Legal Question in Real Estate Law in California

I maybe in need of an attorney that can file suit against Wells Fargo/ Wachovia/ World Savings Bank.

In 2009 my husband and I did a modification and we were told that we were going to get a reduction in principal of $60,000 and that our loan was going to go to a 40 yr.

Anyway, I am trying to refinance now and I have been told by 2 different loan companies that the loan we currently have is a 44 yr loan. So, doing some simply math, payment for the last 4 years equals close to $62,000.

What I need is someone that can look at this 2 page modification and tell me whether Wells Fargo is messing with us or if the loan agents are wrong.

Speaking of modifications, we have not been able to qualify for another one because we don't have enough debt. We don't live out of our means. We have no debt because we can't afford to get into debt. Yes, we want a new car and a few other essentials, but we choose not to put ourselves in a position where we have to decide if we eat or not for the rest of our lives.

Well, enough ranting. Can someone please help! Thank you in advance!


Asked on 5/01/14, 4:03 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The differences between a 40-year and a 44-year loan at a given interest rate are pretty small, and if you got 44 years to pay off but are being charged the same interest rate the lender would have used for a true 40-year loan, you are arguably better off, especially if you can prepay at any time. Your analysis leading to a conclusion that you'll be paying close to $62,000 more is probably done using oversimplified and incorrect assumptions or methods.

To do an analysis, you need a mathematician, not a lawyer. However, in addition to having a law degree, I have an engineering degree and an MBA, and I'd be willing to do a financial analysis of your loan. Just send all the financial numbers (initial principal, payment size, stated interest rate, and balloon payments or interest adjustments, etc.) to me at [email protected].

Also, I think that in looking for a further modification, you may be barking up the wrong tree. Why not refinance rather than modify? Refinance lenders will be looking for minimal debts (and a good credit rating and sufficient equity), not excessive indebtedness.

Read more
Answered on 5/01/14, 5:02 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California