SanJoseGal,
The guidelines that Wells is following if the investor on your loan is participating is for the MHA plan.........and the.........
Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation.
If the payment on your first lien alone is more than 31% of your gross income............they will follow these guidelines to try to get the payment to a more affordable level........
http://www.treas.gov/press/releases/...guidelines.pdf