WHat can I expect can't pay mortgage first time in 8 years

I have been unemployed and frantically searching for a job for 1 1/2 years. My unemployment ran out last month. I have no savings left and my wife has a little job to pay utilities etc. We have some help from family but are unable to pay anything towards our mortgage with Wells Fargo. We are 15 days late and yesterday they called us five times. WE HAVE NEVER MISSED A PAYMENT EVER! We are afraid to talk to them and say the wrong thing. We did tell them our situation. What makes this worse is a year ago we tried to refinance and they would not do it because I was unemployed. I have been getting some interviews and I sense something might be coming soon in the way of work. I don't want to ruin my credit but what can I do. I also don't want to be living out of our car! How long will it take until the bank takes action? Any advice?

gatto,

My advice is that you talk to them, and let them know what is going on. The WORST thing you can do is not talk to them.

Ask them about what your options are after your first payment is missed. Ask them if they will allow you to do a short sale. Ask them how many payments you have to miss before you can qualify for some assistance. Ask them about the possibility of doing a loan modification. Ask them about any other programs they have for homeowners who have fallen behind in their mortgage payments.

From what I understand, Wells Fargo is one of the worst banks to deal with, but it isn't going to hurt to ask the questions, and look into all of your options. There is a talk radio host that I listen to who talks all the time about how he sent Wells Fargo a mortgage payment every other month. He's struggling, was denied a loan modification, and could not refinance for a lower interest rate, so that's how he decided to handle his situation. He managed to stay in his home for about 2 years doing that, until the program "Keep Your Home California" helped him bring his mortgage current (don't know what state you are in). Maybe sending a payment every ther month will work for you until you can qualify for some program, maybe not. Anything is worth a try, but definitely talk to them!

If worse comes to worse, you'll have to find a place to rent, and maybe you will be able to do that before your credit is damaged too badly.

I wish I could offer you something better than the above. I have watched friends, family members and neighbors go through this, and the banks don't seem to care one bit that they are forcing people to walk away from their homes, because they simply refuse to help.

gatto,

Im so sorry you are going through this. LRS gave you great advice. Please let us know how you made out if you talk to them. LRS is right, you should NOT avoid them, it will only make it worse.

Each state is different when it comes to at what point they will start the foreclosure process. Some its 45 days past due, others its 3 or 6 months. Please keep in mind, last I knew once you are in foreclosure it is illegal for them to take a mortgage payment. If you get a letter from their lawyers saying you owe X amount, only the lawyer is allowed to accept payment. Dont count on any offer from them until or unless it is in writing. Any phone promises mean nothing. I have seen some pretty nasty things from mortgage companies (went through this myself). I hope you are able to work something out with them, good luck and god bless!

When I went through foreclosure, I was lied to by the mortgage collection dept. They told me they would give me a 30 day extension so we started to desperately call around to see if we could get one of those mortgage rescue deals, we got 2 offers and they were willing to refinance us for a lower rate and lower payments. We got as far as one of the companies just waiting for the mortgage co to give them the payoff figures. they were trying to cut a check but couldnt do it until they had that figure, well the Mortgage co (Litton Loan) would not release the figures and we lost the house because of it. They lied about the 30 day extension, they came 2 weeks later to auction it and it was gone. I called back and the woman admitted she lied and actually said "So what, what else was I suppose to do?" I asked her how she could sleep at night and chewed her out for an hour, I was stunned that she never hung up on me. I even told her I was going to find out where she lived and come sit on her front lawn with all of our belongings. I was devastated. Moral of the story, just be careful of false promises it can be very emotionally draining and devastating. Request any promises in writing. write down the date and time you called and most importantly ask for a name!

I was just thinking, my story probably scared you! Im sorry if it did. This was in 2007 and it was at the very start of the mortgage crisis. things have changed a lot since then, it may not be as bad now. Dont give up hope!

Hi Gatto!

Listed below is a link to the " Making Home Affordable.Gov website
It is the official program of the Department of Treasury & Housing and Urban development. It will give you an idea of some of the options that may be available to you and your family. I just finished a 6 month mortgage forebearence with Wells Fargo. Under the forebearance my mortgage was reduces $500.00 They are currently working on a loan modification for me. I loss my job in August of 09. And my income is very limited. I am also working with a local government agency for NJ residence. The worst thing you can do is not respond. Please check out the website so you will be familiar with what they are talking about when you call. My prayers are with you and your family.


www.makinghomeaffordable.gov
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