Last year after much consternation Wells Fargo sent papers on a modification I believed was the making home affordable modification ...there was a step payment schedule laid out with the amount due being $1137.39 for the first 5 years ....The amount due on the mortgage said $260.000 ...for 1 year I paid this amount.
About 3 weeks ago I was contacted that this payment was a mistake and has taken a year to correct and new documents were being sent....They came and the payment went up to $1320 and the amount due on the mortgage was now $265,000.
I contacted a local housing group...they contacted Wells Fargo who said to them that I am in arrears for over $7000, that the payment did not include taxes and insurance and was not a making home affordable modification....that I do not qualify....and was in house.....they state that I need to make a payment of over $1800 a month.
I am unable to make this payment as I bring in only $2500 on social security and a pension...my mortgage was a no income verification mortgage for 265.000....I know I cannot afford my home but the price I paid in 2007 was $335,000 and I put over $80.000 into it...so I do not want to short sale it...I already put it on the market for $335,000 ...The housing counselor said to short sale and not make any payments...what advice do you have...it is in excellent condition and shows well.....
Send the new loan modification agreement back to Wells Fargo with offer declined and send a copy of the previous loan modification agreement that you have had for the last year. State the agreement that is currently in force is acceptable to you and you do not wish to change it unless the new terms are better and affordable before you will sign.
If you decide to sell your home, a local Realtor would have a better idea of what your home would sell for. If you can get $335,000 then go for it.
UPDATE: This Has Now Come Up With Several Of My Clients And Been Stopped
I have had several clients receive official letters from their lenders (now also Chase and B of A) saying they had to change the modification terms because a mistake had been made by the lender and now had to raise the payments.
I told my clients the same handling as above and each time the bank backed down and in one case the lender even sent a refund check as they had been charging too much in the escrow for the insurance.
This handling does work. There is nothing the bank can do to change the permanent loan modification agreement unless you agree and sign new papers or start paying the increased rate.