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Old 06-27-2011, 02:22 AM
 
1 posts, read 2,499 times
Reputation: 10

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Loan Servicer is Wells Fargo HomeMortgage.
Loan Investor is FreddieMac.

Original loan was 5/1 ARM with 5.375.
Stopped payment and Defaulted with one year payment as of 5/2011.

Worked directly with wells fargo after going thru MHA approved Agent.
I see the loan modification terms and condition is very much favorable to Wells Fargo.

Original Loan was 5/1 ARM and 5.45% Interest.
5 Years completed as of 8/2010.

Modified Loan is for 40 years fixed with same 5.45%. It is permanent modification, I was told to sign and return the document in 10 days.

Do I still have any chance to negotiate with Wells Fargo on reducing the interest rate?

Please advice me.
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Old 06-28-2011, 10:29 AM
 
Location: Washington DC
487 posts, read 1,255,987 times
Reputation: 516
Quote:
Originally Posted by chrisnowalk View Post
Loan Servicer is Wells Fargo HomeMortgage.
Loan Investor is FreddieMac.

Original loan was 5/1 ARM with 5.375.
Stopped payment and Defaulted with one year payment as of 5/2011.

Worked directly with wells fargo after going thru MHA approved Agent.
I see the loan modification terms and condition is very much favorable to Wells Fargo.

Original Loan was 5/1 ARM and 5.45% Interest.
5 Years completed as of 8/2010.

Modified Loan is for 40 years fixed with same 5.45%. It is permanent modification, I was told to sign and return the document in 10 days.

Do I still have any chance to negotiate with Wells Fargo on reducing the interest rate?

Please advice me.

5.45% Sounds like a pretty good rate to me.
My rate is 4.875% and I have perfect credit.
Never missed a payment in my life and my Debt to Income ratios are conservative.
You Stopped payment and Defaulted on your mortgage and are only being penalized .5 percent.
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Old 06-28-2011, 07:35 PM
 
4,567 posts, read 9,090,451 times
Reputation: 6661
Your kinda lucky to get a permanent loan modification at all. Why split hairs over 1 or 2% and risk loosing the deal? They could just decide to foreclose and your done.
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Old 06-28-2011, 07:51 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
33,091 posts, read 60,101,561 times
Reputation: 36557
Take what you can get and be happy to be one of the very few lucky ones. Modifications are hard to come by. We have Chase and got 4.5% fixed for the remaining 23 years, but it would take several pages to tell the story of how much work that took. I know many more people that got no mod.
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Old 06-29-2011, 10:10 PM
 
Location: El Dorado Hills, CA
3,724 posts, read 8,837,966 times
Reputation: 3887
Interest rates are really low, and they will probably get a lot higher in the future. That rate for 40 years? It will seem like a really good deal many times in the next 4 decades.
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Old 07-03-2011, 08:25 AM
 
Location: MID ATLANTIC
8,140 posts, read 19,992,551 times
Reputation: 9382
Forty years significantly drops the payment.

Take the deal and run, it's rock solid if you had deliinquencies.

Or do you think you deserve the same rates as A credit buyers getting new loans today?
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Old 07-03-2011, 02:47 PM
 
2,879 posts, read 7,099,631 times
Reputation: 1172
How does your new PITI compare with what your rent would be on an identical property? They gave yo a gift, they didn't have to, but it still is probably better for them, than taking your house back.

Seems a little bit better than the 5 Dollars Cox cable sent me to show their appreciation for me not cancelling after two rate increases.

A question that just occured to me is what rate would your loan have adjusted too. It sounds like you very well may have shot yourself in the foot if you were at LIBOR + 2.75.
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Old 07-03-2011, 05:58 PM
 
3,576 posts, read 6,276,187 times
Reputation: 1432
That is not a good deal. Considering current rates run in the mid to high 4s. Wells is not giving you what others have gotten.

My cousin was already offered 2% fixed for 5 years and than interest rates will go up no faster than 1% per year. But the max interest rate she will ever be hit with is 4.75%

It depends if you really want to stay in the house and your overall financial health. But if you are in trouble, that wells fargo offer is not a good one fo most in need.
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Old 07-05-2011, 11:49 AM
 
9,734 posts, read 8,565,570 times
Reputation: 6366
I thought loan mods were made to stop the bleeding so the homeowner could sell when home values recovered and some equity was restored.
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Old 07-05-2011, 12:36 PM
 
Location: Albuquerque
5,548 posts, read 14,692,562 times
Reputation: 2730
Quote:
Originally Posted by aneftp
My cousin was already offered 2% fixed for 5 years ...
max interest rate she will ever be hit with is 4.75%
Did your cousin have to default to get the mod?

From what I've seen, you can't get a mod and can't get a short sale
unless you can show that you are in "distress." Draining your retirement
accounts to stay current means that you are not in distress as long as
there is at least one more mortgage payment in your account.
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