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Hi all,

I just found this fantastic forum while searching on Google.

Basically, my wife and I own a home in California.

First loan - initially 80% interest only. This was automatically reset to a 30 year principal + interest after 5 years - we are paying around $2300 a month

Second loan - 5 year fixed interest only. We are paying around $1100 a month.

Both are purchase money loans. Both are owned by Wells Fargo.

Original loan amount - $704,000
House value in today's market - $575,000 (according to Zillow)

We have never missed a payment and have always been current.

I just received a letter from Wells Fargo saying that the loan term on the 2nd loan is expiring in May 2011 and that I would need to payoff the entire pending loan amount of $133,000

We clearly do not have that kind of money. At the same time, we don't want to do a short sale or a foreclosure since we are not in dire situations (but we will be if we are forced to pay that $133,00 which we don't have).

I am planning to call the Wells Fargo Operations number tomorrow to find out my options and to tell them clearly that we don't have the $133,000 to pay off the 2nd loan.

What are my options here if I don't want to short sale or foreclosure (although I am fine with threatening them with it on the phone if that will help in any ways)?

Is there anything I can do to negotiate and pay off the 2nd loan at a much smaller amount - say 10% or 20% of the amount without having to do a short sale? And how adversely would this affect my credit history?

I would be grateful for any inputs the wonderful members of this forum can give me...

Thank you in advance.

jerry · Posted: Fri Mar 04, 2011 2:29 am Post subject:

Hi railfan,

You can apply for a loan modification if you want to save the property. This will help you in getting a repayment plan with affordable rates and terms. However, it will be your lender's discretion whether or not he will agree to it.

Thanks,

Jerry

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Help - Wells Fargo 2nd loan in CA expiring in 3 months!

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