or at least have a lawyer look over your loan contract. Since the late 80's I've been told at closings even for a refi that lawyers weren't necessary. That is a lesson learned on my last closing. If I ever have the opportunity to purchase a house in the future, I will consult a lawyer.