Posted on: 06th Aug, 2009 03:05 pm
We are currently going through a loan modification with Wells Fargo and just starting the trial period.
We bought out house for $353, have $100K into it, still owe $273K and the house is only worth $165K right now.
Has anyone has any experiece with Wells Fargo either applying or not applying your unemployment money as income to help qualify or not?
Any suggestions on if a modification is better than a short sale, knowing it is going to take many years of payments just to break even with what we owe, not even including what we put into it.
Thanks!
We bought out house for $353, have $100K into it, still owe $273K and the house is only worth $165K right now.
Has anyone has any experiece with Wells Fargo either applying or not applying your unemployment money as income to help qualify or not?
Any suggestions on if a modification is better than a short sale, knowing it is going to take many years of payments just to break even with what we owe, not even including what we put into it.
Thanks!
Hi ElegantIdeas,
In my opinion, a loan modification is a better idea than a short sale because it would help you in saving the property. Moreover, if you keep on paying your mortgage dues according to the new terms and conditions, your credit will not be affected. If you go for a short sale, it will lower your credit score by 75-100 points and you would also be liable for the deficient amount.
However, you should note that the lender would finally consider the loan modification request if he is convinced that you would be able to make payments after your mortgage is modified.
Thanks
In my opinion, a loan modification is a better idea than a short sale because it would help you in saving the property. Moreover, if you keep on paying your mortgage dues according to the new terms and conditions, your credit will not be affected. If you go for a short sale, it will lower your credit score by 75-100 points and you would also be liable for the deficient amount.
However, you should note that the lender would finally consider the loan modification request if he is convinced that you would be able to make payments after your mortgage is modified.
Thanks