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?
Just as a note to those attempting to modify your mortgage.
The System:
1. Your Processor - Many get upset that they cannot speak with the person/people reviewing their loan. The reason for this is the processor have very little say in what can and cannot occur. They are provided with the process and guidelines to review the loan. These guidelines are not indented to be released to the public because if they were any and everyone would be able to modify their-those that need the help and those that don't. By keeping the processors and borrowers away from each other it helps to keep these guidelines.
2.Documents - Most will find that they are sending and resending documents constantly. This is very frustrating, but it is a key part to ensuring the most timely review as you can get. The best thing you can do is fax in paystubs as you receive them, resubmit your financial worksheet, hardship letter and profit & loss statement (if self employed) every 30 days making sure you change the date to the current date each time you submit. SIGN EVERY DOCUMENT and INCLUDE YOUR LOAN NUMBER on all pages.
Reviewing your loan:
1.Surplus vs Deficit - Many have been trying to figure out whether they should show a surplus or a deficit on the financial worksheet. Truth is you should show what is accurate. First, this will provide you with the most accurate decision. Second, in most cases (not all) what you submit will not be what is used as your credit accounts are verified using your credit report and sometimes they are only allowed to use accounts that are current on your credit report. Sometimes they will only use the credit report for any credit account, others they will use what you state on your worksheet. What they use all depends on the investor of your loan and/or the type of loan you have.
2.Delinquency - Some investor's wont allow a review of your loan unless you are delinquent others don't care about your delinquency and then there are some that will see you are already 12, 24 or more months behind and believe it is a lost cause. The best thing to do is to keep up with your payments as best as possible.
3.Principal Reduction - This is not an option that is entertained very often. In fact in a recent meeting between Wells Fargo and the government committee Wells Fargo stated they had started using principal reduction in rare cases where the home is now worth 50% or less than that is owed and only on loans that the investor/lender is Wells Fargo. These options are only used when normal rate reduction and term extension cannot achieve an affordable payment. If this is what you are after, I recommend not trying the chances are very slim as Wells Fargo only owns less than 3% of the mortgages it services.
Random Tips/Advise:
1. List your Food in its own category
2. List Utilities (Electric, Heat, Water, Sewer & Trash ONLY) in its own category
3. List Transportation (Car Insurance, Fuel & Public Trans ONLY) in its own category
4. Include the # of people in the home and vehicles owned on your financial worksheet
5. Update documents every 30 days
6. Do not list the the following as a hardship, as they are not hardships:
-Value of Home
-Interest Rate compared to current market interest rates
7. If you have excessive credit card debt seek counseling through a HUD approved counselor
8. Depict your actual expenses on your financial worksheet
9. Cut back to the necessities:
-Your investor realizes you want to help your family, but your children that are over 18 are adults giving them money or providing for them is not your investor's concern - you making your mortgage payments is
-You do not need entertainment, a cook, a gardener - these are all excessive expenses your investor will end up cutting out to see if you can afford your mortgage if you didn't pay for them
10.If you talk to your processor or a person that works closely with them, be kind. It isn't their fault they only received your loan a few days ago, but they work with your loan closely and if you are mean there is a great chance they will find a way to deny your file.
11.If you were denied, try again. Guidelines are constantly changing, you may now qualify or you may get a processor that sees something that the other one missed or you may get one that misses something that the other didn't.
12.If you were denied because you can't afford a modified payment, this means that based on your investors guidelines and your financial situation you can't afford the lowest payment that your investor would allow. You need to look into selling your property.
Final Note:
While the process isn't an easy one, if you truly need help stick through it and you will either get help or find out that your situation can't be help on the mortgage side. If your situation can't be helped you need to look at your expenses and see what can be reduced/cut or look into selling your home.
If you can afford your mortgage don't clog the system just because you want a better deal. Doing so means you make the process harder for those that do need help and you could possibly take the chance for a struggling person to get help. Some investors put limits on portfolios, allowing only a certain number of modification of loans in that portfolio, so if you got the last one the people that need the help wont get it.
The System:
1. Your Processor - Many get upset that they cannot speak with the person/people reviewing their loan. The reason for this is the processor have very little say in what can and cannot occur. They are provided with the process and guidelines to review the loan. These guidelines are not indented to be released to the public because if they were any and everyone would be able to modify their-those that need the help and those that don't. By keeping the processors and borrowers away from each other it helps to keep these guidelines.
2.Documents - Most will find that they are sending and resending documents constantly. This is very frustrating, but it is a key part to ensuring the most timely review as you can get. The best thing you can do is fax in paystubs as you receive them, resubmit your financial worksheet, hardship letter and profit & loss statement (if self employed) every 30 days making sure you change the date to the current date each time you submit. SIGN EVERY DOCUMENT and INCLUDE YOUR LOAN NUMBER on all pages.
Reviewing your loan:
1.Surplus vs Deficit - Many have been trying to figure out whether they should show a surplus or a deficit on the financial worksheet. Truth is you should show what is accurate. First, this will provide you with the most accurate decision. Second, in most cases (not all) what you submit will not be what is used as your credit accounts are verified using your credit report and sometimes they are only allowed to use accounts that are current on your credit report. Sometimes they will only use the credit report for any credit account, others they will use what you state on your worksheet. What they use all depends on the investor of your loan and/or the type of loan you have.
2.Delinquency - Some investor's wont allow a review of your loan unless you are delinquent others don't care about your delinquency and then there are some that will see you are already 12, 24 or more months behind and believe it is a lost cause. The best thing to do is to keep up with your payments as best as possible.
3.Principal Reduction - This is not an option that is entertained very often. In fact in a recent meeting between Wells Fargo and the government committee Wells Fargo stated they had started using principal reduction in rare cases where the home is now worth 50% or less than that is owed and only on loans that the investor/lender is Wells Fargo. These options are only used when normal rate reduction and term extension cannot achieve an affordable payment. If this is what you are after, I recommend not trying the chances are very slim as Wells Fargo only owns less than 3% of the mortgages it services.
Random Tips/Advise:
1. List your Food in its own category
2. List Utilities (Electric, Heat, Water, Sewer & Trash ONLY) in its own category
3. List Transportation (Car Insurance, Fuel & Public Trans ONLY) in its own category
4. Include the # of people in the home and vehicles owned on your financial worksheet
5. Update documents every 30 days
6. Do not list the the following as a hardship, as they are not hardships:
-Value of Home
-Interest Rate compared to current market interest rates
7. If you have excessive credit card debt seek counseling through a HUD approved counselor
8. Depict your actual expenses on your financial worksheet
9. Cut back to the necessities:
-Your investor realizes you want to help your family, but your children that are over 18 are adults giving them money or providing for them is not your investor's concern - you making your mortgage payments is
-You do not need entertainment, a cook, a gardener - these are all excessive expenses your investor will end up cutting out to see if you can afford your mortgage if you didn't pay for them
10.If you talk to your processor or a person that works closely with them, be kind. It isn't their fault they only received your loan a few days ago, but they work with your loan closely and if you are mean there is a great chance they will find a way to deny your file.
11.If you were denied, try again. Guidelines are constantly changing, you may now qualify or you may get a processor that sees something that the other one missed or you may get one that misses something that the other didn't.
12.If you were denied because you can't afford a modified payment, this means that based on your investors guidelines and your financial situation you can't afford the lowest payment that your investor would allow. You need to look into selling your property.
Final Note:
While the process isn't an easy one, if you truly need help stick through it and you will either get help or find out that your situation can't be help on the mortgage side. If your situation can't be helped you need to look at your expenses and see what can be reduced/cut or look into selling your home.
If you can afford your mortgage don't clog the system just because you want a better deal. Doing so means you make the process harder for those that do need help and you could possibly take the chance for a struggling person to get help. Some investors put limits on portfolios, allowing only a certain number of modification of loans in that portfolio, so if you got the last one the people that need the help wont get it.
This is halarious to read all of the comments and how EXACT they are to my husband and I. We have been trying since last July to be reviewed for the Home Affordable program. The constant circles of phone calls. Calling and calling only to be misguided by the customer service rep that we think is finally helping us!!! Constantly being told one thing, only to call back when they tell us, and be told something else. The funniest thing was the last conversation 3 weeks ago, they had all of the wrong info, AGAIN, and it said we collected a pension! hahahaha my husband and I are in our early 30's. Wells Fargo is a freakin joke! They are liars, full of deceitfulness , and could care less that we have four children and we are desperately trying to keep our home. We are more than just a loan number, we are a family!
applied for modification, made the 4 months of payments on time, sent info on time. Now being denied....I was 1 month behind (606) now they want 2000.00. their alternative is short sale, or sign title over to them. I only owe 59,000.00, the house appraised at 103,000. now what do I do
Hi Mary!
Welcome to forums!
If you cannot afford the property, then it's better to sell it off. You can accept the short sale that your lender is offering you and get rid of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you cannot afford the property, then it's better to sell it off. You can accept the short sale that your lender is offering you and get rid of the property.
Feel free to ask if you've further queries.
Sussane
i have a balloon payment due in june and i don't have the money, what can i do?
Welcome andrew,
You can apply for a loan modification from your lender. As you're facing hardship, you should inform your lender about the same. However, if you're presently unemployed, then the lender will not consider your request. This is because you won't be able to pay the mortgage dues though your loan is modified.
You can apply for a loan modification from your lender. As you're facing hardship, you should inform your lender about the same. However, if you're presently unemployed, then the lender will not consider your request. This is because you won't be able to pay the mortgage dues though your loan is modified.
I have some money saved up in money market account(75,000), will they denied me for this considering i was let go from my employer and im currently collecting unemployment?
Hi Meco,
Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/take-savings.html
Take a look at it. Hope it helps you.
Thanks
Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/take-savings.html
Take a look at it. Hope it helps you.
Thanks
hey colammy, join the club!! wells fargo has been running me in circles for nine months. i send them all the information that they required. only to be denied the next week because documents were not submitted on time. i just talked to a W. F. rep minutes ago. the rep was asking for certain documents and i said i just sent these papers to you! it took him a few minutes and then came back reading the document to me. this scenario has happened so many times, its not funny. THEY DON'T KNOW WHAT INFORMATION THEY HAVE. very frustrating and depressing. the right hand doesn't know what the left hand is doing, or that it even has another hand. i am different than a lot of homeowners, in that i have a lot of equity in the home.
Why does Wells Fargo make it so diffcult when going through this process?
Are the customer service people put there to irritate us and make our lives more difficult than it is ? help.
Are the customer service people put there to irritate us and make our lives more difficult than it is ? help.
Hi mary!
Welcome to forums!
The process is not difficult but it is a long process and will take some time to complete. The lender will judge your situation depending upon the information that you provide. A large number of people may have applied before you and the lender will have to consider their request first before they consider your request. I would suggest you to be patient and definitely your modification request will be accepted by the lender.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
The process is not difficult but it is a long process and will take some time to complete. The lender will judge your situation depending upon the information that you provide. A large number of people may have applied before you and the lender will have to consider their request first before they consider your request. I would suggest you to be patient and definitely your modification request will be accepted by the lender.
Feel free to ask if you have further queries.
Sussane
to those who have lost all faith in Wells Fargo i would like to offer a little hope my husband and i went through the mod. process a yr. ago and were put on a repayment plan we then lost some income and had to go through the process again this may. may 9th we sent all of our documents in and yesterday May 25th we were approved for an actual moidification dropping our interest rate to 5% and making our payments a $100 less a month so those who are trying don't give up you have to be persistant they are not the easiest to deal with and most of the representatives are not trained properly but they are trying to finely tune their system I worked with a supervisor so if you can work your way up the ladder that is best. But it's like the old addage if you get bad service you tell 10 people you get good service and you tell one person so i am sharing this with those who feel discouraged there i9s hope and you don't have to pay an attorney thousands of dollars to do it my husband and i did by ourselves.
I've been unemployed since Nov. 2008, In April 2009 I sent Wells Fargo a request for a modification they then gave me a forebarence and I had a balloon payment of $ 9000.00 in jan. 2010, I then applied for a modification and was told not to make any payments while this was going on. I was :roll: DENIED in Feb. 2010 and hired a Law Center out of California, they charged me $ 3195.00 and I can't get answers from them and I'm now in foreclosure. WELLS FARGO isn't trying to help anyone. BIG BAIL OUTS for Walls Street and screw the Americans who worked all their lives to lose there homes. I've been to my first foreclosure mediation session and due back in court on June 22 I hope the Law Center that charged me $ 3195.00 gives me some answers soon.
I too am doing a loan modification and with wells fargo and have been calling them every other day to follow up on whats going on with it. its been almost a month and I get the same answer, that its still being reviewed. in the meantime i keep getting foreclosure letters a bunch of them all the time. very stressful considering the mortagage company said that I'm 3 months behind at first and now 5 months cause they will not take any more payments from me. i can afford my payment and I got behind a long time ago but they cannot figure out how?Its a big mess. :(
:( :( :( :(
:( :( :( :(
Hi nan,
As your loan modification request is being considered by the lender, they can't send you the foreclosure notices. You should contact your lender and ask him to stop sending those notices to you. You can even ask the lender to look into your request for loan modification and take a decision asap.
Thanks
As your loan modification request is being considered by the lender, they can't send you the foreclosure notices. You should contact your lender and ask him to stop sending those notices to you. You can even ask the lender to look into your request for loan modification and take a decision asap.
Thanks