Modification lingo Grossing up

[ngramm]

I was prequalified for a Wells Fargo modification after 5 months. I owe 145000 on my mortgage.
I receive $1550.00 per month on SS and 1700.00 on NY state unemployment.
When I received my paperwork it stated that my monthly payment would be $1232.00 after the modification. I calculated about $1008.
When I questioned Wells Fargo preidential offices I was told my income needed to be Grossed up to 3900.00 because my income is tax exempt.
I pay taxes on my unemployment but evidently not on my SS. They are trying to explain that my income needs to be "grossed up" by an extra 25%. making it somewhere in the vacinity of 3900.00 a month.
They are telling me my income is equal to $46,800 because SS is tax exempt.
However, unemployment is not exempt.
Please help me understand this.
Thanks

[ugh_2009]

wow. Wells Fargo sure is creative. Try calling HOPE Now - HOPE NOW - Support and Guidance for Homeowners

They should be able to answer if this is correct procedure and will actually talk to Wells Fargo for you.

[ngramm]

Just got off the phone with Dan at Hope and they have no idea if that is correct and suggested I call Wells Fargo:-(
What next?

[Murray12]

Is this a fannie or freddie loan. Below is what I found on efanniemae.com

Determining Gross Monthly Income
The borrower’s “monthly gross income” is the borrower’s income amount before any payroll deductions and includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payments, including Social Security received by adults on behalf of minors or by minors intended for their own support, and monthly income from annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income. If only net income is available, the servicer must multiply the net income amount by 1.25 to estimate the monthly gross income.


If the borrower has other income such as social security, disability or death benefits, or a pension:
Acceptable documentation includes letters, exhibits, a disability policy or benefits statement from the provider that states the amount, frequency and duration of the benefit. The servicer must determine that the income will continue for at least three years, and The servicer must obtain copies of signed federal income tax returns, IRS W-2 forms, or copies of the two most recent bank statements.

[ngramm]

Thanks, your info is correct. However, they are trying to tell me that because SS is not taxable in NY they need to multiply my total SS benefit (1550) by 1.25 which comes to $1938.
They have also multiplied my unemployment,which is 1700.00 before taxes by 1.25 which comes to 2125. So I know the unemployment shouldn't be multiplied because 1700.00 is the gross.($425.00 per week)
Now they are saying that my income is not $3250.00 but $4063.
I actually am receiving 1700.00 which is the gross for unemployment and $1550 which is not taxable.
Instead of a modification to 31.1% of 3638. they are using 31.1% of 4063. so $1131 vs.$1263 may seem small but the difference means alot to me. Can I ask for a lower payment?

[Murray12]

Something doesn't seem right here. Is this a fannie/freddie loan? Is this the HAMP program or their own in house program?

Gross income is gross income. If your SS income is not taxable than it would appear to me that this should be used for your gross income.

I would try a different HOPE counselor, perhaps someone can call Wells Fargo with you on the line.

[ngramm]

This is the hamp program. It is a Fannie Mae loan.

[Murray12]

How much is your weekly unemployment check for? How much is your weekly SS check for, or is this paid monthly?

You are in a tough spot, because if you fight the payment then who knows how long the delay will be and you have to worry about unemployment benefits running out. I am in a similar situation. Are you sure you would still qualify if your income wasn't grossed up? What is the modified interest rate?

If you accept the HAMP, you can fight with them during the trial payment time. It just depends how important that difference is to you.

[Murray12]

Received this email from a complaint I had...

In order to better assist you, please call our Resource Center at 1-800-7FANNIE (1-800-732-6643) Monday through Friday, between the hours of 8 a.m. and 9 p.m., Eastern Time.
Fannie Mae Resource Center

[ngramm]

Wells Fargo is speaking to Fannie mae this morning in my behalf. My unemployment is 425.00 gross weekly my SS is 1550 monthly. They never discussed rate with me.

[Murray12]

Check your unemployment calculation. I can post a more detailed explanation if you want.

[ngramm]

Please do.

[Murray12]

Your weekly unemployment income is $425, so the calculation for monthly is

($425 * 52 weeks in a year)/12

The way you calculated it is $425 * 4, there aren't exactly 4 weeks in every month.

[ngramm]

I see. I have told them the truth. I can afford 1000 to 1050 a month for my payment. I am waiting for their response and I will let you know. I hope this turns out well. Thanks for your information.
Good luck to all who need help.

[Murray12]

Good Luck, and let us know how it turns out. Other people may have the same question and end up here via a Google search etc.

[ngramm]

Dear Mr. President,
I qualified for a modification under your new plan and I thank God.
The only problem that I have is with Freddie Mac grossing up (adding 25%) my income which is 1700 gross unemployment and 1550.00 SS. I have been given a payment of $1232.00 a month by Wells Fargo for my mortgage, which is more than 31%.
Wells Fargo and FreddieMac insist that I add 25% to these gross amounts. Why do they insist on adding 25%? Is this right and legal? I can afford to pay 1000 to1050 a month. My original payment is $1377.00 which includes P and I and homeowners insurance. FreddieMac was contacted by Wells Fargo and they will not change their minds. I should pay about $1061 according to your plan Making Homes Affordable.
I feel and I know you feel that these giants got substantial help. Why are they now not extending the same help to us? I am a staunch supporter of your administration.
I have lived here for 35 years. Please help.

[ngramm]

I got ahead of myself. I just want to know if money that I pay taxes on can be grossed up by 25% in modifications. I am sure many people applying are on SS and or unemployed. Has this happened to anyone else? Is it legal?