Hi Jerry,

There is a way to protect your credit prior to defaulting on your mortgage. In fact done property it actually becomes illegal for the lender to report your mortgage payment late. You would want to begin your loan modification with a loan audit. You are looking for particular violations in the loan. Once your loan audit is complete you can do a number of things. You can short sale the property, you can place a demand on the lender for a "contract rescind" you can place demands on the lender for a loan modification for your "predatory" loan, etc.
Here is a website with a free 1 hour video on the subject. If you would like the name and number of the auditor please feel free to contact me and I will put you in contact with them. Good luck!

http://www.ForeclosureOptionsNetwork.com

You are in a similar loan to what I had with National City. I have also tried to negotiate a loan modification for one of my old clients that had his loan with Wells Fargo. I began contactinig National City in January of 2009, and I stopped making my mortgage payments in January and called them every week. The foreclosure process began, I got nowhere on my weekly phone calls. Finally in mid-summer, I contacted the law firm in Baltimore that was assigned my foreclosure. They said I could reinstate my loan by paying all the back payments, interest, penalties, legal fees incurred. I did that immediately, but stated that I still wanted my loan modified to a principal & interest fixed loan. To my great surprise, last week a Federal Express envelop was under my doormat. It contained papers to modify my loan, which I executed, got notarized, and sent them my new monthly principal & interest payment for November 1st. I now have a 4% interest rate for the next 3 years, and the 4th through 26th years I will be at 5.12%. I am overjoyed. I do not know what triggered the action by the mortgage holder, but something caused it! I had a 3 year interest only mortgage which I took out in February of 2006, because I was planning to sell my house within a few months and the "interest only" seemed like a good idea at that time. Then I changed my mind and decided I wanted to keep the house. I might note that you do have the option of paying down your principal if you have extra cash -- but that is usuallly not the case with these difficult economic times. If I can assist you in any way, please give me a call.

Jerry, I have been successfully originating loan modifications in MD for a while now. There are several things you need to be aware of. First, the State of Maryland is one of those especially hard hit areas and many people that I am working with are underwater in their homes by six-figures. Unfortunately, this means that many predators are targeting desperate homeowners in your area. The main thing to keep in mind is that it is illegal in Maryland to collect any up-front fee for a loan modification. So, if you are solicited by someone who wants to "help" you with your mortgage for a fee up-front, they are breaking the law and are likely an illegitimate company. I have spoken with countless people in your area that have paid as much as $2500 to companies that do not exist, did not help them with their mortgage and are now long gone with the borrower even more in trouble because they turned mortgage money over to a crook. There are many legitimate companies out there. My experience is you are better off hiring a professional then trying to go at it alone. (Similar to taxes, court, plumbing and modern day cars!) An experienced company will start by collecting financial information on you, asking questions about what led to your circumstances and ordering an appraisal on your home to illustrate to your lender how they stand in your property. Start by checking out a company with the Better Businee Bureau http://(www.BBB.org), my company has an A rating and there are many other great companies out there too. As far as your other questions, payments are not reported late to a credit bureau until they are 30+ days behind. As far as putting pressure on Wells, I must repeat, "Hire a Professional." Reputable companies have negotiators and staff attorneys that know this stuff and can get the right people on the phone and say the right things.

Hi Jerry,

I am a Mortgage Broker and may be able to help with your situation. It would be better if we spoke on the phone. I can be reached at 301-651-7788. Please call me tomorrow so we can see what we can do to help you out.

Thanks,

David