Posted on: 01st Apr, 2010 12:21 pm
I was just told by Wells Fargo that my loan modification through the HEMP program (which is the government program) was declined because I am at 26% of income and should be at 31%, therefore I should be able to make my payments. They have asked that I fax them the same information in again, and they will try to qualify me for another payment program that they offer, as they have several from what I was told. I was specific about asking about foreclosure, and if I don't qualify will they automatically foreclose. Would they consider putting the accural, which is the difference between what I was paying and the arranged payment, at the end of the loan. I have been going through this for almost a year just to get declined.
Hi ksimmons,
If the lender gives you a loan modification, then the late payments and delinquent amount that you accrue will be added to your principal balance and the term of the loan would be increased. If the property is foreclosed upon, then you'll have to pay off the deficient balance resulting from the sale to the lender. If you don't do so, the lender will charge off the dues and a collection agency will collect it from you.
Thanks
If the lender gives you a loan modification, then the late payments and delinquent amount that you accrue will be added to your principal balance and the term of the loan would be increased. If the property is foreclosed upon, then you'll have to pay off the deficient balance resulting from the sale to the lender. If you don't do so, the lender will charge off the dues and a collection agency will collect it from you.
Thanks