Be Intentional About Life

Wells Fargo Behind two months

Hey everyone,

I am excited to say that I have booked my first client, and I am excited to get moving on their situation. I have started to look at their budget and they make just enough money to cover most of the basics. We do have some room to cut, but not enough. I am going to begin working on them to find some extra income, but they are behind two months on the mortgage with Wells Fargo. She says they are calling everyday, even though nothing is different. What should I be telling them in regards to this matter? I have some ideas, but since I have never dealt with mortgages, I am looking for some experience. Thanks in advance.

Tony Elam
http://findingforwardmotion.com

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Permalink Reply by Jaime Thompson on December 1, 2010 at 12:32pm

Congratulations Tony! Has Wells Fargo offered them a mortgage modification? This might be a good first step until they can get their budget balanced and/or extra income started streaming in. While the paperwork for a mortgage mod usually include contacting HUD, they could try talking to a counselor there as well on their own. The rules are constantly changing, but as of right now they still shouldn't be too threatened by foreclosure if they can stay at 2 months behind and ultimately catch up.

Good luck and keep us posted on how your first client experience goes!
Jaime

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Permalink Reply by Derek Sisterhen on December 1, 2010 at 5:21pm

Hey Tony - high fives on the client! I'm sure you're going to do an awesome job with them!

Jaime hit the nail on the head with the advice on the mortgage. If they can keep from going any further past due (i.e. you've worked out their cash flow so they can cover the mortgage going forward), they'll be just fine. Check out the foreclosure process for your state (there should be a website devoted to it) - most of the time notification doesn't kick in until four months of no payments. In the current environment, though, foreclosure notices aren't really going out until six months; auction dates aren't scheduled until a few months after that; and you have the ability to work out payment arrangements up until the property sells.

It doesn't sound like your clients are heading in this direction, but it helps to know the endgame to formulate a good strategy.

Please do let us know how it pans out!

Derek