Let me start off by saying I am extremely dumb when it comes to this stuff, so please take it easy on me. I’ve never had anyone to help me with things like this. Long story short, I have a house under my name and my brother’s name (we have the only income in the house), and my parents and siblings live with us. When I entered forbearance with Wells Fargo, my balance was $270,000. Now, I owe $45,000 in missed payments.
I stupidly thought that my options at the end of the forbearance was simply either pay in full or Wells Fargo would just extend the loan to cover the missed payments (this is what I wanted). Looking at the letter I received from them now, the options seem more complicated: https://imgur.com/jf4Z1TE
It sounds like the “loan modification” is what I thought would happen correct? The issue is it says I will need financial documents and that is my worry. I started a business which is now going slow, and my tax returns for last year do not show a good profit, and my brother has been unemployed since he got laid off due to COVID.
I just want to get a better understanding on the loan modification thing I mentioned above….if it’s even possible for me to do before I give Wells Fargo a call and say something I will regret. Does anyone know what this entails and if it’s even going to be possible to do if my brother isn’t even working anymore and my income is very slow this year?
One important thing to mention is I plan to sell the house by summer of 2022. I know another option is to pay the missed payments once I sell the house, but $45,0000 is such a large amount. I really thought I could just extend the loan and have my balance remain the same, without a hassle.