Wells Fargo three month forbearance questions?

colammyok · Joined: 12 Aug 2009 Posts: 17 7.02 Dollars($)

Has anyone successfully been through the final review for their loan modification? If so, what is the process? We've been working on this for a year and I don't want any surprises.

We are on a three month trial forbearance, have made two of the three payments (sending the payment "priority mail" just to be sure) and realized that our credit has taken 175 point drop. (We were 60 days late prior to the trial, but apparently our credit is getting hit every month we make the reduced trial payment. Does this get cleared up in the end?

We contacted WF for six months before we were late, sent hardship letter, etc... that we were going to run into trouble - they didn't respond until we were at the end of our rope. We had very high credit in the low 800's that's now in the low 600's. Unbelievable.

jenkin7 · Posted: Thu Oct 22, 2009 11:33 pm Post subject:

Hi colammyok,

Under the forbearance plan, your lender has agreed to partially reduce your monthly mortgage payments. It means you have not been paying the amount that you actually promised to pay when you signed the mortgage agreement. This does affect your credit scores. Moreover, the shortage in your current payments will be adjusted once the forbearance period is over. Then you may have to come up with extra payments to make up for this shortage.

A loan modification could have been a better option as it would have lowered your monthly payments for a longer period of time. Under the modification program, the lender either reduces the interest rate on the loan or extends the term of the loan to lower the monthly payments. But whether it is forbearance or a loan modification, your credit is going to get affected negatively.

Guest

The three month forbearance is the first step towards the loan modification. Wells Fargo insisted on a three month trial before they will commit to a final loan mod. At the end of the three months, they will do a final review and decide on the final payments and terms. This was my only option in getting a loan modification.

With that being said, has anyone been through WF's final review process after the three month trial is over? What was involved? What was the outcome? I would love some sound advise on this matter.

As for the credit score, I would have expected our credit to drop under the circumstances but not by 175 points. This is outrageous. Our report shows a flawless payment history on all accounts until this past summer, and then only our mortgage was been late.

colammyok · Joined: 12 Aug 2009 Posts: 17 7.02 Dollars($)

Still wondering if anyone has made it through Wells Fargo's three month forbearance plan? What happened? Did they approve you for a loan modification after?

Guest

. I began the loan modification process almost a year ago, and unfortunately it has not been favorable. After submitting my initial paperwork I waited, and waited nine months for an answer regarding my loan modification. In November, I was told by your company that while waiting for my modification, I would be put on a loan forbearance plan while I wait for modification approval. Unfamiliar with what a loan forbearance program was, I began to ask your employees questions. I was told that it was a program that “allowed me to pay a portion of my mortgage payment to allow me to get ahead in my finances”. The operator then stated at the end of the forbearance program, I would start to pay my new modified mortgage payment. During the loan forbearance period I was told by a friend that the mortgage company will ask for a lump sum payment at the end of the forbearance program. Knowing that a large lump sum would be a huge hardship, if not an impossibility, I re-contacted ASC and asked if this was true. I spoke with “Scott” an ASC operator and asked if I would be required to pay a large lump sum of money at the end of the forbearance. The operator laughed and said that was absolutely false, and I would 100% NOT be required to make a large lump sum payment when the forbearance period ran out. The operator reaffirmed that at the end of the forbearance program I would just begin to pay my new modified rate. I called again in January and spoke with another operator to check on the status of my modification knowing that my forbearance period was coming to an end. The operator looked up my information and stated it looked as if I was going to get a rate of 2.5% and they were just tying up some loose ends and let me know soon. After hearing this information I was ecstatic, finally my wife and I would have some breathing room and be able to not live paycheck to paycheck.
Yesterday I received a phone call from ASC saying I failed to meet the requirements for a loan modification. I was told that I didn’t meet modification requirements because I did not make enough money. Additionally they stated I needed to pay a lump sum of $8142 or our house would go into foreclosure. I was so upset, the same company that swore up and down that I would “never” be required to make a lump sum payment at the end of my forbearance period was now telling me not only did I need to, but if I didn’t I would lose my home. The irony is, on one hand I am being told that I don’t make enough money to qualify for a modification, and on the other hand I am being told to pay an unattainable $8142 lump sum.

Niicss · Posted: Mon Feb 15, 2010 3:28 am Post subject:

I can understand what you must be going through, TC. I would suggest you to re-negotiate with your lender and check out if you can get a modification. You may even inform the lender that you are facing financial crisis and thus you're unable to pay off the lump sum amount asked by them. May be the lender would consider your situation and negotiate with you.

Guest

I have tried and tried. Like I said this has been going on for over a year now. I'm at wits end, and feel like diving into my retirement to pay the lump sum they are asking for. All the forbearance has done is ruin my credit (a drop of 200 points).

Posted: Tue Feb 16, 2010 12:47 am Post subject:

In that case, it's better to get rid of the property by selling it off. You should apply for a deed in lieu or short sale with your lender and sell off the property.

Guest

I've been going through this now for a year. We were finally able to get a loan modification approved, but only after we complete our 3 month of forebearance payments, then they take another review (I think this is for sanity, b/c they've already approved the modification, they just need the 3 months to prove we can make the payments).

So, we'll see.

Guest

Jenkin7: Wells Fargo will NOT allow you to get a loan modification without a forbearance trial, so we have no choice.

I went through the 3 month "trial by fire". If you agree to forbearance be prepared to be treated like a hobo. Wells Fargo will call and bug you at least once every couple of days at first. After you pay the first reduced payment, Wells Fargo will start calling you every couple of days to remind you that you owe them money. When you pay the second, you'll get reminded daily. If you don't answer the calls - say you're at work and you can't take the call - you will be removed as a candidate for loan modification and will have to apply all over again and your credit will be in the crapper.

At this point, my credit (which was 826) has fallen so low that I might as well allow the house to foreclose. What a joke this loan modification B.S. is. The banks take billions and refuse to work with customers. Wells Fargo can take a flying leap.

Guest

I too was on the 3 month trial and was told it wouldn't affect my credit score because I’m not behind. And beat me down saying regardless of what someone told me they're required to report it that way even if they said they wouldn't because it was a partial payment and if wasn't in the agreement!!

Come to find out I was offered at the same time I was denied because they didn't have my current paperwork their Making Home Affordable Program. It came with a nice packet explaining everything that will happen plus directions said the following under CREDIT REPORTING:

If you are delinquent on your scheduled mortgage payments at the time your trial plan begins, we will continue to report your account to the credit bureaus in a manner that accurately reflects the contractual payment status of your loan. We also will not that you are paying under a partial payment agreement.

If you were current on your scheduled mortgage payment at the time your Trial Period Plan begins (they underlined this portion) "and you have made your trial period payment during the month in which it was due," we will report your account to the credit bureaus as current, with the added comment that you are paying under a partial payment agreement. However, if your Trial Period Plan payment is one month past due, we will report your account to the credit bureaus in a manner that accurately reflects the contractual payment status of your loan, again, noting that you are paying under a partial payment agreement.

I have contacted their Escalations Dept and Credit Bureau Disputes but both back each other up with the same comments, it’s contractual. I say the contract doesn’t state you will be reported as late because another program within your family (loan dept/lost mitigations) outlines what I said someone told me multiple times. I have proof with the MHAP docs that they do say that and every supervisor agrees but they say their hands are tied and I need to go to another person who can’t make a decision. One guy from lost mitigations dept almost called me a lair because I told him what was printed and asked him can he get a copy of the same doc since it’s a published standard! He wouldn't just say it’s not like that. I had one supervisor say I can just stop the process if I want and don’t compete the trial for the MHAP now. I told him I’m not going to until I get an answer that says what’s in writing is correct, this is a double edge sword for them as well because they are not honoring what they put in writing. I had to speak to his supervisor who was very helpful and finally understood what I was trying to say. I was never given the opportunity to exit from the program if I knew they would fuck my credit score from a 768 to a 589!! I told them that your docs clearly outline what will happen if you’re already delinquent vs. not being.... Is this a standard or are the rules different for each department under the home mortgage?? I am currently scheduled to see an attorney while I’m waiting for an answer from their Credit Corrections Dept and I’m sending my packet info to the Washington Post once if I get a negative reply to share with the word all the work I’ve done to try and fix what they so easily destroyed in my life.

pianogirl22 · Joined: 02 Apr 2010 Posts: 2 1.89 Dollars($)

WOW!!! I am so glad Im not alone in this. And honestly for that, I feel that there should be some sort of class action against ASC and Wells Fargo. Heres our story:

My husband lost his job in Aug 2008 in turn made us behind on our mortgage in Dec 2008. We applied 4 times to get a modification but was denied all 4 times. By Aug 2009, he landed another job. We finally hired some outside help in Oct 2009 that at the time SEEMED to get the job done. He got us a special forebearence plan. Heres the thing, our plan was $300 MORE then our mortgage. He told us that was the plan they offered and we had to take it.

So, starting in Dec 2009, we had to pay $2250 for 3 three months then our modification will kick in. We were behind for 1 year, totalling $25,000 (includes late fees). Oh, this is an interest only loan as well.
Heres where it gets REALLY FUN!

We completed the forebearence on time, no problems, no issues. We get a phone call yesterday from ASC that said we DID NOT QUALIFY FOR A MODIFICATION AND OUR MORTGAGE IS IN ACTIVE FORECLOSURE!
We payed an additional month AFTER the forebearance just to keep current and the total amount we gave them was $8600!!

They said our "Investor" does not participate in any gov programs and we make too much money to go back to our original loan and too little money to get into a conventional 30yr fixed. With that said, they are continuing the foreclosure process, we can expect the sale to happen by the end of May.

After we paid them almost 9 GRAND, they tell us SO SORRY! GET OUT! How the hell is this legal!?!?! I comply with all their demands just to get the shaft! So if you have Wells Fargo and have Americas Servicing Company, BEWARE OF THE FOREBEARANCE PLAN!!!

They told us to try to apply for HAMP, it most likely wont work, but it will buy us some time to save money. I cant believe this is happening to us. We have decent income coming in, my husband is employed again and yet there is NOTHING, NOTHING AT ALL ANYONE IS WILLING TO DO TO HELP US! ASC says our investor wont budge and it is what it is. Enjoy the home while you have it.
So yea....I feel the pain of everyone on this thread. Now I have to find another place to live. THANKS WELLS FARGO!

Guest

If someone can find a lawyer to represent us in a class action suit. I'll happily join the crowd.

[Email address deleted as per forum rules. Thanks.]

Guest

I have paid a 3rd party $995 with another $800 due to negotiate this for me. I went thru the makinghomeaffordable.gov and got no where with it. They kept loosing paperwork, i didnt send the right stuff etc. I now have a foreclosure date of May 12. They just sent me paperwork for a forebearance plan for $1800/month for 3 months. My normal mortgage is $11675 but I have not paid in 6 months. I explained to them I may be able to pay 3 payments of $1800 but that is it! I can not afford my normal mortgage payments so how am I supposed to afford $1800. Has anyone gotten a completed approved HAMP with Wells? It seems like we are all just chasing our tails!

Guest

My advice is DO NOT call Well Fargo "loss mitigation" - they will sign you up for the deadly three-month forbearance agreement! It's a scam - plain and simple. Wells Fargo is using HAMP to squeeze pennies out of desperate homeowners without helping them. You will be left with a low credit score and NO loan modification...

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