My question involves real estate located in the State of: Colorado. We purchased a home in Glenwood Springs in August of 2007 and closed a couple weeks after the mortgage market crashed. We called Wells Fargo a couple of times after the crash but were told to go ahead with our closing, that it would be a great investment. We were purchasing with an 80/20 and were really concerned about the value going down. We never saw an appraisal until I finally got a copy a couple of months ago while we were going through a short sale. Wells Fargo first agreed to the short sale and so did Wells Fargo HELOC as long as we agreed to work with their "recovery team" after the closing. We did get two months behind in the HELOC mortgage payment before it closed. Now for my questions.
1. I contacted the "recovery team" the day after closing and they weren't ready for me and told me to call back. I did, five times. I finally got to talk to someone the other day who told me that we should just send a check to them each month for a certain amount. He told me that we would not receive anything in writing, no letter, no bills, and that I would not reference any account number on the check because we have no account with them any longer.
2. We have received three letters in the last two weeks stating that effective the 12th of March they will be foreclosing on our HELOC. The short sale closed on the 21st of January and the HELOC received $5,000 in the short sale. This seems really odd to me that they are still wanting us to pay the missing mortgage payments. I had understood that would be taken care of with the $5,000. The "recovery team" specialist was also confused about us being listed as a foreclosure, but couldn't really give me any information or fix the problem. He also said it shouldn't be listed that way.
I'm not comfortable making payments without any bill, receipt or even an account number. I've never even been informed by Wells Fargo HELOC exactly how much they show we still owe on our HELOC. I don't know what to do. Do we pay it blindly? Do we refuse? He also said something strange to me about listing something on the check like "payment on discharged account". I really don't understand and need some advice.