Skip to main content

Can I still get a modification or is Wells Fargo going to foreclose on my house. If I foreclose how long can I stay in my house?

Neptune, NJ |

In NJ. October 2011 husband lost job, was placed on reduction plan paying 1000, original monthly pmts 1800. March 2012 divorced. July more hardship, missed reduced payment. Plan broken. Received letter of intent to foreclose. September 2012 Applied for modification. Gross income 4000, take home 3000, monthly expenses 1300. Placed on 1800 trail pmts (same as original pmt). Asked servicer if these would the new pmts? Explain to servicing officer is too much. She swore she does not know also stated that how it is done. Scrapped but made all 3 pmts. Silence for 3 months Apr 2013 Call from Servicer, we needed to pay 3000 before modification contract is issued. She said pay 1/2 now (I did) the rest a month later. Within a month, letter of denial and intent to foreclose. Now 12 months behind.

+ Read More

Attorney answers 2

Posted

Sometimes it is possible to enforce a loan modification when you have been offered a trial period, made payments and then the mortgage company reneges. The most important thing is that if the mortgage company refuses payments from you, you need to put those payments aside -- do NOT spend the money on anything else. Get together all of the letters and paperwork back and forth from the mortgage company, your payment receipts and the denial letter and contact a lawyer -- preferably within thirty days of when you received the denial.

Foreclosure in New Jersey takes around 270 days. New Jersey is a "judicial" foreclosure state, meaning that foreclosures go through the courts. That means that you can defend yourself against the foreclosure by answering the complaint in writing explaining your defense. If you don't answer the complaint, ultimately judgment will enter against you and the house will be sold at sheriff's sale.

Negotiating with the mortgage company or participating in court sponsored mediation does NOT stop the mortgage company from moving forward with the foreclosure. You should not assume that just because you are trying to work something out that the mortgage company has stopped the foreclosure process.

Adam Lefkowitz

Adam Lefkowitz

Posted

Just as a follow up to Ms. Schore's well-stated answer: the lender's remedy for when a homeowner defaults on mortgage loan repayments is foreclosure. Any participation by the lender in a loan modification program, or any acceptance of a short sale, is completely the lender's option. Borrowers can not prevent lenders from foreclosing following an event of default. Having said that, most lenders don't want to own property and are willing to work with homeowners because banks would rather have some money from the loan, than foreclose the mortgage and end up holding an empty house with no one making payments on the loan.

Asker

Posted

So I called Wells Fargo today and I was informed that I am not in active foreclosure. They also stated that they are going with the HUD Partial Payment Claim Option. I was told that they are actively working on my Account and not to do anything on my end

Asker

Posted

So I called Wells Fargo today and I was informed that I am not in active foreclosure. They also stated that they are going with the HUD Partial Payment Claim Option. I was told that they are actively working on my Account and not to do anything on my end just wait. Just now looking into what PCC is. My concern is that my original payment is very high and my income has not changed since. Would I be able to get a modification after the PCC brings my loan to current.

Adam Lefkowitz

Adam Lefkowitz

Posted

Under the HUD partial payment option (HUD PCC), your lender advances funds on your behalf in an amount necessary to reinstate the delinquent loan. At which point you execute a promissory note and mortgage to HUD. This mortgage will be junior to your lender's mortgage. The promissory note held by HUD is not due and payable until you either pay off the lender's mortgage, or until you no longer own the property. As to whether you could obtain a loan modification after the HUD PCC brings your loan current: yes you can, under the right circumstances. The government offers this website to provide guidance: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqpc I suggest you consult an attorney for a careful and thorough review of the HUD PCC mortgage documents; and to make sure you understand your new obligations.

Asker

Posted

Thanks this is very helpful.

Posted

First things first, I would seek legal counsel, as foreclosure is a very serious matter, and banks are not the easiest entities to deal with. You should especially retain an attorney to deal with the bank's stubbornness as it pertains to the loan mod trial payments.

This being said, however, the notice of intent to foreclose is a required letter that must be sent before suit is filed. It does not mean that WF has filed suit, or if it will even bother. If your house is underwater (i.e., you owe more than it's worth), the bank has an interest in dragging the process out as long as possible, because it won't get the money it's owed at sheriff's sale.

One program that I use with my clients is the New Jersey Homekeeper Program. Simply put, you have the ability to get up to a $48K grant from the government to go towards your arrears, provided you stay in the house for 10 years. We use this money as leverage towards obtaining a permanent loan mod for our clients.