Loan Modification Forum - LoanSafe.org - View Single Post - Modification of 5 in 1 arm Wells Fargo SUCCESS!!

5in1arm · 07-12-2009, 11:01 PM

SanJoseGal,

I was honest with them and told them that I was close prior to my paycut (just barely making it) and then after my paycut it put me behind(deficit) about $500 a month. I think the thing that helped the most was that I had a 5in1 interest only loan, and as you know a lot of these loans were predatory in nature. I think this coupled with the fact that my home appraised about 200k less than what we paid for it helped us get the mod. I truly think they look at it like this. If I am upside down on my home 200k and I dont have anything invested in this home, and I walked away they stand to lose a lot of money. But some people are trying to modify there home with 150k equity and the bank will gain a lot of money if they let you lose the home. That is business 101. I had a wells fargo customer service person tell me that some people intentionally get behind and have 50k in their checking acount and think they are going to get a mod.
I truly think each persons situation is different. But if your home is upside down. Your investor agrees to the modification. They have more to lose than to gain. They will work out a modification. Unfortunately there are people that will lose there homes because they cant afford to pay their mortgage that have lots of equity and the bank will clean up on the home owners lose.
Anyway hope this long version answer helps. Take care.

07-12-2009, 11:01 PM	#105 (permalink)
5in1arm Senior Member Join Date: Apr 2009 Posts: 62 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification of 5 in 1 arm Wells Fargo SUCCESS!! SanJoseGal, I was honest with them and told them that I was close prior to my paycut (just barely making it) and then after my paycut it put me behind(deficit) about $500 a month. I think the thing that helped the most was that I had a 5in1 interest only loan, and as you know a lot of these loans were predatory in nature. I think this coupled with the fact that my home appraised about 200k less than what we paid for it helped us get the mod. I truly think they look at it like this. If I am upside down on my home 200k and I dont have anything invested in this home, and I walked away they stand to lose a lot of money. But some people are trying to modify there home with 150k equity and the bank will gain a lot of money if they let you lose the home. That is business 101. I had a wells fargo customer service person tell me that some people intentionally get behind and have 50k in their checking acount and think they are going to get a mod. I truly think each persons situation is different. But if your home is upside down. Your investor agrees to the modification. They have more to lose than to gain. They will work out a modification. Unfortunately there are people that will lose there homes because they cant afford to pay their mortgage that have lots of equity and the bank will clean up on the home owners lose. Anyway hope this long version answer helps. Take care.