What are some ways to be denied for a loan mod with WF after 90 day trial period?

[CudaMan]

Hello members,

I just joined this forum today and after doing some reading on some of the posts, it seems like not many are being approved for a permanent loan mod with WF. I'll start this off by giving you guys a background around my approval, ask some situational questions and find out what reasons people can be denied. I might answer some of the questions based on what WF representatives have told me. Just looking to get further clarification as we all hear different things.

So I've been in application for a loan mod since Nov '08. Since my loan is Freddie Mac owned, WF finally approved me for a 90 day trial under the Barrack Obama plan. Been in my house for more than 3 years now. Single and on a 7 year ARM which is due to adjust in 4 years at a current rate of 6.375%. Under the trial, so far i'm paying on a 2% interest including principle plus tax & insurance. My previous payment was roughly $1,850 down to $1,336 due 10/01, 11/01 and 12/01 as my last payment.

I'm a little concerned on reasons why loan mods do not get finalized. Here are some of my personal concerns; I work in sales so I get a bonus. Last year was bearish not attaining 100% but this year I've attained 140%. My salary has not changed much but my concern is the bonus. Would I be denied just based on that increase. After my calculations on the dect to income ratio, I'm still at 42% with the increase in bonus. A HUD counselor told me that WF most likely based their decision for a trial period just under my salary and not counting on my bonus. Just looking to see if this is the case if anyone knows if a borrower can be penalized for actually making a little more rather than a decrease in pay. I'm concerned becase the pay stubs that they required for Sept. did not reflect the bonus but if I have to submit another pay stub by December it will show it.

My second concern is that I am entering into a marriage in November. Since I'm still in the trial period at that time, would the WF negotiator deny me due to a dual income? I have my own thoughts regarding this, since I bought the house 3 years ago and have never missed a payment I'm thinking i'm still considered as a single owner. I understant that after a marriage previous possesions are maintained by the individuals therefor separating my spouse during the loan mod application.

These are the two major concerns I have if anyone knows that could be reasons I get denied. I don't know if WF would consider these as an increase in gross income even though our savings have gotten smaller because of bills heading on to the wedding.

Just to wrap it up, WF told me 3 reasons why people may be denied which is late payments on the trial period, significant loss of income or if an individual can actually afford their payments. Sorry for being reptitive, despite my increase in bonus I'm still way above 31% but I'm worried that getting married in November which is in the middle of my trial period could negatively affect my application. Please help with any legal advise or any stories that anyone can relate to. I will keep everyone updated on my status with WF. Thanks and sorry for the long post.

[davephx]

Your marriage "problem" is a bit unique. I hate to say this but...can you delay the marriage?

When you have to finally verify income (in theory after the 2nd payment) the financial info has to be within 90 days so you may have some flexibility with dates if bonus is within that period.

[CudaMan]

Thanks dave,

I was told by WF that they need abother submission of most recent pay stubs come December. If they only required the 90 day pay stub, then the one I submitted for Sept 15 and Aug 30th is fine then. I'm almost positive they are going to require new stubs in Dec.

As for the marriage, I really thought what's yours prior to the nupital is yours. It's moving forward that is split down the middle. I'm thinking my property will be treated as mine. But who knows anymore, I'm still looking for what crystal ball.

[Jule215]

Just don't mention your recent marriage.

[Sacdude]

There is no need to show that you are married. That will reflect in your taxes but your loan mod will be permanent by then. Again, this is just an advise. Also, its voluntary to give information of anyone who is not on the loan. As per HAMP guidelines, you are NOT required to include your spouse's income if she is not on the loan.

As per HAMP Notes - "Gross Monthly Income: is the total income of all borrowers who signed your mortgage before any taxes or other deductions are made. If more than one person signed your mortgage, such as your spouse or a co-signer, add the gross monthly income of all borrowers and enter this amount"

Here is a link to prove that

Making Home Affordable - Modification Evaluator

I am sort of in the same situation. My wife lives/works 4 hours away and she is not on the mortgage. She cant find a job here so I have not disclosed her information as I am not required to.

[CudaMan]

Sacdude,

thank you for your detailed reply and the quote from the website. That should definitely help me out as a reference if it ever becomes an issue. I was kinda thinking the same thing when I filled out the Freddie Mac form there was a borrower and a co-borrower section. And since she was never in the loan it's all on my burden. Will keep you all posted come December if the modification gets permanent.

[KelEdwins]

I got married in January 2009 and that is when I started the modification process. I never disclosed that I was married because they never asked. He's not on my loan or title so they could never find out this information. I was by the way approved for a permanent modification. Just sent the paperwork back to Wells Fargo yesterday, now just waiting for them to sign and send back to me.

[cleach]

I agree - just don't say that you're married. She is not responsible for the loan anyway correct? So while it does increase household income, it's none of their business if your marital status changes. When you supply the paystubs, obviously you only provide yours.

Good luck!

[litehouse01]

I just posted the list of Denial Codes from the treasury..take a look...further Google....Supplemental Directive 09-06 and page all the way down to the bottom where it says "NEW" there is 15 pages of HAMP program updates including the Denial Codes hope this helps...................