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

Tapeoka · 07-31-2009, 04:26 PM

Hi everyone -

I am in SF Bay area and just submitted my loan modification papers on July 27, 2009. We have an 80/20 loan with Wells Fargo and the 1st loan is an ARM and the second one is a balloon payment and both are due to reset in 3 years. So far everyone at WF have been really friendly and I was told my papers have been assigned to a negoitator already and it will take 30-90 days for them to get back to me. We are current right now but don't know how much longer we can keep making our interest only payment on both loans which totals $5,000 a month. We were told by WF that we qualified for a loan modification due to income reduction and the decrease in value of the home. Our original loan was for $620,000 and now the house is valued at $400,000. I am keeping my fingers crossed and hope I don't get sucked into the loop hole and forgotten like many. Weird part is the first loan which is the big one is with WF Mortgage Dept and the second loan is with WF Equity Dept so I had to contact the Equity Dept separately and let them know I'm in the middle of applying for a loan modification and they immediately slashed our payments in half and said that it will be like that for 3 months which will give us time to hear back on the loan modification and at that time they will modify the second loan to the same terms as the first one. They said that during this period we will get a default notice because we only paid half and to ignore it because WF will not report it to the credit agencies and that it will show payment in their systems. I asked for it in writing and they said notice will be sent out confirming the set up. I'm thrilled about the reduced payment but really nervous about the whole late notice and them not reporting to the credit agency. It doesn't sound legit to me. Anyone have similar experiences??? Just don't want to find out we are in default because we were given false information by the rep which sounds like many have been lead down this road before. What should I do?

07-31-2009, 04:26 PM	#112 (permalink)
Tapeoka Senior Member Join Date: Jul 2009 Posts: 74 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification of 5 in 1 arm Wells Fargo SUCCESS!! Hi everyone - I am in SF Bay area and just submitted my loan modification papers on July 27, 2009. We have an 80/20 loan with Wells Fargo and the 1st loan is an ARM and the second one is a balloon payment and both are due to reset in 3 years. So far everyone at WF have been really friendly and I was told my papers have been assigned to a negoitator already and it will take 30-90 days for them to get back to me. We are current right now but don't know how much longer we can keep making our interest only payment on both loans which totals $5,000 a month. We were told by WF that we qualified for a loan modification due to income reduction and the decrease in value of the home. Our original loan was for $620,000 and now the house is valued at $400,000. I am keeping my fingers crossed and hope I don't get sucked into the loop hole and forgotten like many. Weird part is the first loan which is the big one is with WF Mortgage Dept and the second loan is with WF Equity Dept so I had to contact the Equity Dept separately and let them know I'm in the middle of applying for a loan modification and they immediately slashed our payments in half and said that it will be like that for 3 months which will give us time to hear back on the loan modification and at that time they will modify the second loan to the same terms as the first one. They said that during this period we will get a default notice because we only paid half and to ignore it because WF will not report it to the credit agencies and that it will show payment in their systems. I asked for it in writing and they said notice will be sent out confirming the set up. I'm thrilled about the reduced payment but really nervous about the whole late notice and them not reporting to the credit agency. It doesn't sound legit to me. Anyone have similar experiences??? Just don't want to find out we are in default because we were given false information by the rep which sounds like many have been lead down this road before. What should I do?