Does Wells Fargo usually deny loan modification?

I have just been informed by wells fargo that my loan mod has been denied by the investor because the loan is less than 12 months old. I have been in the house for over 4 years, and have refinanced twice, once to go from an ARM to a fixed, and the last time in August 09 to drop my interest from 6% to 5%. Is there any appeal process directly to the investor that I can do? I really want to keep the house....Todd

I don't think a lender would approve your loan modification so after you've refinanced the loan. Though you were staying in the property for 4 years, the mortgage was refinanced in August, 09. Thus the mortgage is just 3 months old.

I became underemployed from the oil & gas industry, which is beyond my control. I feel since the Obama admistration is responsible for this, I should qualify for help. I lost lots of money when Enron collapsed, and thought real estate was a better investment for my future. I guess there are thieves in real estate too. I'm closing all my Wells fargo Accounts and moving to another bank. I will never do business with them again.

I received a letter from Wells Fargo saying the turned down our request for a payment modification due to the fact I misplaced one of my recent pay stubs.
I first applied in February 2009. I have since then had to follow up with Wells Fargo. They haven't contacted me or sent me any letters. I had to make all the attempts for help. I did what they asked. I sent in my unemployment paystub and my wife's paystubs, hardship letter, financial worksheet MONTHLY.
We finally heard from them a few months ago saying they would reduce our mortgage from $1071 to $968 for 3 months. We thought that much but was better than nothing. I made my 1st of the 3 payments last month. Going back to being denied help, when I called them, she explained that we could reapply for loan modification. She said we may qualify for a 50% reduction for 3 months. She called it a balloon payment. After the 3 payment, I would have to pay my 4th regular payment and 150% more to get caught back up. I was shocked! I asked her out of curiosity, how did my account stand? She stated that my account was 45 day past due. I said what about the payment I had just made last month on their agreed amount of the discounted payment? She said she showed the payment was received on time. I asked the why did it show me 45 past due? She stated that being that I paid the full amount even though I was told to pay that discount amount that I would show past due until I caught up and paid the entire discounted amount back to them.
I believe what I was hearing. She told me that all the GOVERNMENT programs were set up this way. That the customer would show past due.
Does anyone know some more detailed information?
Thanks!!

Unfortunately the banks are reporting people's credit reports anywhere from 30-45 days late when paying a trial amount, less than your agreed upon mortgage. My understanding is this stops when a final modification is put through, but in the meantime, they kill your credit.
Our credit has gone down 175 points - after contacting WF with our income reduction hardship while keep our payments current for six months until we finally could not do it anymore. We were 60 days behind before they would consider us for a trial amount (prior to qualifying for a modification), now on 3 months of reduced payments but getting reported every month; even though we pay the trial amount on time. We never even received a notice of default or been set up for foreclosure and our credit has gone 175 points. When the trial is over, we are probably looking at credit scores in the 500's when we were previously over 800.
It's a shame but I have to think the country will have to deal with the low credit score crisis at some point if they want to see a real recovery. (Also, so much for notifying the bank ahead of time when you see a problem. They don't listen until they have a problem - which is when their money is not coming in.)
Good luck!!!

I also tried for a loan modification from WF, but after sending information 3 times and taliking to countless numbers of WF employees, we got turned down. We supposedly got turned down because we 'make too much'...yeah, right. We bought in 2006 and the comps in the area are 300K below what we paid, but that is how it goes. Luckly we both have jobs and can barely make it, but are expecting our 2nd and 3rd baby in April. Trying to look forward, we know that our costs will increase greatly and we will most likely lose our house at that time. but they really didn't care about the hardship, just said try to reapply when the boys come.. I am sure I will have plenty of spare time on my hands come April. I ma thinking of trying a short sale or forclose before April. Help.

Hi Jaybird,

It is the lender's discretion whether or not he would consider your request for a loan modification. Depending upon your financial situation, you may or may not get a modification. I would suggest you to try and negotiate with your lender once again. If the lender does not agree to your offer, then you should reapply again in the month of April.

If nothing works out, then you would have to sell off the property. You can apply for a deed in lieu of foreclosure rather than letting the lender foreclose the property. You will not be liable for the deficient amount if the lender accepts your request.

Thanks

I appreciate the advice. A deed in lieu of forclosure seems too easy. Are there downsides other than losing the house (downpayment and etc...)? Credit rating? Others?

Hi jaybird!

Welcome to forums!

A deed in lieu of foreclosure would definitely affect your credit score. It would lower your credit score by 250 points. Moreover, it would remain on your credit report for the next 7 years as any other negative item. Also, after a deed in lieu of foreclosure, you won't be able to apply for a mortgage immediately. You'll have to wait for at least 3-4 years in order to get a mortgage.

Feel free to ask if you've further queries.

Sussane

Thanks smithsussane! Devil is in the details. What are the negative affects of a short sale? How does one work? I think I understand one, but again the devil is in the details.

Thanks

Hi jaybird,

Short sale is similar to deed in lieu of foreclosure. You'll have to surrender the property and the lender would sell it off in a short sale auction. Your credit score would get reduced by 80-100 points and you would be responsible for the deficient amount resulting from the sale of the property.

Thanks

I am in need of guidance and help. We were not one of the many people that bought a home that we couldn't afford or someone who agreed to an interest only loan. However, we are one of the many families hurting during this recession.

In January, my husband's hours were cut (he is a Longshore Foreman at the ports). In February 2009, we applied for a loan modification with ASC. We were told that if we were current they wouldn't even look at our file. Therefore we went passed due and they accepted the file. In June 2009, they entered us into a forebearance program and said they would modify after the 3 payments were made in the forbearance agreement. We completed the payments only to be denied in November 2009. We are now $20,000 delinquent. What can we do to save our home? My husband's hours are picking back up slowly. We WANT to keep our home!!!! We are asking that our interest be dropped and our loan extended. Can we add the delinquent amount to the end of the loan and begin making monthly payments? What can we do?

We have lived in our home for 12 years and have always made our payments on time. This recession is nothing we could have ever expected, but we are doing the best we can and my husband is working to make the monthly payment.

Hi Jen,

Your query has been answered in the given page:
http://www.mortgagefit.com/problems/modification-savehome.html

Please take a look at it. I hope it'll help you.

For help with laon modifications call 800-974-2712

NACA is doing amazing work with people facing foreclosure by intervening and getting interest and principal reduced. If your mortgage company offers a loan modification or forbearance, by the time they tax, title, license and tack on every additional charge known (& unknown) to man, your mortgage payment may (and often does) increase--seriously, what benefit is that if you're already struggling? let me wholeheartedly encourage you to check out NACA.com's home save program-- we're now purchasing a new home through them. sadly, we didn't know this program was available 2 years ago when we went through a pre-foreclosure and were forced to sell our home in a short sale. our lender, wf, was forced to take our phone calls by HUD after we had several near asking price offers to which they did not reply at all for 4 months. my understanding is the banks currently have at least 6-12 months backlog on foreclosure paperwork-- most mortgage lenders offering a loan remod or forbearance are not your friend and they're not your advocate