Mortgage Forum

Joel Fraser

Hello ALL - GREAT JOB wit the website, I have referred 3 of my friends to this site - and all info here has been very helpful.............keep up the great work :) So this is our story - our family consists of me, my wife and our 3 month old. In *March 2006, we bought our house for 562K* (banks est. of the property was $585K) putting 10% down, and financing the other 90% by breaking it into 10% + 80% to avoide any PMI charges. Our household income was 111K per annum and we bought the house only on my name (no joint loan). The 10% loan amouting to $90K is with Provident Funding at 7.875% for 30 year fixed.The 80% loan of $417K is with Wells Fargo at 6.25% for 30 year fixed. We have *not missed any payments and are current on both loans*. Actually using some extra money from savings, we have been overpaying the 10% loan making the current loan amounts as follows -We now (as of July 16, 2008) owe Provident Funding $63K, and Wells Fargo $405K. We also make 153K per annum now.However, with our recent addition to the family and also financially supporting my sister for her education, payments are beginning to become a little problematic. We were planning on refinancing to make both the loans a single loan. However, a *recent assessment of the property in Jun 2008 has lowered the value to $460K* (specially due to the # of foreclosures, unsold peroperties in our area). Just to get some more info, I called WELLS FARGO to see what they could do, and after they connected me to the LOSS-MITIGATION department, you wont believe what the *phone support people suggested*. They said that as I am current on my payment, *I should actually MISS atleast one payment, and then my case becomes better*. I took their information and hungup saying I will call again after deciding with my wife, and decided to ask you guys for some help to see how I should proceed? I really do not want to miss any payments, as I have the moeny to pay each month.I have been following people's stories very closely, and wanted to request my banks to give me some relief. Do you think I should pursue a "LOAN MODIFICATION" with my banks?Thanks in advance for reading my case..................