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Anyone out there have experience with short sales in the past year? Specifically with Wells Fargo? We have decided to try and pursue a short sale and I'm looking for any advice. There is so much mixed information out there, it has my head spinning! One thing I read says Wells Fargo is very good about short sales, the next says they are the worst. I suspect some of it has to do with when the information was posted...it seems that they have made some improvements to their system this year which has helped.
We currently have our 1st mortgage with Wells Fargo for $144,714.97 at a 5.875% interest rate we pay $1,246.97 a month. We have our 2nd with Wells Fargo Financial for $38,766.17 at a 10.66% interest rate we pay $463.25. We are in a very tight financial situation and owe more on our bills than we can afford. We are currently one month behind on our 1st mortgage. I have called to pursue loan modifications and have been denied. I have tried to see if I can get a personal loan to cover the difference of what we could sell for vs. what we owe and have been denied. I am guessing we will be $10,000-20,000 short.
We just put our house on the market (with Century 21) asking close to what we owe, which I think is high and guess we will probably have to reduce the price eventually. We have also submitted the required information to start the short sale process (including a harship letter and financial worksheet) and received a confirmation letter from Wells Fargo. We are just waiting for an offer on the house and then the realtor will submit the rest of the required information.
The following is part of the hardship letter we wrote:
"We are writing this letter to inform you of our current economic hardship. Due to our current financial obligations, freeze on income and the current state of the housing market, we can no longer make the full mortgage payments, refinance or sell our house for what we owe on it.
We purchased the property at XX in July 2005. Since that time debt and impacts of the recession have had a negative impact on our family’s finances. At the end of last year we knew that we needed to make changes to our spending habits. We were overwhelmed with two large credit card balances and made the decision to contact a credit counseling company, who has been assisting us in paying off these balances since December 2008. We have not used credit cards since that time and have been successful at not accruing anymore debt this year. We both work for the same organization and usually receive cost of living raises every August, however due to the current economy, our organization did not give any raises this year which has had an impact on our financial situation. This normally increases our monthly income approximately $300. We have always made our mortgage payment our first priority. We have explored the option to refinance our 1st and 2nd mortgages with no success. Earlier in the year we cashed out our Roth IRA to make payments on our monthly expenses. A couple of months ago we utilized a $6,000 inheritance to get caught up on all of our bills, including our mortgage payments. We have also recently applied to refinance our vehicle loans in the hopes to reduce our interest rate and monthly payments (approval is currently pending). We also requested forbearance on our student loan payments. Despite all of our efforts, we have not been able to maintain current payments on many of our bills and we have again, recently fallen one month behind on our mortgage payment.
We have come to the realization that our current financial situation cannot sustain a home mortgage and home equity loan of a combined $1,717.61 per month. Our current monthly income is $5,615.19 and our current monthly debt payments (including mortgages) total $3330.12, exceeding 50% of our monthly income. We would like to sell our home, avoid foreclosure, salvage our credit and relocate out of state to an area with a more competitive job market in our careers. Please consider allowing us into your Short Sale Program so that we can sell our house before it goes into foreclosure. This will allow us to settle our financial obligation to you and have a chance to get back on our feet, without having to file for bankruptcy.
Attached please find a copy of our financial worksheet and pay stubs from our employer for proof of income in the past 30 days.
Thank you very much for your consideration and we deeply appreciate your help and understanding in this matter."
Thanks for any information you can share!
We currently have our 1st mortgage with Wells Fargo for $144,714.97 at a 5.875% interest rate we pay $1,246.97 a month. We have our 2nd with Wells Fargo Financial for $38,766.17 at a 10.66% interest rate we pay $463.25. We are in a very tight financial situation and owe more on our bills than we can afford. We are currently one month behind on our 1st mortgage. I have called to pursue loan modifications and have been denied. I have tried to see if I can get a personal loan to cover the difference of what we could sell for vs. what we owe and have been denied. I am guessing we will be $10,000-20,000 short.
We just put our house on the market (with Century 21) asking close to what we owe, which I think is high and guess we will probably have to reduce the price eventually. We have also submitted the required information to start the short sale process (including a harship letter and financial worksheet) and received a confirmation letter from Wells Fargo. We are just waiting for an offer on the house and then the realtor will submit the rest of the required information.
The following is part of the hardship letter we wrote:
"We are writing this letter to inform you of our current economic hardship. Due to our current financial obligations, freeze on income and the current state of the housing market, we can no longer make the full mortgage payments, refinance or sell our house for what we owe on it.
We purchased the property at XX in July 2005. Since that time debt and impacts of the recession have had a negative impact on our family’s finances. At the end of last year we knew that we needed to make changes to our spending habits. We were overwhelmed with two large credit card balances and made the decision to contact a credit counseling company, who has been assisting us in paying off these balances since December 2008. We have not used credit cards since that time and have been successful at not accruing anymore debt this year. We both work for the same organization and usually receive cost of living raises every August, however due to the current economy, our organization did not give any raises this year which has had an impact on our financial situation. This normally increases our monthly income approximately $300. We have always made our mortgage payment our first priority. We have explored the option to refinance our 1st and 2nd mortgages with no success. Earlier in the year we cashed out our Roth IRA to make payments on our monthly expenses. A couple of months ago we utilized a $6,000 inheritance to get caught up on all of our bills, including our mortgage payments. We have also recently applied to refinance our vehicle loans in the hopes to reduce our interest rate and monthly payments (approval is currently pending). We also requested forbearance on our student loan payments. Despite all of our efforts, we have not been able to maintain current payments on many of our bills and we have again, recently fallen one month behind on our mortgage payment.
We have come to the realization that our current financial situation cannot sustain a home mortgage and home equity loan of a combined $1,717.61 per month. Our current monthly income is $5,615.19 and our current monthly debt payments (including mortgages) total $3330.12, exceeding 50% of our monthly income. We would like to sell our home, avoid foreclosure, salvage our credit and relocate out of state to an area with a more competitive job market in our careers. Please consider allowing us into your Short Sale Program so that we can sell our house before it goes into foreclosure. This will allow us to settle our financial obligation to you and have a chance to get back on our feet, without having to file for bankruptcy.
Attached please find a copy of our financial worksheet and pay stubs from our employer for proof of income in the past 30 days.
Thank you very much for your consideration and we deeply appreciate your help and understanding in this matter."
Thanks for any information you can share!
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