asc/wells fargo 2nd loan mod

[jennifer123]

hi everyone,

i had my loan modified with asc in july 2008. i was given a horrible interest rate of 10.5%. I decided to call the wells fargo exec. office. i was told wells fargo is also known as asc. i spoke to Steve in the exec office and he told me to fax our hardship letter, paystubs and financial statement. in speaking with him he told me the amount they have down as our income which is incorrect. i am wondering if that is why they gave us a 10.5% rate because they have our income down as over 1,000.00 more then what it is. i am again overwhelmed with having to go through this again. i was wondering if anyone out there has ever gotten a loan mod before and reapplied for another one. in doing our financials it is showing a negative 168.00. i am guessing they will deny us for showing a negative? i am also wondering how i should address our hardship letter requesting another loan mod. i again appreciate any guidance you can give.

Jennifer

[Moe Bedard]

The hardship letter would be the same as before..........indicate what the new hardship is............

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.

[jennifer123]

thanks for getting back to me ***. What should i show this time for financials a small surpluss or a small negative. i am guessing if i show a small surpluss with the payment i have now they wont lower our interest rate.

[Moe Bedard]

the criteria is set for modifications based on the announcement made on March 4th in which Wells Fargo is participating.................your payments would need to be over the target of 31% of gross income.............
here is the link to the guidelines and the qualifications...........
http://www.treas.gov/press/releases/...guidelines.pdf

[jennifer123]

i was wondering if anyone can give their opinion on my hardship letter and in doing our financials we end up with a 249.00 surplus. any suggestions if that is alright to have.
To whom it may concern:
we are writing this letter to explain our unfortunate set of circumstances. our current rate is at 10.5%. we are asking if you would please consider lowering our interest rate to make our payment more affordable. our number one goal is to keep our home and we would really appreciate the opportunity to do that. we have eliminated what expenses we could and worry that being our house payment is so high we are not financially prepared for any unexpected expenses that might occur. we thank you very much for taking the time to review our file and are very greatful we were given the opportunity to apply for your lon mod program.

has anyone heard that if you already had a loan mod you can not get another one? i was told that your house payment should not exceed 31% of your monthly income. right now our payment is at 49% of our monthly income. does anyone have any advice to this? i really appreciate any help and advice you can give.

jennifer

[purenergy]

Jennifer,
Could you share the contact info you have for both ASC & WF? when I click on the "toolbox" page for contacts, I'm getting a "page not found" error.

I'd like any & all contacts. I know at one point I had the Exec #, but I don't any more. It seems I got some action w/that # at one point in time.

Our short sale fell through 2x. So now we are contemplating just getting this modified (original plan last July-Sept.). This is an empty rental property. In the meantime, we got our primary modified (Central Mortgage), so we are breathing easier.

Thanks for any info you can share. Keep us updated.

[jennifer123]

The asc/wells fargo exec number is 800-853-8516. i faxed my info on wed. and i fiund out today that we have been assigned to a negotiator as of yesterday which surprised me because i thought it would take 10 days before we would get assigned. i am not sure being we are going thru the exec office if that is what helps people out. we already had our loan mod in july of 08 but they locked us in at the rate we were at the time of the mod which was 10.5. i thought being there are new plans out there we could apply for another in hopes they will lower our rate. i just hope the investors are doing loan mods on the loan mods that have already been modified. good luck with your mod and keep me updated and i will do the same.
jennifer

[Alexis]

We, too are w/ASC & have been dealing w/them since 12/08 for loan mod. They said we didn't qualify for a re-fi so passed us over to H4H which we were eligible for. Sounded like a good program. We are in NO CA where home values have plunged - they will adjust the principle then offer a 30yr fixed, the catch: it's @8.5%!!!! In doing the math that's not much different in payments we're currently making! Homeowner must also 'share equity' upon selling. Not so sure this is the best for us. We are scheduled for appraisal today & will go from there. We asked ASC who our investor(s) were & they said couldn't release that info -- ANYONE ELSE HAD LUCK IN FINDING THIS OUT? I'd heard ASC is tough -- they are!! Alexis

[Janice Isom]

hi how are you I am currently going through the same thing with ASc and I also called the exec team and would like to know if the have modified the loan. How far behind were you?

[Janice Isom]

Hi jennifer I am currently with ASC/ Wells Fargo too. Have you any luck with your loan modification?

[jennifer123]

hi everyone,
just want to give an update on our loan mod process. i submitted all my paperwork to the office of the president at wells fargo on march 18th and i got a call today from the exec office letting me know that they are setting us up on a 3 month forbearance at 5.5%. our interest rate now is 10.5%. i guess this forbearance is what they start out with so they can see good faith payments. i have done a loan mod before with wells fargo and they had us on a 3 month forebearance to start with and after the 3 months they completed the loan mod. i was hoping for the loan mod to be done completely without having to do the forebearance but the fact of being able to keep our home and not have to worry about foreclosure and even deal with the phone calls is enough. they told me over the next three months to work on our budget to bring it to a positive balance because when i submitted our financials we showed a negative 145.00. i dont understand why they want us to do that because with our house payment going down 700.00 we will now have a surplus. i cant believe that it only took them 20 days to do this. i was calling them up to three times a day and each time i called they were very nice and helpful. i am going to sleep much better tonite thanks to all the help and guidance i got from loansafe.

[Moe Bedard]

That is great news Jennifer!!


Keep us posted on your progress.........

[jennifer123]

has anyone heard of interest rates being lowered as low as 2%? a friend of mine also has wells fargo and i have been telling her to attempt to do her loan mod on her own. i told her that wells fargo called me yesterday and informed me that they are going to lower my rate from 10.5 to 5.5. She has hired a loan mod comp. to do her loan mod because they told her they can get her rate down to 2%. I am very happy with what wells fargo offered us and keeping it. I just had to see my friend spend 500.00 a month for a loan mod when she can do it herself. the loan mod comp told her it can take up to 3 months to complete the loan mod.

[CW California]

Hi jennifer
It'a up to the mortgage company/investor what they will drop the rate too. With the new Makeing Home Affordable Plan (the Obama one) it's based on a target of 31% of the income. If that comes to 2% then hopefully they would use that but the interest goes back to market after 5 years. A company that tells someone they can get a 2% interest rate for her is using that as marketing tool. I wouldn't trust them with my worst enemy much less my money.

[Moe Bedard]

Jennifer.................that mod company would not be able to get a rate below 2%..............they are not being up front with your friend..........

According to guidelines.........
The Interest Rate Floor for modified loans is 2%.

[jennifer123]

i guess they told her they can get her an interest rate at 2%. i thought that they don't go any lower than 3% and if they would have to go lower then they feel the borrower can not afford the house. they are charging her 500.00 a month to do this and claim it will take 3 months to complete the mod. i am curious to know if they make the people who go thru these loan mod companies also do the 3 month forebearance with loan mod to follow plan.

[Moe Bedard]

The modification company isn't going to be able to get anything different for her than she would be able to get herself under this new program because the guidelines are uniform for the servicers and investors that are participating in the program.................the steps that the servicers are following to get to the 31% target are the same across the board.


The MHA program warns..........
BEWARE OF FORECLOSURE RESCUE SCAMS – HELP IS FREE!
• There should never be a fee for assistance with or information about the Making Home Affordable Program.
• Beware of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay – walk away!

[jennifer123]

hi ***,
Thanks for getting back to me. i am trying to advise my friend. i told her the money she is putting out for a loan mod company can be used to pay her house payment. is the 3 forebearance payments pretty common with the new Obama plan? my friend thinks because she is going thru this loan mod company she will be able to avoid having to do the 3 forebearance payments and get the loan mod done from the start. believe me i was tempted at one point to inquire with a loan mod company but heard that going thru a loan mod comp doesn't guarantee a loan mod. wells fargo told me the loan mod companies do not have any special connections with the investors. im guessing that is true. i think my friend thinks she can get a 2% rate because her loan now is in the 6 percent range. i didn't even think wells fargo would offer me 5.5%. i was expecting something in the 7 or 8 percent range so you can imagine how excited i was when they offered me 5.5%. i am also surprised that our investor permitted anothe loan mod because we completed one in july 2008 but that loan mod didnt lower our rate it just locked us in at what our rate was at the time of the loan mod. i was also concerned because our loan is not freddie or fannie mae. but with alot of help from loansafe and god getting us thru this difficult time it helped. with that it makes you want to encourage others to not give up and to fight for what they worked so hard for.

[Moe Bedard]

If she has FannieMae or FreddieMac...........she will automatically be put into the trial mod.............this is a part of their guidelines.........
If not then these are the steps they will follow........in most cases the trial mod is a give in...............

In summary, participating servicers will (in order):

• Determine that a loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:

• Obtain sufficient income information to determine if the borrower has a front-end debt-to-income (DTI) ratio of 31% or greater (verbal income may be accepted for initial evaluation subject to verification prior to final approval). If yes:

• Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer – but not late fees or other default fees charged by the servicer;

• Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;

• Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:

• Put the borrower on a trial modification at the new interest rate and payment for three months.

• If the borrower is current at the end of the trial modification period, the servicer will execute a modification agreement that includes escrows for taxes and insurance even if the prior loan was not escrowed.

[Janice Isom]

Hi what happens after the three months? I had email the board from feb and still waiting on a loan mod

[Moe Bedard]

If your payments are made on time they will verify that there have not been any changes in income from the beginning of the trial period and then they will work on a modification.

[Janice Isom]

I did do a forebearance back in oct Nov and dec and they stated that they will give me a loan mod in jan and they told me to give a good faith in jan and set my rate fix at 9

[Janice Isom]

my payments have been making on time but tey still giving me the run around even with emailing the exec board

[Moe Bedard]

If everything that you have done was done before March 4th.............then in order to be considered for the new Making Home Affordable modification, if you qualify, you would need to submit new documents because they would be unable to use documents that are older than 60 days..............

The information and steps to take for this program through Wells can be found here...........
https://www.wellsfargo.com/mortgage/.../stabilityplan

[Janice Isom]

Thanks for replying so fast. yes I did submit way before march and I resubmitted again on April 2 so they stated that I have to wait until 30 days to find out the status.how would I know to work out the 30/31% income.