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Mod Denied, Now What?

Posted on: 23rd May, 2010 05:17 pm
I started trying to work with Wells Fargo about a year and a half ago on a loan mod. We agreed to a payment amount and they told me that if I made one payment late within the 90 day trial period, negotiations were off and the payment would go back to the old amount. After a year and a half of calling, faxing paperwork over every 30 days, and making my agreed upon payments on time as they requested, they sent me a letter stating that because I was not behind on my mortgage, they wouldn't mod my loan. I cannot afford the original rate as I have come into some medical bills and other financial hard times (losing my partner). What are my first steps? Should I get an attorney? I would like to keep the home, but it is worth a lot less than what I paid for it and can no longer afford it like I could when I first purchased it.
If you have been working on this for a year and a half, it does not sound like you are being evaluated under the federal HAMP guidelines, which Wells is obliged to follow. Borrowers are still eligible for modification if their mortgage payments are current, the possibility of imminent hardship is a factor, and we have been able to help homeowners obtain their modifications even when the mortgage payments are current.

It's true that, during the initial 90 day trail period, if a payment is missed ( it can be late ), then a borrower may no longer be eligible for the modification. The first thing to do is determine if you are actually qualified for the loan modification. You an go to "www.hampmod.org" to find out additional information about loan modification under the federal guidelines, and determine if you are eligible for the loan modification.

[Link deactivated as per forum rules. Thanks.]
Posted on: 23rd May, 2010 07:38 pm
Welcome gypsycookie,

You will have to negotiate with your lender for a loan modification. You can take the help of an attorney in order to negotiate with the lender. If your lender accepts your request, you will be able to save your property.
Posted on: 23rd May, 2010 09:46 pm
hi gypsycookie

Consulting with an attorney is one part and fighting a battle against fargo is different story alltogether.As you need to consider the attorney's fees as well as time which may not be returned as you have already invested 1.5 yrs in this case.
you need to give a though about economic viability of this decision.
keep in touch..
:arrow: :arrow: :arrow:
Posted on: 24th May, 2010 09:28 am
I was denied a loan mod by Wells Fargo a year ago too so I decided to short sale. It was free, I stayed in my home during the process and I will be ready to buy again next year....basically the same house...at half the price. I got over $300k of debt morgage cancelled!!! Im so glad I did it. In hindsight I really dont know why even try for a loan mod since the house would not be worth what I owed for many years..in my opinion the short sale is really a better way to go
Posted on: 10th Jun, 2010 12:51 pm
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