Latest Posts
Home > Reader Questions > I Would Like to Try and Settle My Wells Fargo Underwater Second Mortgage. – Tom

I Would Like to Try and Settle My Wells Fargo Underwater Second Mortgage. – Tom

I bought a condo in 2006: Bought a month later by Wells Fargo.
196K 80/20 Loan
80: 156K Interest only 15yr then interest kicks in
20: 37K Interest only Balloon payment at the end of 15yr.

The condo is maybe worth 105k
There are 3 short sales ranging from 89K-115K some have been on the market foe well over a year.

I would like to try to settle the 2nd since I’m so far underwater it seems like I’m throwing away my money. I stopped maying on my 2nd and I’m getting the usual calls from Wells Fargo. I would like to know the best way in trying to settle with Wells Fargo.

Thank you!

Tom

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

I Would Like to Try and Settle My Wells Fargo Underwater Second Mortgage. - Tom by

Share This and Spread the Word

About Consumer

Consumer
This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.
  • Msullivan

    Tom,

    A second is a secured loan and under some circumstances and in some states it is a recourse loan. I’m not sure they would be open to settling but I also wonder why you are bothering. You own a condo worth maybe $100k and you are paying on a $150k first mortgage while defaulting on the second.

    If you are far underwater in a complex full of underwater condos and you’ve already ruined your credit by defaulting on the second, why don’t you also go the short sale route? Or why not default on both the first and the second and await foreclosure? It could come anyway and you’re still making the larger mortgage payment.

    If you want to keep the condo for some reason you need to talk with a HUD certified counselor ASAP. It may already be too late but you can find out if you have an option. If you don’t want to keep the condo you should notify your lender and either go quickly for a short sale (in which case Wells Fargo may indeed forgive the second) or stop payments and wait for foreclosure.

    Good Luck!

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.