Not true. State laws reference default when any credit account is 91+ days past due/not paid. Otherwise, after 30 days, any account is referenced as late. There is much more accurate information on forbearance outside of this forum and it is not scary or something to tread lightly. I am in finance and I know regulatory compliance under special programs especially as a result of unemployment. CSRs are your conduit so belittling their role is unwise. Mac or Mae or HUD (FHA) will provide referrals for what is usually free counseling in most communities.
@StartingOver10 wrote:
^^^Agree to the above.
Normally it is not good to dip into retirement, but in this specific type of incident it is the best solution if you are unemployed.
I can tell you personally and professionally that the scores will take more than a dip. I can also tell you that the letter Wells sends you is misleading at best. The more equity you have in the property the quicker they will move to f/c. I have seen it over and over again (I'm a Realtor). What they are saying is that they move the funds you pay into a suspense account (that means the money is not applied to a payment). They let the funds accrue in the suspense account and when you have enough in there to make a payment, then they will apply it in accordance with your amortization schedule. However, what they are not specifying is that the fees that are generated come out first. These fees include late fees and attorney fees and other fees (look at your note to see). Those fees accumulate quickly. There is a huge benefit to the servicer (WF) to do this - they make more money servicing a loan in default than one that is paid on time. The loan is in default once the full payment is not made by 30 days. Check your note.
Don't risk your home and the equity in your home. If you think that you aren't going to get employment soon, then put it on the market right away so you don't erode too much of your retirement funds. If you think the unemployment is short term, then there is no need to put in on the market right away.
(Yes, CSR is customer service rep. Just so you know, the CSR's have no idea of what actually happens in these circumstances. They are reading from a script).
Starting Score: 565