Posted on: 19th Mar, 2009 02:07 pm
I live in Phoenix, AZ I built a new house and financed about 360k in 2005 and I did an 80/20 loan so I didn't have to pay PMI. The loan is a 7 year ARM. I then added a pool and landscaping back in 2006 and that was put on my 2nd loan. So I have a first mortgage at about 288k and the 2nd is at 122k. The house is probably only worth around 266k now, ugh! Both loans are thru Wells Fargo. I have excellent credit around a 780 score as does my wife. We have never missed any payments but both our jobs are up in the air. We can afford the payments but it has been ruff since my wife has taken a pay cut and now she is possibly going to lose her job. I called Wells Fargo before and they won't refi my house because we are under water. I don't want to leave the house but if my wife looses her job, we may have no choice. What options do we have right now? I read about the new housing plans that are reducing people's principle and getting their loans changed to low interest 30 year fixed rate. It seems like you have to purposely stop making payments to get them to help you out. Can someone please give me some advice? Thanks, Joe
Hi jshram,
I think the best option for you would be to go for a loan modification. This will make your monthly payments affordable. It will not hurt your credit. However, if you are current on the loan, the lender generally don't want to modify the loan. Then, you need to send them a hardship letter stating your difficlty in making the payments in future so they consider your request for the modification of the loan.
I think the best option for you would be to go for a loan modification. This will make your monthly payments affordable. It will not hurt your credit. However, if you are current on the loan, the lender generally don't want to modify the loan. Then, you need to send them a hardship letter stating your difficlty in making the payments in future so they consider your request for the modification of the loan.
Hi
What Alessandro had suggested is right. In such a situation Loan Modification would be the best option for you. It can not only reduce your monthly payments, but can reduce the principal amount as well.
What Alessandro had suggested is right. In such a situation Loan Modification would be the best option for you. It can not only reduce your monthly payments, but can reduce the principal amount as well.