Posted on: 06th May, 2009 08:35 am
I submitted the required home modification documentation to Wells Fargo on April 14th. They sent a temporary finnancial hardship letter - offering us a payment of $700 less per month for 6 months. After 6 months we are to call back and give them our financials. If we are not offered a loan modification at that time we have to pay back $6,900. I have spoke with Loss Litigation several times - every time I get a new person with a different answer. One told me they were scanning our file for possible loan modification, another person said this information is incorrect. Another said their negotiator came up with this reduced payment plan - I know this didn't make it to a negotiator - a Loss Litigation person which turned out to be someone in the collections dept talked to me about this plan. My husband is self employed and his income is down 38%. We paid $410,000 for our house in November 2007 - a model match sold on the next block last week - $279,000. What should I do - their offer is only a temporary fix and we won't be able to pay back $6,900. We have never been late on our payments.
Hi jewels!
Welcome to forums!
Did you contact your lender after making the third trial payment and asked about the HAMP? If not, then I would suggest you to contact your lender immediately and check out whether or not they would be offering you this program. You should ask them to speed up the process.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Did you contact your lender after making the third trial payment and asked about the HAMP? If not, then I would suggest you to contact your lender immediately and check out whether or not they would be offering you this program. You should ask them to speed up the process.
Feel free to ask if you've further queries.
Sussane
I want to let people know we were finally approved for the Hamp program in Dec. after 10 mos. of waiting. We sent our check in with our notorized paperwork made our second payment and was told that our paperwork is now null and void because of an error. We are now trying to figure out what to do now. They sent us new paperwork. It is nothing like what we were approved for. They said we are 7 payments behind (which we are not) and have to start again. Any ideas????
Welcome tyalidan,
In this situation, you will have to contact your lender and clarify the whole issue. This will help you in knowing as to why they are claiming that you are 7 months late on your mortgage payments. If the lender requires you to sign new documents, then you will have to do so.
In this situation, you will have to contact your lender and clarify the whole issue. This will help you in knowing as to why they are claiming that you are 7 months late on your mortgage payments. If the lender requires you to sign new documents, then you will have to do so.
I have been reading the posts listed on this site, and would like to offer some advice to anyone reading this hoping for help. I am a loan mod negotiator for a large lender and process anywhere from 50 to 100 mods per month. I have been doing this for the last two years.
First of all, if you are good enough with numbers to figure out your own income, list all your own expenses (basically do a monthly budget), and determine just how bad your situation is, you should NOT pay any 3rd party to help you, not even an attorney. A lot of the 3rd parties out there are trying to scam you, and they will stop returning your calls the minute they get your money. If you can't balance your checkbook and don't have a clue what you spend on a monthly basis, you might benefit from a 3rd party's help, but DO NOT pay them up front. In some states it has become illegal for 3rd parties to collect anything up front.
Second, while the HAMP modification program is a good thing in theory, there is so much red tape (being that it's a government program) that it can be difficult to qualify. Not only do you have to fit in the box as far as loan amount, occupancy, debt ratio, etc., you need to be able to send in the documentation EXACTLY the way the HAMP program dictates. If you forget to send a page of your bank statement or check the wrong box on the 4506T form, the lender can deny your request. AND THEY WILL BECAUSE THEY KNOW THE GOVERNMENT WILL NOT PAY THEM FOR DOING THE MOD IF THEY CAN FIND A VALID REASON NOT TO. If you do apply for the HAMP program, make sure you send everything listed on the checklist, and double/triple check to make sure you haven't left anything out.
Third, when your lender offers you a loan mod with a start rate of 2%, don't complain because it's going to eventually go up to 5%, or that there might be a balloon due at the end of the term. Many lenders are simply servicing a loan for an investor that purchased it in a pool with 1000 other loans, and they have to adhere to that investor's guidelines. So they aren't going to fix you at 2% or lower the principle balance down to what the property is worth. It just doesn't work that way.
Hope this has been helpful, and I hope for anyone out there who truly needs help and is not just gaming the system that you get an outstanding modification from your bank.
Good luck.
First of all, if you are good enough with numbers to figure out your own income, list all your own expenses (basically do a monthly budget), and determine just how bad your situation is, you should NOT pay any 3rd party to help you, not even an attorney. A lot of the 3rd parties out there are trying to scam you, and they will stop returning your calls the minute they get your money. If you can't balance your checkbook and don't have a clue what you spend on a monthly basis, you might benefit from a 3rd party's help, but DO NOT pay them up front. In some states it has become illegal for 3rd parties to collect anything up front.
Second, while the HAMP modification program is a good thing in theory, there is so much red tape (being that it's a government program) that it can be difficult to qualify. Not only do you have to fit in the box as far as loan amount, occupancy, debt ratio, etc., you need to be able to send in the documentation EXACTLY the way the HAMP program dictates. If you forget to send a page of your bank statement or check the wrong box on the 4506T form, the lender can deny your request. AND THEY WILL BECAUSE THEY KNOW THE GOVERNMENT WILL NOT PAY THEM FOR DOING THE MOD IF THEY CAN FIND A VALID REASON NOT TO. If you do apply for the HAMP program, make sure you send everything listed on the checklist, and double/triple check to make sure you haven't left anything out.
Third, when your lender offers you a loan mod with a start rate of 2%, don't complain because it's going to eventually go up to 5%, or that there might be a balloon due at the end of the term. Many lenders are simply servicing a loan for an investor that purchased it in a pool with 1000 other loans, and they have to adhere to that investor's guidelines. So they aren't going to fix you at 2% or lower the principle balance down to what the property is worth. It just doesn't work that way.
Hope this has been helpful, and I hope for anyone out there who truly needs help and is not just gaming the system that you get an outstanding modification from your bank.
Good luck.
Did anyone contact the banking comissioner?
I went through the Loan Modification process for one year. My wife and I just about threw in the towel until I recieved a letter for the Wells Fargo Home Preservation Workshop. ANYONE that is attempting to modify loan via HAMP or secondary means should attend. We FINALLY recieved the results we wanted. Deal was performed on the spot. No lawyers required. All the BS dealing with a year of phone calls attempting to modify my loan was performed within 5 hours of working directly with Wells Fargo representatives, negotiators and Freddie Mac. Amazingly, once my loan modification was approved, we recieved a congratulations from an Freddie Mac senior reprentative! This workshop will save you lots of aggravation and get you the results you need. HIGHLY RECOMMENDED!! I wish this workshop was available 1 year ago when I started the process. Again it is called the HOME PRESERVATION WORKSHOP.
Who regulates Wells Fargo? Our second attempt for a loan modification started over 90 days ago and it is still not to a negotiator. We were told not to make payments while we were requesting the modification, but now they have started foreclosure proceedings. Every phone call reveals a different story. Any ideas to expedite this process...we don't have another 30-60 days.
READ YOUR DOCUMENTS. READ EVERY BIT OF IT! STOP BLAMING WF BECAUSE YOU CAN NOT PAY YOUR MORTGAGE! But.. If you really could not in all actuality.. you would receive assistance. These modifications are government regulated. You qualify based on YOUR financial status. The only reason you would not get a modification is if you can make your mortgage payment. It may be a little more difficult that you would like. But face it! Welcome to the real world! On top of that most who as for modification do not in fact deserve it. WFHM puts all of the information in the initial documentation that you fill out and sighn! YES YOU SIGNED UP FOR THIS! Its not WF's fault if you didnt read it and know what you were getting yourself into. If your in this position.. for some reason you should be. Everything happens for a reason. Banks will be sneaky. Life suck and you die... GET USED TO IT BECUASE IT ISNT CHANGING!
Hey LMR, you have no idea what you're talking about!', I didn''t sign up for a real estate collapse caused by these large insitutions who made billions by creating creative BS products, received billions in bail outs and are now buying loans at 20 cents on the dollar; its called Capitalism! Goldman made derivatives that imploded our values. And now I have to pay a mortgage value, plus an adjustable rate that will equal to 30 times what they bought my loan for. What about the loss share program us taxpayers are stuck with. The bank that underwrote my loan only paid 20% of the original mortgage; the FDIC (you and me) paid the rest and the bank sold the mortgage for another great profit, only to come after us for the deficiency
Why not just do a chapter 13 and allow the courts to restructure your entire debt load ?
wells fargo bank is a "rip off". we applied for modification in june 2009. we never were informed that we were in the running for the obama plan. my husband lost his job in jan. 2009 which made our house payment rather large. we never got any letters from wells fargo for 6 months. then we came into a small inheritance and we asked if we had the money in our savings would make a difference in their decision. they said know. after many calls to them they said we lost the obama plan by one point and tht and that we would automatically go to their modification process. well it is now august of 2010 and now they have sent us a forclosure notice. this is strange since wwe have been making our payments all of this time. this bank doe not wish to help anyone. we are going to refinance and get out of there.
Sorry LMR, I have to agree with LMR Hater. Yes, I signed up for an unaffordable loan three years ago with WF PROMISING they would refinance me in three years before the ARM kicked in. They also dupped me into believing they were including the escrows into the loan, but when we got to closing, oh no...they don't do THAT! Well, look where we are now. They put me on a loan modification last year that expires this month. Even though I still have the very same hardship, they are not even willing to talk to me about making this modification permanent, now I'm expected to pay a balloon payment, also, while they have been racking up the fees. I now owe more on my mortgage that I did three years ago! What a rip-off, and they knew it when they did it.
I started the modification process on March 4, 2009 and since have been put on a trial period that lasted 5 months followed by two moratoriums and today I found out they declined me AGAIN! Now they are saying I need to pay $17000 fast or can short sale. They will not give me a repayment plan for the past due amount nor will they do anything else to help me. If you are considering requesting a modification, DO NOT PAY THE REDUCED PAYMENTS WHEN OFFERED! Continue paying the regular poayment until the modification dpocs or finalized!
Hi there,
Wells fargo loan modification program offer me longer term instead of lower rate (for lower monthly paymonth) such as the loan extends 34 years. Could I ask them lower rate instead of longer term?
Thanks
Wells fargo loan modification program offer me longer term instead of lower rate (for lower monthly paymonth) such as the loan extends 34 years. Could I ask them lower rate instead of longer term?
Thanks
Welcome Doan,
You can contact the lender and ask for a lower rate instead of longer term. However, if your rates are reduced, then naturally the term period to pay off the mortgage will get increased.
You can contact the lender and ask for a lower rate instead of longer term. However, if your rates are reduced, then naturally the term period to pay off the mortgage will get increased.