WF loan modification vs. payment plan

[sunil707]

Hello Forum – This is my first mail to this forum. I am watching this forum for past few weeks since I came to know about. It’s really a big help in understanding the overall loan modification process.

My case:
Loan from Wells Fargo
Initial monthly payments: $1437.19

I lost my job in December last year and since then I am having a severe financial hardship. Only I know as to how am I making loan payment since then without any default.

In March, for the first time, I came to know about Obama’s loan modification program. As suggested in the program, I contacted local HUD approved counselor (a big mistake). They sent my financials to Wells Fargo. So far I have dealt 4 different people at counselor and none of them know the total plan. The only thing they were doing is to fax papers to Wells Fargo and follow what WF had to say. None of them seems to be my counselor but looks like they work for Wells Fargo. Even I have to call WF about the next steps to be taken or weather they received the FAXes or not etc etc…

Long story short: we sent revised financials to WF last month and based on that they gave me a payment plan of $968.27/month starting from 07/01/2009 until 12/01/2009. Also per the letter I received from them indicates that I have to pay all amounts that are being paid less for next six months, on 01/01/2010 i.e. $4,250.71.

Have couple of questions/concerns:
1) I have sent financials for loan modification, but why did WF not consider the modification. Please note that my expenses shown to WF were about 10% more then the income. Did it make any difference?
2) Why WF asking me to have new payment arrangement to follow for next 6 months and not for next 3 months only?

The letter w/ all details from WF was dated 06/03/2009.

After I received the letter, I called WF and asked same questions. They told me that my current financials did not allow a loan modification. When asked if it was because of my current expenses being more than my income, they told me that it could be the reason also, but they gave me no concrete answer.

I have recently received property tax papers from my county. This detail was not in my original financials sent to WF. The average monthly tax is about $376.00/month. This is an addition to already existing financial hardship.

More questions:
1) Should I send the revised financials to WF with showing total monthly expenses less then the total income along w/ property tax info, with a request for reconsideration of loan modification?
2) What do I w/ the paper that I received from WF? Should I sign and send back to WF? Will doing this not stop WF further considering for loan modification?
3) If I sign and send the new arrangement, will they still consider my loan modification and not wait for next 6 months?

Final note – I am planning to stop services from my current HUD counselor as it only creates more confusion. Is this OK for me to spaek to WF by myself?

Thanks a ton in advance for you guidance…

Sunil

[newbaby08]

i am suprised that they gave you 6 month payment plan usually it is only 3 months and then the balloon payment and then you try for the perm mod.

i am working with them now since we finished the 3 month but feel like my wheels are spinning. i actually starting working for the mod back in dec 08 so it takes time.

just keep calling them.

[sunil707]

In general - do they disclose all details at first shot abt entire payment plan? e.g. 3/6 months payment plan, what would be the interest rates in future, balloon payment etc etc?

[sunil707]

One more question - I am planning to fax details my income as $3720 and exp $3396.00 (this includes ($1966.00 as mortgage/tax/HOA fees).

Will WF condider this new info for loan modification?

[newbaby08]

in the letter it stated never what the interest rate was, only that i had to make the 3 payments of 785.00 and then the balloon payment of 7500 and then the mod would be next. but we never paid the balloon of course, just waiting but now like i stated i think they are going to give us a new 3 month and then the mod so i am now wondering are they going with the 6 month and then the mod... sounds like that to me keep inmind i have been trying since dec so i have a lot of time taken up with this.