Upside Down Mortgage

Archive for June, 2007

Mortgage Modifications Wells Fargo

Question: While I am trying for a Mortgage Loan Modification, should I make house payments?

We are current on our payments, but it seems that the Wells Fargo would be more co-operative and give us a better loan modification if we are not current.

Answer: It really depends on your situation however Here are a few points to consider...

1. Ff you have bad credit and low-no income it can be a good idea to stop paying your mortgage payments. It can take months to a year without any action from a lender in a lot of cases. If you don't make any mortgage payments in almost a year, you could have $10,000+ saved up. that is more than enough to negotiate yourself a fresh start.

2. If you have a good income and stop paying mortgage payments during your loan mod process your lender will not appreciate this or take it lightly. After you submit your financial worksheets they will wonder why you haven't paid your mortgage payments and you will be less likely to get approved. They feel that if you could have payed your mortgage before, restructuring your payments will not change the situation...

Just my 2 Cents...

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