Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
My bank has just decided to send me a Debt-to-Income
Modification application. That was after an hour and a half
telephone call to try and save my latest foreclosure. The
mortgage is with Wells Fargo, and my last mortgage payment was
November 2007. It has taken them quite a while to get to a
foreclosure hearing which is set for tomorrow. The telephone
call took so long because I had to go through all of my income
and all of my expenses (and I have a lot of expenses) to see if
I qualify for anything. After all of the income and all of the
expenses, Wells Fargo asked how much money I could come up with
as a good faith payment in order to reinstate my mortgage (Wells
Fargo wanted about $30,000). I balked and said one thousand
dollars. Wells Fargo balked and asked for something higher. I
said one thousand two hundred dollars (Do not let them talk you
into something you cannot afford, and I would give them a low
value anyway). Wells Fargo balked again and said I did not
qualify so they would send me the Debt-to-Income Modification
Application to see if I qualify for that program.
I am excited about this
as the representative said that this is one of the new programs
that the government has rolled out. It sounds like it might
include cutting the principle on the loan, but the
representative did not have the details for me. Someone else
would have to disclose the details after I fill out and fax back
the application.
Unfortunately, the
foreclosure hearing date for this property is tomorrow. Of
course, that is only the hearing. The foreclosure sale date will
be about thirty days later. That should give me some time to get
the paperwork filled out and returned and under consideration.
If you are facing
foreclosure, make sure you have tried this. You might be tempted
to give up and not get this far, but have patience. Sit through
the long phone calls with the bank customer service reps (these
are the loss mitigation customer service representatives - not
the collections department customer service representatives).
Give them your income and expense details and your last few
paystubs and your hardship letter (I did all of these today).
See if you pass the first test. If you fail this first test,
your bank might have this Debt-to-Income Modification
application. If you pass the first test, you save your house
from foreclosure anyway. All it takes is time and effort and
desire (you have to want to save your house otherwise I would
not spend the time and effort) on your part. Even if you have
been through this first income and expense detail process
before, this Debt-to-Income Modification Application might not
have been available at that time; and I doubt banks voluntarily
hand out these applications to their homeowners who are facing
foreclosure. Think about it. It might be worth it for you. I
think it is worth it for me, and I am excited about getting the
application. I will post an update as soon as I have more
information for you.
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