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This is a discussion on Wells Fargo HAM Mod Success within the Stop Foreclosure and Tell Us Your Story forums, part of the Foreclosure Forum category; Hi All,
I'm new to the forum and have been familiarized with mods by reading many helpful posts. Thanks!
My ...
I'm new to the forum and have been familiarized with mods by reading many helpful posts. Thanks! My Trek: In current SoCal home since 1997. My job loss Dec 2007. Hubby receives Social Security. My unemployment benefits ends this Sept. Used savings to remain current and finally applied for Wells Fargo mod early March 2009. Had small deficient. Qualified (FreddieMac) for HAM program. First of 3 trial payments due 6-19-09. Final due on or before 9-1-2009. We’ve never been late at any time during the course of loan and remained so until modified payments. We’ve recently paid the second trial payment (for 8-01-09).
WF Workable Solution offered: Interest: 2.75% 5 years. 3.75% 6th year. 4.75% 8-20 year. We are reduced approx $257 per month. Was told by Rene 7-27-09 (Executive phone number) our saving is small because we have a small loan balance. He was my 3rd "opinion." We owe $109K. Original payment had recently increased to $1122 at interest rate 6.75%. Mod payment is $864.31: Includes (same as original) P&I, Taxes & insurances. We’re told that higher loan balances are benefiting significantly from mod programs. Our current trials will be actual monthly loan payment. So when you read of modifications lowering nearly half of original mortgage payments, those homeowners may have larger balances, as well as other mitigating circumstances.
NOTE: The HAM workable to 31% of gross income covers ONLY interest. Escrow (principle, taxes, ins.) is then added, so final payment is NOT 31% of gross. This was/is a huge misunderstanding to many.
All in all, it went rather smoothly & quickly compared to other stories I’ve read in the forums. I was on the phone constantly and believed that helped move the process along. Squeaky wheel and all that, you know. Also, I’ve worked on my sister’s behalf with CitiMortgage, and will post that success story soon.
NOTE: The HAM workable to 31% of gross income covers ONLY interest. Escrow (principle, taxes, ins.) is then added, so final payment is NOT 31% of gross. This was/is a huge misunderstanding to many.
Not according the guidelines -
Quote:
The “monthly mortgage payment” includes the monthly payment of principal, interest, property taxes, hazard insurance, flood insurance, condominium association fees and homeowner’s association fees, as applicable (including any escrow payment shortage amounts subject to a repayment plan).
Quote:
Servicers must apply the modification steps enumerated below in the stated order of succession until the borrower’s monthly mortgage payment ratio is reduced as close as possible to 31 percent, without going below 31 percent (the “target monthly mortgage payment ratio”).
I thought so. Same thing I read. Don't know why I was told my P & I was $611 plus escrow (total $865). Our income at time of application was $2215. $384 is unemployment benefit due to end in Sept, leaving us with $1831. That benefit expiration date was submitted to WF at the time.
Perhaps in Sept, after third trial pmt, Wells Fargo may ask about income again and adjust (?). I will keep inquiring.
Spoke with Rene today (exe team). He states the 31% ratio based on gross income for HAMP covers ONLY P&I. Escrow is a requirement added after the modified guidelines are met.
I think a moderator needs to speak with the Exe Team in order for correct information on Gov guidelines and what exactly Wells Fargo is doing to help homeowners under this program.
It's confusing enough without added stress of thinking the 31% of gross income is total payment. According to Rene, it is not -- only P&I.
He also states a mod will not be modified again (for lower pmts) once approved. He states my mod payment is based on 32% P&I (see above post w/figures).
I would continue to push this subject and NOT let it go. There is a part in the guidelines that states that after the trial is finished if the verified income is much less than the original income (25%) then the whole process starts again!
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