Sand’N'Sable asked:
First, I am not currently in default on my mortgage. We have just had a really hard time paying it each month. So we applied for the Making Home Affordable Refinance program. After months of faxing in paystubs and harship letters..etc, we finally got some news today. They sent us a Moratorium Letter which says that we have 4 months to not pay our mortgage, but then we are “supposed” to pay the balloon payment. The Wells Fargo rep told me that 99% of people CANT pay this so they tack it on to the principle and work something out then.. Please help. Should I accept this moratorium??
Sean
First, I am not currently in default on my mortgage. We have just had a really hard time paying it each month. So we applied for the Making Home Affordable Refinance program. After months of faxing in paystubs and harship letters..etc, we finally got some news today. They sent us a Moratorium Letter which says that we have 4 months to not pay our mortgage, but then we are “supposed” to pay the balloon payment. The Wells Fargo rep told me that 99% of people CANT pay this so they tack it on to the principle and work something out then.. Please help. Should I accept this moratorium??
Sean
Esther
You are not specific enough, – when are you supposed to pay this “balloon payment” – at the end of 4 months, or at the end of your mortgage contract? Sounds like your bank is offering you a fairly bad deal. You need a loan modification – where the bank lowers your monthly payments and adds time to your mortgage (30 years to 40 years) If you can make the balloon – go for it, otherwise – keep paying monthly.
Comment by dusty_titus — September 9, 2010 @ 12:28 am
Lisa
As much as I hate to say this- spend a couple of hundred bucks and talk to an attorney. What a mortgage rep tells you is not legally binding and often they simply do not know what they are talking about. Sometimes they will outright lie to you.
Your mortgage is a contract and neither party can unilaterally change the terms without it being mutually consented to. Have someone who knows how to read the terms look over everything and then tell you what your options are.
If they tell you that you don’t have to pay the mortgage and then expect you to pay a balloon payment they may very well be setting you up. After 4 months of not paying you will be in default.
Again, what they verbally tell you doesnt matter. They are not obligated to tell you the truth, TALK TO A LAWYER.
If you are really having a hard time paying your rent get a second job, It may be unpleasant but I will guarantee you that it will be easier than having your mortgage considered in default and finding yourself in default. Trust me on this one.
Comment by charles w — September 10, 2010 @ 6:26 am