Posted on: 14th Jan, 2008 05:21 am
Wells Fargo denied our loan modification. When I called them they took information AGAIN to do a loan modification. Is this something they typically do, deny you the first time?
Hi jane,
You can definitely reapply for a loan modification. You should explain your financial situation clearly to the lender with the help of a hardship letter. The lender will judge your situation on the basis of the hardship letter and decide whether or not he would grant you a modification.
I don't think walking away from the property would be a good option. The lender will foreclose the property if you do so. This will badly effect your credit and you would also be responsible for the deficient amount. In case the lender does not agree to a mortgage modification, you can apply for a deed in lieu foreclosure and check out if the lender agrees to it. In this case, though your credit will be badly effected, you will not be responsible for the deficient amount.
Thanks
You can definitely reapply for a loan modification. You should explain your financial situation clearly to the lender with the help of a hardship letter. The lender will judge your situation on the basis of the hardship letter and decide whether or not he would grant you a modification.
I don't think walking away from the property would be a good option. The lender will foreclose the property if you do so. This will badly effect your credit and you would also be responsible for the deficient amount. In case the lender does not agree to a mortgage modification, you can apply for a deed in lieu foreclosure and check out if the lender agrees to it. In this case, though your credit will be badly effected, you will not be responsible for the deficient amount.
Thanks
We just had the exact same experience with Wells Fargo as the earlier poster. We have a condo we purchased as an investment property here in Norther Florida, haven't been able to get a tenant in over 6 months, and the appraised value of the property has plummeted. Interest only loan, soon to convert, so WF recommended we apply for their mod program. What a joke...we are current also....trying to save our credit. Jumped thru all their hoops, waited 5 mo.s for an answers...and of course denied!! Rep stated we don't qualify....our debt ratio is too high. Well DUH, that's why we're in this mess!! Too high because we can't find a tenant to cover the CURRENT mortgage, if loan was modified, lower payment equals us being able to charge less rent. This government systems is a joke, I guarantee you it was never set up to help people who are honesly trying to do the right thing...we are now seeking legal counsel and moving forward with next step....obviously short sale of forclosure. Hope Wells Fargo enjoys having yet another condo in FlA worth nothing on their books!! At least we tried.....
Hi jillndoug!
Welcome to forums!
Thanks for sharing your experience. A large number of people have similar complaints about Wells Fargo. Did you try for the Home Affordable Loan Modification Program introduced by the Obama government?
Sussane
Welcome to forums!
Thanks for sharing your experience. A large number of people have similar complaints about Wells Fargo. Did you try for the Home Affordable Loan Modification Program introduced by the Obama government?
Sussane
okay, here is my story....Wells Fargo of course!
My husband got cut to part time work and then laid off and we could not make the payments anymore. We applied for the loan mod and I had just sent the last "trial" payment when I get a letter saying thank you for canceling your loan mod....of course I freaked out! When I called they told me they didn't receive the payment that was due on the 1st of July until the 13th of July. I told them that i sent it on the 26th of June and they said sorry. When I asked what I could do, they said reapply.
Here in lies the problem...my husband has gone back to work full time but in 2 weeks time he will have to take mandatory time off(about 48 hours a month). Also when i checked to see when the check was cashed, it was stamped on the 7th so they had to have received it before then. Also on my WF mortgage account, it said that funds were applied on the 9th.
I'm not sure that we would still qualify but they have given us until the 25th of August and I am really worried. Our house is now worth 40,000 less than our loan so worth about 180,000.
Should i call the customer service # and ask to speak to a supervisor and ask for an exception or to look at the date on the envelope I sent in? They didn't give me an option to pay on line or by phone in the packet they sent. They sent pre addressed pre paid envelopes that I had to send in.
Please help, I am desperate to keep our house.
My husband got cut to part time work and then laid off and we could not make the payments anymore. We applied for the loan mod and I had just sent the last "trial" payment when I get a letter saying thank you for canceling your loan mod....of course I freaked out! When I called they told me they didn't receive the payment that was due on the 1st of July until the 13th of July. I told them that i sent it on the 26th of June and they said sorry. When I asked what I could do, they said reapply.
Here in lies the problem...my husband has gone back to work full time but in 2 weeks time he will have to take mandatory time off(about 48 hours a month). Also when i checked to see when the check was cashed, it was stamped on the 7th so they had to have received it before then. Also on my WF mortgage account, it said that funds were applied on the 9th.
I'm not sure that we would still qualify but they have given us until the 25th of August and I am really worried. Our house is now worth 40,000 less than our loan so worth about 180,000.
Should i call the customer service # and ask to speak to a supervisor and ask for an exception or to look at the date on the envelope I sent in? They didn't give me an option to pay on line or by phone in the packet they sent. They sent pre addressed pre paid envelopes that I had to send in.
Please help, I am desperate to keep our house.
Yes I would recommend calling a supervisor. However, from my experience...Wells Fargo is not that flexible. I know a lot of people who tried a loan mod with them.....fruitless efforts.
After 8 months of trying, I just called WF and was told we are pre-approved for their modification program; the details and terms should be coming in the mail in the next few days.
I should be thrilled but I'm confused. The only thing the rep could tell me is that I have a three month trial period, where I need to make my payments (the same amount as before), to qualify and confirm I can afford the modification??? I don't understand. Why are the payments the same??? How is this a modification? Can anyone shed some light??? I'm baffled.
I should be thrilled but I'm confused. The only thing the rep could tell me is that I have a three month trial period, where I need to make my payments (the same amount as before), to qualify and confirm I can afford the modification??? I don't understand. Why are the payments the same??? How is this a modification? Can anyone shed some light??? I'm baffled.
Hi colammy!
Welcome to forums!
The lender has requested you for a trial payment of 3 months in order to check whether you would be able to pay off the mortgage dues after your loan has been modified or not. If you make regular payments, then the lender would finally approve your modification and give you a new payment plan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The lender has requested you for a trial payment of 3 months in order to check whether you would be able to pay off the mortgage dues after your loan has been modified or not. If you make regular payments, then the lender would finally approve your modification and give you a new payment plan.
Feel free to ask if you've further queries.
Sussane
Hi Sussane,
If I can make the regular payment for three months, why would they lower the payment in the end? Doesn't that just prove I can make the payment??? It's a little crazy. We sent them a letter today, telling them we have been working on this mod for eight months, have missed only one payment in that time, and do not feel that sinking yet another 14k into the house without a final workout solution in place is in our best interest. The house is worth a hundred thousand (plus) less than what we owe. Yes, we stand to lose our house, but WF stands to lose hundreds of thousands of dollars if we can't together come up with a solution.
Our payment is 55% of our gross income, I have proposed a payment solution that is 31% of our net, which can be achieved at 3% (1% higher than Obama's plan), amortized over 30 years. This is solution that should would achieve a long term solution.
We have been working with WF for 8 months, I see this trial as yet another 90 day stall. What mortgage dues? The 3 month forebearance is ridiculous considering our high credit scores and flawless payment history (up till last month). Meanwhile, while we have patiently been waiting for a fair solution, we have exhausted most of our savings and watched our credit cards rise to shockingly high amounts.
To continue down this road and accept this solution can not be in our best interest. If we were 90 day delinquent the forebearance would be justified, nonetheless, the forebearance should be derived from a number close what we would expect to see at the end of the modification.
Please, let me know if I am not seeing things clearly. I don't understand what mortgage dues are but I do know that I have gained nothing by making another three month commitment to make payments I couldn't afford in January.
I need some very sound advice. Any suggestions on how to proceed?
Grateful for this website,
Colammy
If I can make the regular payment for three months, why would they lower the payment in the end? Doesn't that just prove I can make the payment??? It's a little crazy. We sent them a letter today, telling them we have been working on this mod for eight months, have missed only one payment in that time, and do not feel that sinking yet another 14k into the house without a final workout solution in place is in our best interest. The house is worth a hundred thousand (plus) less than what we owe. Yes, we stand to lose our house, but WF stands to lose hundreds of thousands of dollars if we can't together come up with a solution.
Our payment is 55% of our gross income, I have proposed a payment solution that is 31% of our net, which can be achieved at 3% (1% higher than Obama's plan), amortized over 30 years. This is solution that should would achieve a long term solution.
We have been working with WF for 8 months, I see this trial as yet another 90 day stall. What mortgage dues? The 3 month forebearance is ridiculous considering our high credit scores and flawless payment history (up till last month). Meanwhile, while we have patiently been waiting for a fair solution, we have exhausted most of our savings and watched our credit cards rise to shockingly high amounts.
To continue down this road and accept this solution can not be in our best interest. If we were 90 day delinquent the forebearance would be justified, nonetheless, the forebearance should be derived from a number close what we would expect to see at the end of the modification.
Please, let me know if I am not seeing things clearly. I don't understand what mortgage dues are but I do know that I have gained nothing by making another three month commitment to make payments I couldn't afford in January.
I need some very sound advice. Any suggestions on how to proceed?
Grateful for this website,
Colammy
Hey colammy,
As Sussane has said, the lender wants to judge whether you would be able to pay the dues once your modification is approved. This is a trial period and if you remain current on your payments, the lender would agree to a modification. If you feel that the trial plan which is given to you is not justified, then you have the right to reject it. In such a situation, you can apply for a deed in lieu of foreclosure and sell off the property. However, this would badly effect your credit score and lower it by 250 points.
As Sussane has said, the lender wants to judge whether you would be able to pay the dues once your modification is approved. This is a trial period and if you remain current on your payments, the lender would agree to a modification. If you feel that the trial plan which is given to you is not justified, then you have the right to reject it. In such a situation, you can apply for a deed in lieu of foreclosure and sell off the property. However, this would badly effect your credit score and lower it by 250 points.
I'm sorry, I am feeling like I must be horribly ignorant but the payment is the same amount as my original loan. I requested the modification because my current loan is no longer affordable. I am only one month behind, what dues??? How does me continuing to pay the amount I can't afford prove that I am worthy of a modification?
I will not apply for a deed in lieu and just give them back the house. I have offered solutions and will hold off payments if I have to until they either work with me or go through the expensive and lengthy process of kicking me out. As I see it, my stellar credit 800+ score is screwed either way, why give them a "deed in lieu of foreclosure".
Am I really missing the ball people? 3 more months at the same payment is yet another 14k, am I suppose to think they are actually going to lower my payments after giving them yet another 14k? Isn't the forebearance suppose to be a lower, more affordable number that we can all work with in the future??? (Remember, I am only 30 days delinquent.)
I will not apply for a deed in lieu and just give them back the house. I have offered solutions and will hold off payments if I have to until they either work with me or go through the expensive and lengthy process of kicking me out. As I see it, my stellar credit 800+ score is screwed either way, why give them a "deed in lieu of foreclosure".
Am I really missing the ball people? 3 more months at the same payment is yet another 14k, am I suppose to think they are actually going to lower my payments after giving them yet another 14k? Isn't the forebearance suppose to be a lower, more affordable number that we can all work with in the future??? (Remember, I am only 30 days delinquent.)
I spoke to 5 different reps today, 4 of which assured me that the difference between the old payment, and the forbearance payment, is the forbearance includes principal (my original payment was interest only). When I asked how much goes towards principal, none of them could tell me. Finally I got passed on to the 5th rep, that simply said, the forbearance will be applied exactly like my original payments, after which they will put the one payment I missed on the back of my loan and resume business as usual. No intentions of modifying at the end.
So much for the 3 month Forbearance!
I am considering hiring an attorney, also considering holding off any paying them any more until they feel the pinch. Just hope and pray that in doing so, they will come back to the table with a better offer in mind.
It is so frustrating and when this is over (however the outcome) I will not consider Wells Fargo again in the future.
So much for the 3 month Forbearance!
I am considering hiring an attorney, also considering holding off any paying them any more until they feel the pinch. Just hope and pray that in doing so, they will come back to the table with a better offer in mind.
It is so frustrating and when this is over (however the outcome) I will not consider Wells Fargo again in the future.
Hi colammy,
I can understand that you are quite frustrated with your lender. If you do not sort out the issue with the lender, the lender may simply foreclose the property which would badly affect your credit. You can definitely hire a loan modification expert or an attorney who would be able to negotiate with your lender regarding the payments. Wish you all the best!
Thanks
I can understand that you are quite frustrated with your lender. If you do not sort out the issue with the lender, the lender may simply foreclose the property which would badly affect your credit. You can definitely hire a loan modification expert or an attorney who would be able to negotiate with your lender regarding the payments. Wish you all the best!
Thanks
Jameshogg,
Thank you for your sincere concern. We have always had pristine 800+ credit rating, so this will be new territory. Our credit can recover in 5 years.... most likely our house will not in five years. It will take the bank months to foreclose not to mention the added expense. Hopefully they will come up with a reasonable solution before, if not, we will eventually lose anyway. Too bad.
Thank you for your sincere concern. We have always had pristine 800+ credit rating, so this will be new territory. Our credit can recover in 5 years.... most likely our house will not in five years. It will take the bank months to foreclose not to mention the added expense. Hopefully they will come up with a reasonable solution before, if not, we will eventually lose anyway. Too bad.
Here is my story on this mortgage thing.. We filed bankruptcy a year ago, were doing ok, but husband got laid off. We included the house in the bankruptcy, we continued to make payments, so we could keep our house. Our house is now worth about $50,000 less than we owe. Refi is out of the question, loan mod sounds like a joke. We are still current on our payments, but not for very much longer. Should we just walk, it can't hurt our credit as we have none, or wait it out and see if Wells will help us?
Webbie,
My sister lost her job, went a few months without payments, then hired a loan mod. company, waited a few months for them....before you know it, she went a year, without payments, and had her mortgage payment cut by thirty percent. (Now the year of no payments and fees are on the back of the loan, so eventually it will have to get repaid.)
I'm not an expert, but if you can't afford the payments, I would hire a reliable modification company, and see if they can help; in that time, I would stop making payments and start putting those payments into a savings, just in case. (I wish I would have done this back in January; live and learn.)
My sister lost her job, went a few months without payments, then hired a loan mod. company, waited a few months for them....before you know it, she went a year, without payments, and had her mortgage payment cut by thirty percent. (Now the year of no payments and fees are on the back of the loan, so eventually it will have to get repaid.)
I'm not an expert, but if you can't afford the payments, I would hire a reliable modification company, and see if they can help; in that time, I would stop making payments and start putting those payments into a savings, just in case. (I wish I would have done this back in January; live and learn.)