If anyone can please help . . .

[tiernanogg]

Hello,

I am so thankful for this site. I've exhausted so many venues and many give so much wonderful information, but I was looking for something specific and have not been able to find it.

First - a little background. We have been in our house since 1991. Had a mortgage with Countrywide and refinanced about a year and a half ago and now have a mortgage with Wells Fargo. My husband had a successful plumbing company and decided to try his hand at building. He did great at first, but then the whole housing crisis began and he was without income for some time. He got a job at a local plumbing company so that he could make some sort of income, but it is a fraction of what he used to make. Now we are behind on our payments and put into a program with Wells. We just completed making our three payments (scratching and clawing our way to get those payments in) and now we much submit our expenses, income and hardship letter and hope for a loan modification. I DO NOT WANT TO LOSE MY HOME. I have two small children. Our home is our life.

My worry is that Wells is going to look at our budget and what we make for income and decline the modification. We have gotten rid of most of our debt. We have no car payments, no credit cards, nothing like that. Just utilities and the basic living expenses. My question is this: Is there a general guideline for acceptance into these programs. Do they look at your income and declare that you can only afford a certain percentage above it and is there only a certain percentage they will consider for modification? I am so afraid. I cannot lose my home. Please help me if you can.

[Moe Bedard]

Hi Tiernanogg,
Welcome to the forum and thank you for joining.........

You have Wells Fargo right now, is that the only lien on the house?
What type of loan is it? ie....interest only or PITI?
What is the current interest rate and is it scheduled to adjust soon?
What state are you in?
After doing your household expenses and income what is the exact amount that is left?
Thank you,

[tiernanogg]

***,

Thanks so much for your quick response. In answer to your questions:

Yes, we are currently with Wells Fargo.
Our interest rate is 9.5 and currently set to go up.
I am in New Hampshire
After looking at income vs expenses we are short $757.60.

Is there any hope for us? I am only wishing for a temporary assistance from Wells. My husband hasn't abandoned his building business - it is just not making him any income right now. Things can't stay this bad in the housing market forever. Previously he was a new construction plumber so we are very familiar with the market and its dips and valleys. I'm sure we'll get through it, we just need some help now. Is it possible? Would they lower our payments?

[Moe Bedard]

That is a tough one as they do require for a modification that you have a positive of about $100-$250 to show that if they were to offer the modification you could afford to pay.
Is the property in a negative equity position?
What is owed on the property vs what it is worth........

[tiernanogg]

Equity is a tough one. We used to have about $100,000.00 equity, but that certainly isn't realistic now. We are probably looking at maybe $20,000.00 equity maybe a little more. Could be a break even as well. But definitely not a loss.

If we show a +250.00 difference, then why would they bother to modify the loan? The numbers would show we could make the payments.

Bottom line: my current mortgage is just under $3000.00 a month. Between me and my husband we take in $4416.00 a month. If Wells could somehow reduce our payment to $1500.00 - even $2000.00 a month a think we could do it. Do you think they would? I am so desperate. I do not want to lose my home. I can't imagine what it would do to my family. My children.

[Moe Bedard]

They base the $100-$250 positive amount on a rate that is going to adjust upwards.....which is why they would most likely offer a freeze of the 9.5 rate and that sounds like it wouldn't work for your situation.
The modifications that they are offering aren't going in reverse of the start rates especially with Wells Fargo they are very difficult to deal with....
If you go to the top of the forum in our search engine you could type in Wells Fargo and see what the other members that are dealing with them are up against and what they are doing to get the modifications.
Also with the modifications they are escrowing for taxes and adding principle to the payments if they are interest only right now......so it actually raises the payment as does a forebearance or repayment plan.
It doesn't hurt you to try........but a negative balance on the income/expenses hasn't received a modification as of yet.....

[tiernanogg]

If I did make the required +250.00, what kind of help from Wells could I potentially be looking at?

Thanks so much for your help.

[Moe Bedard]

I can't predict what they would do in your situation because every situation is viewed differently...
To be honest in our success forum there is only one success with Wells Fargo........as I said they are very difficult to deal with, they are very sneaky when members have called for the Loss Mitigation/Home Retention department they have been transferred to the Collection department instead....so their tactics are not nice.
Look under the Success Story forum and read Girlwiththemail.........she is the only Wells Fargo success so far and she received a fix of her rate that was set to adjust fixed for the life of the loan.....
Also as I suggested if you would like to see some answers and advice we have given to the others working with Wells Fargo........just use the search and type in Wells Fargo......you might find some information that will be able to help you too.....
But my thoughts are that Wells Fargo would appear to be Freezing the arm rates and fixing them for the life of the loan.........
If that would help you then you should try.....

[tiernanogg]

Thanks so much. You have been very very helpful. I will do what you suggest.

[Moe Bedard]

You are Welcome

Please keep us posted on your progress here through your thread......
Best of Luck to you.......I hope it all works out

[evel1999]

A modification is basicaly like a refinance.

You said your interest rate was somewhere around 9.5%. What is your loan balance?

Go on one of the mortgage calculators and put in your loan balance (and if you are behind in payments add those to this balance) and do different interest rate calculations to see what your payment would be at 5.5%, 6%, 6.5%, 7%, 7.5% and this will give you an idea of what the payment would be if they offer you a modification at any of these reduced rates. That will give you an idea of what you need to ask for as far as a loan modification and you will be able to see what rate you need to ask them for on a modification.

You will have to show income to afford that payment. Current interest rates are around 5.5% now, and most modifications are being done at the initial rate, (was your initial rate in the 9% range? if so tell them that is too high and ask for lower rate) They set a current interest rate when they talk to you about the modification and that can be negotated with them. Most of the time they have to get the investors approval to lower the rate below the initial rate but it can be done, and then armorotize it over 30 years and that determines the payment. Then you have to have enough income to be able to pay the payment and cover your expenses. This will give you an idea of what you are up against and how to proceed with the modification.

My loan was with American Service Co/ (who is Wells Fargo), My initial rate was 8.2. They lowered it to 7.250 and it saved me $100 a month.

You must do the hardship letter, submit income proof, and budget and know what you want to ask for in a written letter. Write the letter to request modification and get a written receipt from post office and mail it and also fax it to them. This will start you out. But you must know what you want them to do as far as what rate and etc so you can request that.

It is tough, they are hard to work with.

Hi there, since Wells Hell is a part of the Project HOPE program, you should call them, even HOPE reports that Wells is very hard to work with, they have no direct numbers....Wells touts that they are part of the program, but....

So please call HOPE they will assist with the budget and get you into a position where the budget may meet their standards... 888.995.HOPE or ACORN www.acorn.org.

These are both non-profit organizations can take the information and intervene for you in the process.

Meanwhile you need to be very proactive with these toads...you will need to QWR the file and get them to pay attention....

You need to be the proactive, responsible party with them and keep at them. It would not hurt to send a QWR demand - there are examples of the letter in the Tool Box. In that letter demand your Life of Loan History, copy of Note, Deed of Trust, Riders, all Assignments of the Deed of Trust, TIL, Right of Rescission (if refi), Lender Final HUD-1, copy of initial loan application and final lender loan application, all disclosures and all loan documents in your file, copy of appraisal. Send this three times certified return receipt required and also send it to the Broker, Title Company and all others in the Chain of the Transaction.

This thread has a really good example:

My Countrywide escapade and Hi!

Meanwhile, you have to call every day and make them accountable for their actions.....call, call, call and fax, fax, fax....these guys are one of the largest Banks in the United States, write your elected officials, state, federal and local. You also should write Dick Cheney....more than one of our members has an gotten results. Also contact your state Banking Commissioner and your State AG's Office about the problems that you are having. Stand up and let them know, I am not going to loose this house.

[tiernanogg]

Thank you Poppy and Evel1999 for your suggestions. We faxed our information that same day I originally posted - once my husband got home. He was eager to get it all in. He has called a couple times to confirm they received it and on the third day the person who answered the phone offered up a glimmer of hope. She said that they had received the info and it was being reviewed and looked like it was going to be approved. I am hopeful - but won't count my chickens . . .

I really am hoping for some sort of significant interest reduction. 6% would be great. It is something we could afford right now. My husband is a builder and as you can imagine our finances have been dismal. I sit here in a cold house just to save $$$ on fuel. Here in the Northeast, putting the thermostat on 60, doesn't really help keep you warm. Once the kids get home I boost it up to 64. My husband works days, me nights. I just pray everyday things get better. :/

My thoughts and prayers are with everyone.

Just make sure to stay on top of them....call daily and do not let up the squeaky wheel gets the grease with Wells Hell and Country Fried.....

On the cold issue, yep, I know the problem and you guys use Oil or Propane...not cheap. I grew up back there, we used coal...god I hated that furnace, coal fired, steam heat radiators and half the time the steam never got to my bedroom.....cold...very cold.

Now for the rate, that is totally incumbent on the investor and what they need to obtain in the long run as they are not getting what they anticipated....fingers and toes crossed, anything is better than what it is today, however, lower is better...