Well Fargo Loan Modification - Help - Loan Modification Forum

HouseMama · 03-06-2009, 05:12 PM

Hello,

My husband and I built our house and moved in Sept 2008. It took us 5 weeks to complete our loan process from a construction loan to a permanent loan because the appraisal went down 25% from the beginning of our project.

After many sleepless nights we finally got our second which is an Equity Line of Credit approved (this was the issue due to the LTV). Anyway we still needed to bring a significant amount of cash to the table to complete the loan. The WF sales manager suggested we use any "extra cash", credit cards, 401K, Stock, you name it. We did. We used our daughter's college fund, depleted all of our cash, used credit cards, stock, took a 401K loan.

When we were to make our first payment on our first and equity line of credit we noticed that the equity line of credit was triple what we were promised. It took 3 weeks for our WF sales representative to fix it and we never signed any new paperwork. The payment is correct today.

Due to the economy and all of our credit card debt, 401K loan etc we are making our payments, however it is very tight and at this point there is no sight it getting rid of our credit card debt with simply making the minimum payment.

We applied with Hope Now in November and didn't get anywhere because we are making our payment.

We applied for a Loan Modification with Wells Fargo in January and they declined us and told us to refinance. We tried to refinance through Wells Fargo, and private etc. and were told that since our LTV isn't there we are unable to refinance.

When I asked why Wells Fargo denied our Loan Modification application, they said we don't qualify for a Modification. It took me 6 weeks to get the true answer. They used THE WRONG NUMBERS FROM WELLS FARGO and a credit report. They used the incorrect number from the Equity Line of credit, they had another Wells Fargo Mortgage on there which isn't ours, they had our credit card financial obligation at $1600 per month which isn't correct and didn't have our investment property on there. Bottom line the representative in the Executive Offices was very remorse and apologized.

So we are completed the Hardship letter again, the financials, and all of the other documentation they require.

Questions:

1) Has anyone had any success with Wells Fargo Executive Offices?
2) How do you know if your Wells Fargo loan is held by Fannie May or Freddi Mac?
3) Does it sound fishy that the loan amount that we were suppose to have was triple and corrected, however when they pulled the numbers it was incorrect? Should we do anything about this?
4) Any tips for Hardship letter?
5) Does the new Obama plan 105% LTV include Jumbo loans?

Thanks!

HouseMama · 03-06-2009, 10:09 PM

Hello everyone,

Can anyone please explain the target (President Obama's stimulus plan) of 31% of income? Is this gross or net and is this including taxes and insurance?

Wells Fargo stated they look at net income.

Thank you.

FireandRain · 03-06-2009, 10:31 PM

GROSS INCOME not NET INCOME..
The aim is for your monthly payments (not including private mortgage insurance) to reach 31% of your pre-tax monthly income. The monthly payments are defined as payments on the principal, interest, taxes, insurance (not including mortgage insurance) and homeowners association/condo fees.
First, the lender will reduce the interest rate to no less than 2% on the loan so that the monthly payments are less than 38% of your monthly income. Then, the Treasury will match further reductions, dollar-for-dollar, with your lender, to bring the monthly payments down further, to 31% of your monthly income.
If you keep your payments on time after the modification, the government will pay up to $1,000 each year in the first five years toward reducing the principal on your mortgage.
After five years, the interest rate on the loan will start to increase by no more than 1% per year, but can’t go higher than what the market rate was (as determined by Freddie Mac) on the day your loan was modified.

Moe Bedard · 03-06-2009, 10:34 PM

Hi HouseMama,

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

For the 31% target, this is what they use............

Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation.

To be eligible for a Home Affordable Modification, a borrower must:

• be an owner-occupant in a one to four unit property, and have
• an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties, consult the Guidance for limits),
• a loan that was originated before January 1, 2009,
• a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of the borrowers' gross monthly income, and
• have experienced a significant change in income or expenses, to the point that the current mortgage payment is no longer affordable.

In answer to the other questions..............

Yes....the executive team number that I have posted to members has been able to help them...........

FannieMae or FreddieMac? Check Here to Find Out

These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

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.

click on the link for examples............
Examples of a Hardship Letter

The 105% criteria is for the refinance only in which the loan would need to be backed by either FannieMae or FreddieMac...............

The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less.

Wells Fargo ERT
1-800-853-8516

HouseMama · 03-06-2009, 10:43 PM

Thank you Fire and Rain and *** for your replies.

I am speaking with Wells Fargo executive offices, do you know any success stories with people who have been on time with a Jumbo loan, however due to income decrease and economy have successfully completed a Loan Modification? We are unable to refinance like many people because we have lost 30% are our two loans = the value of the property. Does that make sense? Thanks

Moe Bedard · 03-06-2009, 10:55 PM

all of the success stories are located here........the name of the lender is in the thread title............

Success Stories - Homeowners Who Fought Back & Won - Loan Modification Forum - Loan Safe

HouseMama · 03-09-2009, 12:27 PM

Hello,

I am looking for feedback for my hardship letter to WF. We are current and are on our second go around for a Loan Modification.
--------------------------------------------------------------------------------
We began our new construction loan process in March 2007. In June 2007 our house was appraised at $2,000,000. In September 2009, while we were in the process of converting from a construction loan to a conventional loan, our property value decreased to $1,740,000. In order to close on our loan we were required to bring and unforecasted additional amount to the table of approximately $110,000.

We had to deplete all of our cash reserves, take a loan against our 401K, deplete our daughters college fund, cash in all our
stock, and max out our credit cards. We were reluctant to do this at the time,but our Wells Fargo loan officer assured us we would be able to refinance within a few months. Now, due to the high ratio of loan to value, we have now been told we are unable to
refinance. Our property is now worth an estimated $1,400,000.

We are now is a very precarious financial position. We have depleted our reserves, and we are struggling to meet our financial obligations. At this point we feel it will take many years to pay off our huge credit card debt.

HouseMama has Multiple Sclerosis, which is a chronic neurological illness. With all of the stress, she has been experiencing more symptoms. If for some reason it continues then we will
require additional medical care and care for our daughter. If this happens, we will not be able to meet our obligations. For this reason we are seeking a Loan Modification to ease our financial stress.

We pride ourselves on meeting our financial obligations on time, living within our means, and saving for the future. We believe we were acting within our principles when we undertook this project, otherwise we would not have put our family in financial jeopardy.

-------------------------

Thank you for everyone's feedback.

Moe Bedard · 03-09-2009, 12:35 PM

the letter is missing these key components to helping with a modification.

* 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.

Please keep all questions and updates here in your original thread........it makes it easier to answer and follow your story in one place.

HouseMama · 03-09-2009, 12:54 PM

Thanks *** for your feedback...here is my revised letter...

-----------------------------
We began our new construction loan process in March 2007. In June 2007 our house was appraised at $2,000,000. In September 2009, while we were in the process of converting from a construction loan to a conventional loan, our property value decreased to $1,740,000. In order to close on our loan we were required to bring and unforecasted additional amount to the table of approximately $110,000. We had to deplete all of our cash reserves, take a loan against our 401K, deplete our daughters college fund, cash in all our stock, and max out our credit cards. We were reluctant to do this at the time,but our Wells Fargo loan officer assured us we would be able to refinance within a few months.

Now, due to the high ratio of loan to value, we have now been told we are unable to refinance. Our property is now worth an estimated $1,400,000.

We are now is a very precarious financial position. We have depleted our reserves, and we are struggling to meet our financial obligations. At this point we feel it will take many years to pay off our huge credit card debt.

HouseMama has Multiple Sclerosis, which is a chronic neurological illness. With all of the stress, she has been experiencing more symptoms. If for some reason it continues then we will require additional medical care and care for our daughter. If this happens, we will not be able to meet our obligations. For this reason we are seeking a Loan Modification to ease our financial stress.

We have reduced our expenses by $1,785 per month and have sold additional stock to pay off additional debt. We have stopped all use of credit cards so no additional credit card debt is being accrued. We have renegotiated our credit cards to lower the interest rates. We have cut our utility bills by 20%.

We plan to keep ourselves on our new revised budget and do everything we can to meet all of our financial obligations.

We pride ourselves on meeting our financial obligations on time, living within our means, and saving for the future. We believe we were acting within our principles when we undertook this project, otherwise we would not have put our family in financial jeopardy.

We appreciate your assistance, and look forward to working together toward a mutually beneficial solution.

Moe Bedard · 03-09-2009, 01:21 PM

much better.............but can you please keep posts here in your original thread............thanks

HouseMama · 03-09-2009, 02:35 PM

Thanks...sorry for the second post...

HouseMama · 03-16-2009, 06:36 PM

***,

I just got a solicitation call tonight from a company. I thought it was strange. It was a call center and they stated that they believed that we could possibly be a candidate for a loan modification and that we could "predatory lending" involved with our lender. They charge $5,500 and ask for half upfront and then the remainder when they are complete.

Have you heard of this company or any similiar? I kept asking how they got our number and information and she was vague and said they work with lenders etc. She also stated that in April President Obama will be coming out with more options for people who are paying their loan, however are very tight.

I appreciate any feedback. I am still working with the WF Exec offices.
Thanks.

Moe Bedard · 03-16-2009, 07:42 PM

Your loan information is of public record...............so any scammers can get their hands on it.................stay the course and work with the executive team and don't speak with anyone that contacts you through any medium talking about loan modifications or even refis.

HouseMama · 03-16-2009, 09:12 PM

***,

Thank you. That is what I thought.
HouseMama

HouseMama · 04-06-2009, 10:24 PM

Has anyone heard any updates with the government helping people with Jumbo loans? We are still trying to work with WF on a Loan Modification and are in California. Thanks.

Moe Bedard · 04-07-2009, 08:04 AM

The loan to value cap for the modification is from the FHFA limits.............they have not changed that. It is up to the investors on the jumbo loans as to whether or not they will modify..............we have seen modifications being done on jumbo loans.

HouseMama · 04-07-2009, 05:47 PM

Thank you ***,

This is so frustrating. Wells Fargo says they will respond by April 6th. And nothing comes in the mail. They declined our first response using incorrect financial numbers. It seems they are simply running us around so to exaust us so we will give up.

We won't give up and I am so grateful to this website. Thank you everyone for this site and invaluable information.

HM

kat10 · 04-07-2009, 09:30 PM

Housemama,
Since you and I are involved w/ WF can you do me favor? Would you ask your WF rep if WF is offering loan mods w/ rate reductions and term extensions or just term extensions if a loan that is backed by Freddie Mac?
We were just offered a mod by WF and it is for extension only.
thanks
k

HouseMama · 04-07-2009, 09:57 PM

Hello kat10,

I am happy to help any and all other Wells Fargo customers. Do you have a jumbo loan and which state are you in?

HM

kat10 · 04-08-2009, 02:50 PM

HouseMama,
Thanks in advance for your help.
We do not have a jumbo loan. Our loan is a fixed 15/6% /$160k balance. With 12 years left on the note. Our home is a manufactured/modular home that is built on a foundation. I don't think so much the type of house had anything to do w/ just a term extension. He said that WF wasn't offering rate reductions at all, just term extensions. I wonder if it was because we are already on a 15 yr note?
I will ask more questions of my rep once the loan mod doc's arrive but it will be interesting to hear what your guy says.
cheers
k

HouseMama · 04-08-2009, 08:35 PM

kat10,

When I spoke with Wells Fargo, Executive office, they were vague in committing to what they would offer. They did not say "no" when I prodded, and did not say "yes". I believe it was because the last conversation I had was prior to President Obamas new guidelines and plan to assist homeowners who are "under water". And things are changing so rapidly that quite honestly, they don't know.

From all of the research I have found so far, you are in a better place that I simply because your loan is not Jumbo. I am not an expert by any means, however it seams the key here is what the "hardship" is and being persistent. I haven't found any success stories with WF and a Jumbo loan. It seems that WF is still holding on tight, however there are some modification success stories.

When you say term length. Are they willing to extend your loan to make your payments less? And what state do you live in?

HM

kat10 · 04-08-2009, 09:02 PM

Hey mama,
Thanks again for asking. Yes things are changing daily. In regards to WF, I was told today that they are one of the tougher players but with Obama's new plan, they have no choice but to start playing. They are still trying to use inflated property values so they don't have to meet the 105%. A true BPO (a market comparision) which is required normally will show what the property is worth in todays market.
The AH program is for homes up to $729K. Does your fit under that $$ value?
WF was willing to extend the length of our loan from 15 to 30yrs, but with no rate reduction. The payment would drop about 1/4. If we get a rate reduction included, we should be able to get down almost 1/2 which would be 31% of our net pay--The gentleman with whom I spoke with today said I should push for all three. Extension of term length, interest rate reduction AND a principle reduction. I may turn down their first offer and request they follow the plan that is being ordered by the President.
I think you're right about being persistant. I'd also add.. keeping really good notes.
Oh, I live in California. Southern Cal. San Diego County.
kat

HouseMama · 04-12-2009, 09:59 PM

Hello,

Has anyone used the media to "air" their case and get some movement with the banks? And if so, who did you use (CNN, Anderson Cooper, etc.)? Thanks... looking for some movement.

HM

HouseMama · 04-12-2009, 11:01 PM

I believe I read someone threatened to contact Lou Dobbs of CNN and got a response from their bank within 24 hours. Thanks to all. HM

Believe · 04-13-2009, 11:42 AM

I can't answer your specific question, but I can tell you this. I have e-mailed Lou Dobbs many, many times, and I have never received a response.

03-06-2009, 05:12 PM	#1 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Well Fargo Loan Modification - Help Hello, My husband and I built our house and moved in Sept 2008. It took us 5 weeks to complete our loan process from a construction loan to a permanent loan because the appraisal went down 25% from the beginning of our project. After many sleepless nights we finally got our second which is an Equity Line of Credit approved (this was the issue due to the LTV). Anyway we still needed to bring a significant amount of cash to the table to complete the loan. The WF sales manager suggested we use any "extra cash", credit cards, 401K, Stock, you name it. We did. We used our daughter's college fund, depleted all of our cash, used credit cards, stock, took a 401K loan. When we were to make our first payment on our first and equity line of credit we noticed that the equity line of credit was triple what we were promised. It took 3 weeks for our WF sales representative to fix it and we never signed any new paperwork. The payment is correct today. Due to the economy and all of our credit card debt, 401K loan etc we are making our payments, however it is very tight and at this point there is no sight it getting rid of our credit card debt with simply making the minimum payment. We applied with Hope Now in November and didn't get anywhere because we are making our payment. We applied for a Loan Modification with Wells Fargo in January and they declined us and told us to refinance. We tried to refinance through Wells Fargo, and private etc. and were told that since our LTV isn't there we are unable to refinance. When I asked why Wells Fargo denied our Loan Modification application, they said we don't qualify for a Modification. It took me 6 weeks to get the true answer. They used THE WRONG NUMBERS FROM WELLS FARGO and a credit report. They used the incorrect number from the Equity Line of credit, they had another Wells Fargo Mortgage on there which isn't ours, they had our credit card financial obligation at $1600 per month which isn't correct and didn't have our investment property on there. Bottom line the representative in the Executive Offices was very remorse and apologized. So we are completed the Hardship letter again, the financials, and all of the other documentation they require. Questions: 1) Has anyone had any success with Wells Fargo Executive Offices? 2) How do you know if your Wells Fargo loan is held by Fannie May or Freddi Mac? 3) Does it sound fishy that the loan amount that we were suppose to have was triple and corrected, however when they pulled the numbers it was incorrect? Should we do anything about this? 4) Any tips for Hardship letter? 5) Does the new Obama plan 105% LTV include Jumbo loans? Thanks!

03-06-2009, 10:09 PM	#2 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Can you please explain 31% of income for Modification? Hello everyone, Can anyone please explain the target (President Obama's stimulus plan) of 31% of income? Is this gross or net and is this including taxes and insurance? Wells Fargo stated they look at net income. Thank you.

03-06-2009, 10:31 PM	#3 (permalink)
FireandRain Senior Member Join Date: Jan 2009 Posts: 72 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help GROSS INCOME not NET INCOME.. The aim is for your monthly payments (not including private mortgage insurance) to reach 31% of your pre-tax monthly income. The monthly payments are defined as payments on the principal, interest, taxes, insurance (not including mortgage insurance) and homeowners association/condo fees. First, the lender will reduce the interest rate to no less than 2% on the loan so that the monthly payments are less than 38% of your monthly income. Then, the Treasury will match further reductions, dollar-for-dollar, with your lender, to bring the monthly payments down further, to 31% of your monthly income. If you keep your payments on time after the modification, the government will pay up to $1,000 each year in the first five years toward reducing the principal on your mortgage. After five years, the interest rate on the loan will start to increase by no more than 1% per year, but can’t go higher than what the market rate was (as determined by Freddie Mac) on the day your loan was modified.

03-06-2009, 10:34 PM	#4 (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: Well Fargo Loan Modification - Help Hi HouseMama, Welcome to the forum and thank you for joining............. For the 31% target, this is what they use............ Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation. To be eligible for a Home Affordable Modification, a borrower must: • be an owner-occupant in a one to four unit property, and have • an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties, consult the Guidance for limits), • a loan that was originated before January 1, 2009, • a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of the borrowers' gross monthly income, and • have experienced a significant change in income or expenses, to the point that the current mortgage payment is no longer affordable. In answer to the other questions.............. Yes....the executive team number that I have posted to members has been able to help them........... FannieMae or FreddieMac? Check Here to Find Out These are what most lenders consider to be generally acceptable hardships.... 1. Loss of job or reduction in income 2. Death of the homeowner, spouse or family member 3. Illness of homeowner or family member 4. Divorce or separation 5. Forced job relocation by employer 6. Adjustable rate reset-payment shock 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. click on the link for examples............ Examples of a Hardship Letter The 105% criteria is for the refinance only in which the loan would need to be backed by either FannieMae or FreddieMac............... The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Wells Fargo ERT 1-800-853-8516 __________________ 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.

03-06-2009, 10:43 PM	#5 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Thank you Fire and Rain and *** for your replies. I am speaking with Wells Fargo executive offices, do you know any success stories with people who have been on time with a Jumbo loan, however due to income decrease and economy have successfully completed a Loan Modification? We are unable to refinance like many people because we have lost 30% are our two loans = the value of the property. Does that make sense? Thanks

03-06-2009, 10:55 PM	#6 (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: Well Fargo Loan Modification - Help all of the success stories are located here........the name of the lender is in the thread title............ Success Stories - Homeowners Who Fought Back & Won - Loan Modification Forum - Loan Safe __________________ 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.

03-09-2009, 12:27 PM	#7 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Wells Fargo Hardship letter - Help Hello, I am looking for feedback for my hardship letter to WF. We are current and are on our second go around for a Loan Modification. -------------------------------------------------------------------------------- We began our new construction loan process in March 2007. In June 2007 our house was appraised at $2,000,000. In September 2009, while we were in the process of converting from a construction loan to a conventional loan, our property value decreased to $1,740,000. In order to close on our loan we were required to bring and unforecasted additional amount to the table of approximately $110,000. We had to deplete all of our cash reserves, take a loan against our 401K, deplete our daughters college fund, cash in all our stock, and max out our credit cards. We were reluctant to do this at the time,but our Wells Fargo loan officer assured us we would be able to refinance within a few months. Now, due to the high ratio of loan to value, we have now been told we are unable to refinance. Our property is now worth an estimated $1,400,000. We are now is a very precarious financial position. We have depleted our reserves, and we are struggling to meet our financial obligations. At this point we feel it will take many years to pay off our huge credit card debt. HouseMama has Multiple Sclerosis, which is a chronic neurological illness. With all of the stress, she has been experiencing more symptoms. If for some reason it continues then we will require additional medical care and care for our daughter. If this happens, we will not be able to meet our obligations. For this reason we are seeking a Loan Modification to ease our financial stress. We pride ourselves on meeting our financial obligations on time, living within our means, and saving for the future. We believe we were acting within our principles when we undertook this project, otherwise we would not have put our family in financial jeopardy. ------------------------- Thank you for everyone's feedback.

03-09-2009, 12:35 PM	#8 (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: Well Fargo Loan Modification - Help the letter is missing these key components to helping with a modification. * 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. Please keep all questions and updates here in your original thread........it makes it easier to answer and follow your story in one place. __________________ 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.

03-09-2009, 12:54 PM	#9 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Wells Fargo Hardship letter Thanks *** for your feedback...here is my revised letter... ----------------------------- We began our new construction loan process in March 2007. In June 2007 our house was appraised at $2,000,000. In September 2009, while we were in the process of converting from a construction loan to a conventional loan, our property value decreased to $1,740,000. In order to close on our loan we were required to bring and unforecasted additional amount to the table of approximately $110,000. We had to deplete all of our cash reserves, take a loan against our 401K, deplete our daughters college fund, cash in all our stock, and max out our credit cards. We were reluctant to do this at the time,but our Wells Fargo loan officer assured us we would be able to refinance within a few months. Now, due to the high ratio of loan to value, we have now been told we are unable to refinance. Our property is now worth an estimated $1,400,000. We are now is a very precarious financial position. We have depleted our reserves, and we are struggling to meet our financial obligations. At this point we feel it will take many years to pay off our huge credit card debt. HouseMama has Multiple Sclerosis, which is a chronic neurological illness. With all of the stress, she has been experiencing more symptoms. If for some reason it continues then we will require additional medical care and care for our daughter. If this happens, we will not be able to meet our obligations. For this reason we are seeking a Loan Modification to ease our financial stress. We have reduced our expenses by $1,785 per month and have sold additional stock to pay off additional debt. We have stopped all use of credit cards so no additional credit card debt is being accrued. We have renegotiated our credit cards to lower the interest rates. We have cut our utility bills by 20%. We plan to keep ourselves on our new revised budget and do everything we can to meet all of our financial obligations. We pride ourselves on meeting our financial obligations on time, living within our means, and saving for the future. We believe we were acting within our principles when we undertook this project, otherwise we would not have put our family in financial jeopardy. We appreciate your assistance, and look forward to working together toward a mutually beneficial solution.

03-09-2009, 01:21 PM	#10 (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: Well Fargo Loan Modification - Help much better.............but can you please keep posts here in your original thread............thanks __________________ 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.

03-09-2009, 02:35 PM	#11 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Thanks...sorry for the second post...

03-16-2009, 06:36 PM	#12 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help ***, I just got a solicitation call tonight from a company. I thought it was strange. It was a call center and they stated that they believed that we could possibly be a candidate for a loan modification and that we could "predatory lending" involved with our lender. They charge $5,500 and ask for half upfront and then the remainder when they are complete. Have you heard of this company or any similiar? I kept asking how they got our number and information and she was vague and said they work with lenders etc. She also stated that in April President Obama will be coming out with more options for people who are paying their loan, however are very tight. I appreciate any feedback. I am still working with the WF Exec offices. Thanks.

03-16-2009, 07:42 PM	#13 (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: Well Fargo Loan Modification - Help Your loan information is of public record...............so any scammers can get their hands on it.................stay the course and work with the executive team and don't speak with anyone that contacts you through any medium talking about loan modifications or even refis. __________________ 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.

03-16-2009, 09:12 PM	#14 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help ***, Thank you. That is what I thought. HouseMama

04-06-2009, 10:24 PM	#15 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Well Fargo Loan Modification - Help Has anyone heard any updates with the government helping people with Jumbo loans? We are still trying to work with WF on a Loan Modification and are in California. Thanks.

04-07-2009, 08:04 AM	#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: Well Fargo Loan Modification - Help The loan to value cap for the modification is from the FHFA limits.............they have not changed that. It is up to the investors on the jumbo loans as to whether or not they will modify..............we have seen modifications being done on jumbo loans. __________________ 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.

04-07-2009, 05:47 PM	#17 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Thank you ***, This is so frustrating. Wells Fargo says they will respond by April 6th. And nothing comes in the mail. They declined our first response using incorrect financial numbers. It seems they are simply running us around so to exaust us so we will give up. We won't give up and I am so grateful to this website. Thank you everyone for this site and invaluable information. HM

04-07-2009, 09:30 PM	#18 (permalink)
kat10 Senior Member Join Date: Feb 2009 Posts: 119 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Housemama, Since you and I are involved w/ WF can you do me favor? Would you ask your WF rep if WF is offering loan mods w/ rate reductions and term extensions or just term extensions if a loan that is backed by Freddie Mac? We were just offered a mod by WF and it is for extension only. thanks k

04-07-2009, 09:57 PM	#19 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Hello kat10, I am happy to help any and all other Wells Fargo customers. Do you have a jumbo loan and which state are you in? HM

04-08-2009, 02:50 PM	#20 (permalink)
kat10 Senior Member Join Date: Feb 2009 Posts: 119 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help HouseMama, Thanks in advance for your help. We do not have a jumbo loan. Our loan is a fixed 15/6% /$160k balance. With 12 years left on the note. Our home is a manufactured/modular home that is built on a foundation. I don't think so much the type of house had anything to do w/ just a term extension. He said that WF wasn't offering rate reductions at all, just term extensions. I wonder if it was because we are already on a 15 yr note? I will ask more questions of my rep once the loan mod doc's arrive but it will be interesting to hear what your guy says. cheers k

04-08-2009, 08:35 PM	#21 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help kat10, When I spoke with Wells Fargo, Executive office, they were vague in committing to what they would offer. They did not say "no" when I prodded, and did not say "yes". I believe it was because the last conversation I had was prior to President Obamas new guidelines and plan to assist homeowners who are "under water". And things are changing so rapidly that quite honestly, they don't know. From all of the research I have found so far, you are in a better place that I simply because your loan is not Jumbo. I am not an expert by any means, however it seams the key here is what the "hardship" is and being persistent. I haven't found any success stories with WF and a Jumbo loan. It seems that WF is still holding on tight, however there are some modification success stories. When you say term length. Are they willing to extend your loan to make your payments less? And what state do you live in? HM

04-08-2009, 09:02 PM	#22 (permalink)
kat10 Senior Member Join Date: Feb 2009 Posts: 119 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Hey mama, Thanks again for asking. Yes things are changing daily. In regards to WF, I was told today that they are one of the tougher players but with Obama's new plan, they have no choice but to start playing. They are still trying to use inflated property values so they don't have to meet the 105%. A true BPO (a market comparision) which is required normally will show what the property is worth in todays market. The AH program is for homes up to $729K. Does your fit under that $$ value? WF was willing to extend the length of our loan from 15 to 30yrs, but with no rate reduction. The payment would drop about 1/4. If we get a rate reduction included, we should be able to get down almost 1/2 which would be 31% of our net pay--The gentleman with whom I spoke with today said I should push for all three. Extension of term length, interest rate reduction AND a principle reduction. I may turn down their first offer and request they follow the plan that is being ordered by the President. I think you're right about being persistant. I'd also add.. keeping really good notes. Oh, I live in California. Southern Cal. San Diego County. kat

04-12-2009, 09:59 PM	#23 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help Hello, Has anyone used the media to "air" their case and get some movement with the banks? And if so, who did you use (CNN, Anderson Cooper, etc.)? Thanks... looking for some movement. HM

04-12-2009, 11:01 PM	#24 (permalink)
HouseMama Member Join Date: Mar 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help I believe I read someone threatened to contact Lou Dobbs of CNN and got a response from their bank within 24 hours. Thanks to all. HM

04-13-2009, 11:42 AM	#25 (permalink)
Believe Senior Member Join Date: Feb 2009 Location: Iowa Posts: 365 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Well Fargo Loan Modification - Help I can't answer your specific question, but I can tell you this. I have e-mailed Lou Dobbs many, many times, and I have never received a response.

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