I have a newly refinanced mortgage of $330,300.00 at 4.125%; It was previously with GMAC and now with a company I’ve never heard of before – OCWEN (for about a month it was with Green Tree – I guess both OCWEN and Green Tree took over from bankrupted GMAC).
I have a second Mortgage – Home Line of Credit with Wells Fargo with current balance of $79,596. Rate is at prime minus 1/8th with floor of 4.24% – which is what I have been paying.
I had a bankruptcy in 2010 (your advice helped a lot through the process – thank you very much) and the Wells Fargo line of credit was reaffirmed. (I also declared I wanted to reaffirm the first mortgage with GMAC but they provided no documents to sign off on).
On the Wells Fargo line of credit (which has been frozen since the bankruptcy) I have been paying interest only for the longest time since I couldn’t absolutely afford any more; it has been +/- $285.00/month.
My house market value is +/-$335,000.00, maybe just slightly above 1st mortgage.
I want to see if it would make sense to try to negotiate a settlement with Wells Fargo’s 2nd mortgage (line of credit); I’m struggling to just make the interest payments and making no dents whatsoever in that debt. I can’t see when I will ever be able to start paying any more and it seems just like a black hopeless hole…
I read some questions on the site from people with similar situation but, then again, each situation is different. I was hoping you could please advise how I should proceed; does it make sense to contact Wells Fargo and what the best approach to try and give myself a best chance to reach a settlement with them.
Thank you for your help,
The AnswerIf you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free. Would it Make Sense to Try and Negotiate With Wells Fargo on My Home Equity Line of Credit? - Jessy by Steve Rhode