WF loan mod. run around - Loan Modification Forum

rjy53 · 03-26-2009, 07:19 AM

Does your credit score have anything to do with getting your loan modifcation. We have a WF loan on our house and have been trying for months to get our home loan lowered. We paying 1250.00 a month and feel like its taking forever. I lost my job after 20 years in January of 2009. We called them the day it happen and been sending them every piece of info they requested. We got behind right away but was then able to catch back up tax return. Still waiting for a case manager to start working on our paper work. Based on Obama plan my payment would be around 462.00 a month which I know we could handle. My house is still worth more then I owe and I have a good interest rate of 5.5 on a 15 year loan.

Dan Bailey · 03-26-2009, 07:23 AM

rjy53
Glad you found the forum and posted,
In answer to your question-credit score does not affect modification ability.

rjy53 · 03-26-2009, 08:54 AM

Thank You. What is the avg wait time on how long it takes to get WF moving on trying to get you help. I am current on my loan right now, but without a job and trying to live on unemployment its only a matter of time before I am behind again.

LHarveyMadman · 03-26-2009, 09:39 AM

rjy53, what are your prospects for getting another job in the near future? I don't know how much unemployment income you are receiving, but if it isn't enough to cover the cost of a modified loan, then you might not get approved.

With a current 5.5% interest rate - a very good rate already - there isn't much room to go down, and so it would be very difficult to get your payments cut by over 60%. Extending your loan term out to 30 years will help a little, but I seriously doubt that it will drop your payments by that much.

rjy53 · 03-26-2009, 11:07 AM

Here my short story to try and get the best info. we have lived in our home for over 25 years. In 2006 we refi a 15 year fixed loan for 110.000 at 5.5 %. We had issues from the start with the 1250.00 dollar a month payments but was just getting by as other bills would get behind we would borrow from peter to pay paul. I had a salary job that payed me about 56.000 a year and I had been with the company now just short of 20 years. I got layed off on 1/9/2009 and collect around 1490 a month from unemployment. This is less then what I was bring home every two weeks when I was working. I got paid every two weeks when I was working. I worked as a supervisor for a auto part supply company. Well here in Michigan we know that cars are not selling and I could be out of work for awhile. I am thinking until around the middle of 2010 at less. If I can get WF to give me a home loan mod to cut my payments in half by lowering my interest some and moving my loan out to a 30 year fixed I will be able to keep my payments current with just what I am getting from unemployment now and when I get back to work I may even be able to double up from time to time. Based on Obama 31 % debt to income my house payment right now is 82% of my income. 31% would be 462.00 a month. I could more then live with that and even if push came to shove I could even take a job paying me less then what I was making and still be OK. I just need for WF to start working with me on my file. I still owe 93.000 on my current loan with my house worth down to around 125.000 as of today. When I took out the loan it was worth 180.000.

Well my question is should I continue to make my payment in hope they will soon get to my file or hold back on my payments and keep that money put away and force the issue.

LHarveyMadman · 03-26-2009, 12:18 PM

That $1250 must include real estate tax and insurance. $110,000 at 5.5% amortized over 15 years equals about $900 for principal and interest. That means that your tax and insurance come to about $350 per month. Is this accurate?

Here's the problem. The real estate tax and insurance may not change very much, if at all. Depending on what your county has assessed your home for, it might be possible to get a cut on your real estate tax. However, Michigan does have a pretty high average property tax rate, so a cut in assessment by $50,000 could save you $1000 a year in taxes.

If you were to have the current balance ($93,000) re-amortized over 30 years at 0% (an unheard-of scenario), you payments would still be $260 per month. Add this to the property tax and insurance (let's say it does get cut to $250 per month), and your monthly payment will still be in excess of $500. If your interest rate were cut to 2.5% - still very optimistic, but not impossible - your monthly principal and interest would be about $367. Your total PITI (principal, interest, taxes, and insurance) would still represent about 41% of your unemployment income. Nevertheless, that would be loads better than what you're shelling out now.

So basically, your current unemployment income might not sufficient to qualify for a loan modification, which is why I asked my original question about your being able to find another job. Still, it doesn't hurt to try. Good luck.

rjy53 · 03-26-2009, 01:51 PM

Well for the last 38 years covering 3 total jobs I have found myself employment in Metal Stamping companies. At this time in my life I find these jobs very hard to find due to the state of all the auto related companies being in a major down turn at this time. I do believe the need for supervision in these types of plants will start to return in the next year or so and that I will be called back to my old job or be hired by one of the companies that made it through these bad times. I am now looking into other areas of production supervision out of the metal stamping field where I may be able to find employment. I am also looking into a few of the training classes for new job skills offer in the state of Michigan. This is all very new to me because other then a few months back in 1980 I have never been unemployed. This is only the second time in my life that I ever collected unemployment.

LHarveyMadman · 03-26-2009, 02:56 PM

What I was trying to say is that it doesn't hurt to try to get a modification. But just keep in mind the possible roadblocks that you may encounter.

rjy53 · 03-26-2009, 03:11 PM

I understand, just did not want you to think I was a lazy SOB. I need to know everything that WF is going to take into account and what will help me and what will hurt me. I just know I need to get this process started and these payments under some kind of control. This way I can start to get some kind of direction as to what I am going to do. What should I do about making payments. Alot of people have told me they have stopped making payments to their banks and started putting that money aside in a effort to try to get the banks to work with them more quickly. Do you think that will help.

LHarveyMadman · 03-26-2009, 04:08 PM

I certainly did not get the impression that you are a lazy SOB.

The standard advice here is that if you are able to make your payments, then you should continue to do so. But if making payments means that you are accumulating other debt - credit card debt, for example - then you might have no choice but let yourself become late on your mortgage.

Being late is not a prerequisite for a loan modification. A hardship is. Have you gotten started on a hardship letter? People often post their letters here for feedback.

HopingtoFind · 03-26-2009, 04:09 PM

Here's the thing of it... just because with this plan they will try to get your PITI to be 31% for your gross income, it doesn't necessarily mean that they will qualify someone regardless of how much their income is and other expenses are. They have to look at the overall picture.

What I am trying to say and what LHarvery was trying to convey is... what if your income was $1000 a month does that mean that they would take your payment down to $310... I don't think so, they will still look at how much income you bring in vs how much you owe on your house and other expenses and if it is realistic for them to modify given your overall situation.

rjy53 · 04-01-2009, 11:43 AM

I have been tring to get a loan mod. from WF since early January of this year. I have sent them all the info they have asked for and have been told after weekly calls to just wait for a case manager to be put on my case file. I went 2 months in the rear and then went current in March. I am about to get behind again and not one time has anyone from WF given me any options. I dont even know if their even looking into it. who do you call in what dept. to get some answers. I believe the process has not even been started. I am unemployed since 1/9/09 and only recieve 1500.00 a month unemployment. My house payment is 1250.00 a month. I know I should be able to get a home mod. because I passed the general guide lines of the Obama plan. Whats up.

rjy53 · 04-01-2009, 11:59 AM

How do I find out if the investor on my loan is fanny mae

Moe Bedard · 04-01-2009, 02:22 PM

Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Borrowers will provide or enter information to determine if either agency owns or securitized the loan. This information is not a guarantee of eligibility for the refinance program, as other qualifying criteria must also be met.

• For Fannie Mae,
1-800-7FANNIE (8am to 8pm EST).
Fannie Mae Loan Lookup tool

• Freddie Mac
1-800-FREDDIE (8am to 8pm EST)
Freddie Mac - Avoiding Foreclosure

rjy53 · 04-01-2009, 03:27 PM

Who do I call in what dept.to see if anything is being done.

Moe Bedard · 04-01-2009, 06:31 PM

For Wells Fargo..............
1-800-678-7986

Here is the link to the info for the new program........
https://www.wellsfargo.com/mortgage/.../stabilityplan

rjy53 · 04-02-2009, 11:54 AM

Thank you very much, I do have a Freddie Mac backed loan. I will give the number you posted for WF a try.

03-26-2009, 07:19 AM	#1 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	WF loan mod. run around Does your credit score have anything to do with getting your loan modifcation. We have a WF loan on our house and have been trying for months to get our home loan lowered. We paying 1250.00 a month and feel like its taking forever. I lost my job after 20 years in January of 2009. We called them the day it happen and been sending them every piece of info they requested. We got behind right away but was then able to catch back up tax return. Still waiting for a case manager to start working on our paper work. Based on Obama plan my payment would be around 462.00 a month which I know we could handle. My house is still worth more then I owe and I have a good interest rate of 5.5 on a 15 year loan.

03-26-2009, 07:23 AM	#2 (permalink)
Dan Bailey Loan Safe Moderator & Homeowner Guide Join Date: May 2008 Location: Wilmington NC Posts: 1,407 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score rjy53 Glad you found the forum and posted, In answer to your question-credit score does not affect modification ability. __________________ Loansafe saved my home!! I may be alot of things, but I do know the difference between reply and forward.

03-26-2009, 08:54 AM	#3 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score Thank You. What is the avg wait time on how long it takes to get WF moving on trying to get you help. I am current on my loan right now, but without a job and trying to live on unemployment its only a matter of time before I am behind again.

03-26-2009, 09:39 AM	#4 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score rjy53, what are your prospects for getting another job in the near future? I don't know how much unemployment income you are receiving, but if it isn't enough to cover the cost of a modified loan, then you might not get approved. With a current 5.5% interest rate - a very good rate already - there isn't much room to go down, and so it would be very difficult to get your payments cut by over 60%. Extending your loan term out to 30 years will help a little, but I seriously doubt that it will drop your payments by that much.

03-26-2009, 11:07 AM	#5 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score Here my short story to try and get the best info. we have lived in our home for over 25 years. In 2006 we refi a 15 year fixed loan for 110.000 at 5.5 %. We had issues from the start with the 1250.00 dollar a month payments but was just getting by as other bills would get behind we would borrow from peter to pay paul. I had a salary job that payed me about 56.000 a year and I had been with the company now just short of 20 years. I got layed off on 1/9/2009 and collect around 1490 a month from unemployment. This is less then what I was bring home every two weeks when I was working. I got paid every two weeks when I was working. I worked as a supervisor for a auto part supply company. Well here in Michigan we know that cars are not selling and I could be out of work for awhile. I am thinking until around the middle of 2010 at less. If I can get WF to give me a home loan mod to cut my payments in half by lowering my interest some and moving my loan out to a 30 year fixed I will be able to keep my payments current with just what I am getting from unemployment now and when I get back to work I may even be able to double up from time to time. Based on Obama 31 % debt to income my house payment right now is 82% of my income. 31% would be 462.00 a month. I could more then live with that and even if push came to shove I could even take a job paying me less then what I was making and still be OK. I just need for WF to start working with me on my file. I still owe 93.000 on my current loan with my house worth down to around 125.000 as of today. When I took out the loan it was worth 180.000. Well my question is should I continue to make my payment in hope they will soon get to my file or hold back on my payments and keep that money put away and force the issue.

03-26-2009, 12:18 PM	#6 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score That $1250 must include real estate tax and insurance. $110,000 at 5.5% amortized over 15 years equals about $900 for principal and interest. That means that your tax and insurance come to about $350 per month. Is this accurate? Here's the problem. The real estate tax and insurance may not change very much, if at all. Depending on what your county has assessed your home for, it might be possible to get a cut on your real estate tax. However, Michigan does have a pretty high average property tax rate, so a cut in assessment by $50,000 could save you $1000 a year in taxes. If you were to have the current balance ($93,000) re-amortized over 30 years at 0% (an unheard-of scenario), you payments would still be $260 per month. Add this to the property tax and insurance (let's say it does get cut to $250 per month), and your monthly payment will still be in excess of $500. If your interest rate were cut to 2.5% - still very optimistic, but not impossible - your monthly principal and interest would be about $367. Your total PITI (principal, interest, taxes, and insurance) would still represent about 41% of your unemployment income. Nevertheless, that would be loads better than what you're shelling out now. So basically, your current unemployment income might not sufficient to qualify for a loan modification, which is why I asked my original question about your being able to find another job. Still, it doesn't hurt to try. Good luck.

03-26-2009, 01:51 PM	#7 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score Well for the last 38 years covering 3 total jobs I have found myself employment in Metal Stamping companies. At this time in my life I find these jobs very hard to find due to the state of all the auto related companies being in a major down turn at this time. I do believe the need for supervision in these types of plants will start to return in the next year or so and that I will be called back to my old job or be hired by one of the companies that made it through these bad times. I am now looking into other areas of production supervision out of the metal stamping field where I may be able to find employment. I am also looking into a few of the training classes for new job skills offer in the state of Michigan. This is all very new to me because other then a few months back in 1980 I have never been unemployed. This is only the second time in my life that I ever collected unemployment.

03-26-2009, 02:56 PM	#8 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score What I was trying to say is that it doesn't hurt to try to get a modification. But just keep in mind the possible roadblocks that you may encounter.

03-26-2009, 03:11 PM	#9 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score I understand, just did not want you to think I was a lazy SOB. I need to know everything that WF is going to take into account and what will help me and what will hurt me. I just know I need to get this process started and these payments under some kind of control. This way I can start to get some kind of direction as to what I am going to do. What should I do about making payments. Alot of people have told me they have stopped making payments to their banks and started putting that money aside in a effort to try to get the banks to work with them more quickly. Do you think that will help.

03-26-2009, 04:08 PM	#10 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score I certainly did not get the impression that you are a lazy SOB. The standard advice here is that if you are able to make your payments, then you should continue to do so. But if making payments means that you are accumulating other debt - credit card debt, for example - then you might have no choice but let yourself become late on your mortgage. Being late is not a prerequisite for a loan modification. A hardship is. Have you gotten started on a hardship letter? People often post their letters here for feedback.

03-26-2009, 04:09 PM	#11 (permalink)
HopingtoFind Senior Member Join Date: Oct 2008 Posts: 635 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit score Here's the thing of it... just because with this plan they will try to get your PITI to be 31% for your gross income, it doesn't necessarily mean that they will qualify someone regardless of how much their income is and other expenses are. They have to look at the overall picture. What I am trying to say and what LHarvery was trying to convey is... what if your income was $1000 a month does that mean that they would take your payment down to $310... I don't think so, they will still look at how much income you bring in vs how much you owe on your house and other expenses and if it is realistic for them to modify given your overall situation.

04-01-2009, 11:43 AM	#12 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	WF loan mod. run around I have been tring to get a loan mod. from WF since early January of this year. I have sent them all the info they have asked for and have been told after weekly calls to just wait for a case manager to be put on my case file. I went 2 months in the rear and then went current in March. I am about to get behind again and not one time has anyone from WF given me any options. I dont even know if their even looking into it. who do you call in what dept. to get some answers. I believe the process has not even been started. I am unemployed since 1/9/09 and only recieve 1500.00 a month unemployment. My house payment is 1250.00 a month. I know I should be able to get a home mod. because I passed the general guide lines of the Obama plan. Whats up.

04-01-2009, 11:59 AM	#13 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WF loan mod. run around How do I find out if the investor on my loan is fanny mae

04-01-2009, 02:22 PM	#14 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WF loan mod. run around Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Borrowers will provide or enter information to determine if either agency owns or securitized the loan. This information is not a guarantee of eligibility for the refinance program, as other qualifying criteria must also be met. • For Fannie Mae, 1-800-7FANNIE (8am to 8pm EST). Fannie Mae Loan Lookup tool • Freddie Mac 1-800-FREDDIE (8am to 8pm EST) Freddie Mac - Avoiding Foreclosure __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-01-2009, 03:27 PM	#15 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WF loan mod. run around Who do I call in what dept.to see if anything is being done.

04-01-2009, 06:31 PM	#16 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WF loan mod. run around For Wells Fargo.............. 1-800-678-7986 Here is the link to the info for the new program........ https://www.wellsfargo.com/mortgage/.../stabilityplan __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-02-2009, 11:54 AM	#17 (permalink)
rjy53 Member Join Date: Mar 2009 Posts: 9 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WF loan mod. run around Thank you very much, I do have a Freddie Mac backed loan. I will give the number you posted for WF a try.

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