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WF Loan Modification - just got approval letter

I just received my letter from WF stating that I was approved for a loan modification (after waiting three months) and I have a three month trial period. What I don't understand is that my payments are only $37.00 less than my current amount. I'm confused and would like any comments/suggestions as to whether I should sign the paperwork for the loan modification or if I should do a [url=]refinance[/url] (my current rate is 7.125%). In the loan modification paperwork they don't tell me what my payments will be after the 3 month trial period. How do I know that my payments will not be higher than I'm currently paying. I thought the purpose to the loan modification was to make your payments less than the current amount to give you some type of relief until your situation improves. Any comments/suggestions are appreciated.

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi GeorgiaGirl,

It is the purpose of loan modification to lower your payments. However, as most of borrowers ask for a loan modification after they default on their payments, the late charges are added to the loan amount. As a result, the payments may get increased. Once you successfully complete the three month trial period, you would be given the new payment plan to pay off the debts. You can contact Wells Fargo and ask them about the new payment plan. They may be able to explain it to you in details.

As far as refinance is concerned, you won't be able to do it because you have defaulted on your mortgage payments. In such a situation, lenders will not be ready to refinance your loan.

Like | Dislike | Share | Posted: Thu, 09/24/2009 - 19:43

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Forgive me if this discussion has been going on elsewhere and this is simply a continuation of it, but I don't see where Georgia states that she was ever behind in her payments or mentions anything about late fees. Based in the information provided in the OP, that appears to be a large assumption on your part, adonis, as does the assumption that Georgia wouldn't be able to refinance because she defaulted on her loan.

Georgia, definitely speak to someone if you think there is a potential issue with the mod offer. And if you have the means, credit score and opportunity to get into a lower rate/better overall mortgage then it's definitely worth looking into.

Like | Dislike | Share | Posted: Sat, 09/26/2009 - 14:59

sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You will need to WF and ask for explination

If you are not comfertable with what they offer, you cna alwsy reject the offer

Like | Dislike | Share | Posted: Thu, 09/24/2009 - 13:58

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