Wells Fargo loan modification

[jblyx002]

I sent all the materials (pay stubs, hardship letter, taxes paid) to Wells Fargo a couple of weeks ago. Should I follow up to make sure they received everything alright and what the expected review time may be? I always like to follow up on things because it never fails that after a couple of months or so and finally calling, someone claims to have never received anything. Is there a number to call for follow ups?

Also, what is the typical outcome of these claims? My wife is worried that it's just going to be a temporary lowering of interest and then we will have to pay it all back at the end of the time period. Since I lost my job our mortgage payment is more than 50% of our income. I just don't see how they will get us below the 31% or whatever the threshold is.

Jason

[Moe Bedard]

Hi Jason,


Welcome to the forum and thank you for joining............

Information about that program through Wells Fargo can be found in this link.........

https://www.wellsfargo.com/mortgage/.../stabilityplan

contact info for follow up can be found here...........
https://www.wellsfargo.com/jump/homeassist


The servicers are applying a standard waterfall approach to bring the payments to the 31% target which involves............

Step 1a: Request Monthly Gross Income as specified above.

Step 1b: Validate total first lien debt and monthly payments (PITIA). For purposes of making a provisional modification offer during the trial modification period, the borrower’s unverified income and debt payments can be used. Provisional information and modification terms will be verified in a timely manner.

Step 2: Capitalize arrearage. Servicers may capitalize accrued interest, past due real estate taxes and insurance premiums, delinquency charges paid to third parties in the ordinary course of servicing and not retained by the servicer, any required escrow advances already paid by the servicer and any required escrow advances by the servicer that are currently due and will be paid by the servicer during the Trial Period. Late fees are not capitalized.

Step 3: Target a Front-End DTI of 31%. The lender/investor shall follow steps 4, 5, and 6 to reduce the borrower’s payment to the level corresponding to the Front-End DTI Target.

Step 4: Reduce the interest rate to reach the Front-End DTI Target (subject to a floor of 2%). The note rate should be reduced in increments of 0.125 %, and should bring the monthly payment as close as possible to the Front-End DTI Target without going below 31%. If the resulting modified interest rate is at or above the Interest Rate Cap, this modified interest rate will be the new note rate for the remaining loan term. If the resulting modified interest rate is below the Interest Rate Cap, this modified interest rate will be in effect for the first five years, followed by annual increases of 1% (100 basis points) per year or such lesser amount as may be needed until the interest rate reaches the Interest Rate Cap, at which time it will be fixed for the remaining loan term.

Step 5: If the Front-End DTI Target has not been reached, extend the term of the loan up to 40 years. If term extension is not permitted extend amortization. The 40-year term begins at the start of the modification (after the borrower successfully completes the Trial Period). Note that the servicer should only extend to a term that is necessary to reach the Front-End DTI Target; there is no requirement to extend to a 40-year term.

Step 6: If the Front-End DTI Target has not been reached, forbear principal. If there is a principal forbearance amount, a balloon payment of that forbearance amount is due on the maturity date, upon sale of the property, or upon payoff of the interest bearing balance. If the modification does not pass the NPV Test and the servicer chooses to modify the loan, the modified balance must be no lower than the current property value.