Wells Fargo Denied for Loan Mod because Investor Declined?

[Jbell]

So, back in January I started working with WFHM on getting a loan mod or other help. I sent in all the paperwork several times, got assigned to my "home preservation specialist", etc... Told to wait...they have sent my loan to underwriting and it could take 4-6 weeks. After calling weekly to check in, I go one week without calling them and then they say they tried to contact me because they were missing one piece of information but I never got the phone call and they never left a message so they "closed" my file!! They agree to re-open my file, I fax the missing piece of info and they start all over again. Just 2 weeks later I get a phone call from the preservation specialist saying "we can't help you, you can't afford your home...we'd like to help everyone but we can't help you". I ask several times for an explanation and to verify what income they are going by (I make gross of $4,156/mo), and my mortgage is $1646/mo. I only have $225 per month other debt (student loan plus 1 credit card). The specialist refuses to give me an explanation and gets snotty when I ask for his supervisor?!! Then he hangs up on me. So, I get the Wells Fargo executive contact info from this site and I email those folks. I get a call back that afternoon from Adam Lawman in their complaint division. He asks me to send all new docs which I do. Sent those in on 4/10/12 and verified they did get them.

Now, I finally get a letter in the mail from my former "specialist" and he says "we carefully reviewed the information you sent us and explored a number of mortgage assistance options. At this time, you do not meet the requirements of the program because: Your pending mortgage assistance required approval from the investor that ultimately owns your mortgage, and the investor has declined the request."

This seems like a catch-phrase and not an explanation??! What does this mean? Especially since I found out that Wells-Fargo is the investor!! And they act like it's some other entity.

I am still waiting to hear back from the guy at the Exec. team, and I have called and left messages. Finally, today I contacted my senator's office and they are going to investigate. Is there anything else I can do? I suppose they don't want to give me a HAMP mod because it's not a great deal for them (but still better than a foreclosure, I think!).

My unpaid principal is $278,000, interest rate is 4.5%. It's a FHA loan.

Any suggestions? Ideas? I don't want to sell or short-sale or any of that.. love my home and want to stay there despite the value having dropped a lot. Thank you!!

[paradise]

I just received the EXACT same denial from ASC ( Wells). We have had one modification in the past which on the phone is one more reason my " home preservation speicialist" said my denial was based. But yes, we were told we did not qualify because the investors declined any modification request.

I too recieved letters in March saying they had been trying to contact me and i only had ONE message, in which i returned the next day.
This is all after months and months of sending in documents for review ( over and over again). My "home preservation specialist" seemed like he had never spoken to me everytime i would call.

We are at the end....now deciding to let my parents bail us out, let it go, or try chpt 13 repayment for the arrears that has been created by the waiting game, and emotional roller coaster this has been.

I too had contacted the Executive Branch via email first. i was called back within three days saying the same thing....there was nothing i could do. Our mortgage payment is "affordable" according to our financials and we can either pay up the arrears or they would help us with short sale. He did say if we wanted to send in our financials again, we could .... but our financial situation would have to have changed.
i have considered trying again - but i feel this was the last and ultimate final answer this time....and i am so very tired.

[kdarcel]

I just was denied because the investor said I could afford mortgage payment but not the arrears. ALL i am asking is that they put the arrears on the back end of the loan. I have been going thru this for almost 2 years. Now they want a short sale (NO)! Does anyone have any suggestions. Should I go bankrupt?. I am at my wits end.

I just received the EXACT same denial from ASC ( Wells). We have had one modification in the past which on the phone is one more reason my " home preservation speicialist" said my denial was based. But yes, we were told we did not qualify because the investors declined any modification request.

I too recieved letters in March saying they had been trying to contact me and i only had ONE message, in which i returned the next day.
This is all after months and months of sending in documents for review ( over and over again). My "home preservation specialist" seemed like he had never spoken to me everytime i would call.

We are at the end....now deciding to let my parents bail us out, let it go, or try chpt 13 repayment for the arrears that has been created by the waiting game, and emotional roller coaster this has been.

I too had contacted the Executive Branch via email first. i was called back within three days saying the same thing....there was nothing i could do. Our mortgage payment is "affordable" according to our financials and we can either pay up the arrears or they would help us with short sale. He did say if we wanted to send in our financials again, we could .... but our financial situation would have to have changed.
i have considered trying again - but i feel this was the last and ultimate final answer this time....and i am so very tired.

[Evan Bedard]

I just was denied because the investor said I could afford mortgage payment but not the arrears. ALL i am asking is that they put the arrears on the back end of the loan. I have been going thru this for almost 2 years. Now they want a short sale (NO)! Does anyone have any suggestions. Should I go bankrupt?. I am at my wits end.

Welcome and thanks for joining the community.

No, I would not give up now and always use BK as a last resort once all options are exhausted. Can you please share some more details about your mortgage and the amount you are currently behind?

[kdarcel]

In September of 2011 I called Wells Fargo Home Mortgage to ask for a modification. I was 2 months behind. I spoke to a specialist and he assures me that they could help and hold off on making a payment for 30 days until theu get back in touch with me. Ok so I listened to him. Something told me to call back and confirm. The very next day I called and the same man says he never heard of me but it seems as though my mortgage was going to foreclosure. I then started calling Wells Fargo every other day and they told me to call HOPE. I called them and they put me in touch with Money Management Inc. The counselor there assured me that he could help and put me in touch with a wells fargo specialist. Ok so this women took my info and was gung ho and then after a week she abruptly stopped emailing me and calling and excepting my calls. I left numerous messages. Then I called her supervisor and she finally got on the phone and said she was still talkinfg to WF. Have not heard from her since October 2011. Ok then I was assigned a preservation specialist from WF who never ever returned a phone call. I had to get information from another source. Then I call WF and asked what was a reasonably normal time frame to expect a return call. They agreed with me that it was unacceptable to not hear from them within 48 hrs.

OK so I was given another specialist and she called to say they denied my modification. Mind you I was involved I was involved in car accident and fractured 2 vertebrae in my neck.
So I called Wf and they told me to resubmit financial info. I did over and over again. Must have faxed same papers at least 50 times or more. Theywould say that I did not sign papers and things were not checked. I faxed same papers that really were signed and the correct check marks.

I then get a call from WF telling me to attend the Wells Fargo Home Prerservation Workshop. I did and they were ready to help me on the spot I had all my paperwork they just needed a letter from doctor with my return to work date (which I did not have with me). So I go home get the letter fax it over to WF. I get a call from specialist telling me if I go thru the workshop I would have to start alll over again. That was in August 2012. So I went along with them. Yesterday 1-7-2013 I called Wf to ask if any progress was being made and they told me that my file was being clarified at underwriters. I also emailed the Board Executives and got a return call left a message. Today 1-8-2013 I get a call from Preservation specialist telling me that mod was denied due to the fact I cannot afford to pay arrears but I can afford mortgage. They want me to do a short sale. Absolutely NOT> I have been in my house for 20 years and I want to keep. If anyone can offer any HELP PLEASE DO! I also went to see a counselor they told me to wait until sheriff comes and then they would go to court with me. I am at my wits end. I do have money saved.

I just was denied because the investor said I could afford mortgage payment but not the arrears. ALL i am asking is that they put the arrears on the back end of the loan. I have been going thru this for almost 2 years. Now they want a short sale (NO)! Does anyone have any suggestions. Should I go bankrupt?. I am at my wits end.

[Evan Bedard]

I then get a call from WF telling me to attend the Wells Fargo Home Prerservation Workshop. I did and they were ready to help me on the spot I had all my paperwork they just needed a letter from doctor with my return to work date (which I did not have with me). So I go home get the letter fax it over to WF. I get a call from specialist telling me if I go thru the workshop I would have to start alll over again. That was in August 2012. So I went along with them. Yesterday 1-7-2013 I called Wf to ask if any progress was being made and they told me that my file was being clarified at underwriters. I also emailed the Board Executives and got a return call left a message. Today 1-8-2013 I get a call from Preservation specialist telling me that mod was denied due to the fact I cannot afford to pay arrears but I can afford mortgage. They want me to do a short sale. Absolutely NOT> I have been in my house for 20 years and I want to keep. If anyone can offer any HELP PLEASE DO! I also went to see a counselor they told me to wait until sheriff comes and then they would go to court with me. I am at my wits end. I do have money saved.

It seems you have been dealing with all sorts of different reps, departments, and counselors trying to complete this process. Honestly some do seem to have been leading you in the wrong direction or simply did not take the time to look into your account to give you accurate updates. When going through the loan modification process it is always much better if you can only work with one or two reps who will follow up with you until the process is finalized. This way there should not be much confusion and lack of communication between departments which can cause anyone to be denied for a mod.

Do not listen to anyone telling you to apply for a short sale and I would recommend never to speak with the counselor again who told you they will help you once the Sheriff comes knocking.... That makes no sense because at that point the foreclosure process would be complete and you would no longer own the home.

How much money do you have saved, and is this money in your account in which you have supplied to the bank? If you have a lot of money saved and good income now this could be the reason they are denying you for the modification. Generally, lenders will not approve a borrower who has an excess of $25K saved up. However, if they are reviewing your account for an in-house program they can basically do as they please and could deny someone for having more than three months worth of payments in their account..

[kdarcel]

I was involved in a car accident and received no pay for 4 months. It is an in house mod but I am going to see a housing counselor tomorrow. So maybe they can help. My thing is I was only 2 months behind and by listening to WFHM I am now in foreclosure but not active. I am glad you told me about the short sale because that is what they keep telling me to do. I am at my wits end. Just want to resolve this issue and keep my home. IIf I do ghet to court I will go the way of mediaition.







QUOTE=Evan Bedard;444186]It seems you have been dealing with all sorts of different reps, departments, and counselors trying to complete this process. Honestly some do seem to have been leading you in the wrong direction or simply did not take the time to look into your account to give you accurate updates. When going through the loan modification process it is always much better if you can only work with one or two reps who will follow up with you until the process is finalized. This way there should not be much confusion and lack of communication between departments which can cause anyone to be denied for a mod.

Do not listen to anyone telling you to apply for a short sale and I would recommend never to speak with the counselor again who told you they will help you once the Sheriff comes knocking.... That makes no sense because at that point the foreclosure process would be complete and you would no longer own the home.

How much money do you have saved, and is this money in your account in which you have supplied to the bank? If you have a lot of money saved and good income now this could be the reason they are denying you for the modification. Generally, lenders will not approve a borrower who has an excess of $25K saved up. However, if they are reviewing your account for an in-house program they can basically do as they please and could deny someone for having more than three months worth of payments in their account..[/QUOTE]

[kdarcel]

I just received the same letter today. 1-14-2013. The letter say I was not eligible for a HAMP mod. I received this letter after I emailed the OOP of Wells Fargo. I don't know what is oing on.

[kdarcel]

So far I have saved 6000.00. It would have been more but I hired one of those bogus modification companies who did absolutely nothing. I am trying to get some of the funds back. I was out on disability 2 times without recieving paycheck. I thought I was being reviewed for an in house modification but the letter I received today says I was not eligible for a HAMP. I am so confused. I need some help here. I did email Michael yesterday. I am waiting to hear from him. I am trying to keep my house.

[kdarcel]

From looking online it seems these government programs are bogus. So many people are not getting help.

[Evan Bedard]

Well your lender will generally always first review your account for HAMP before exploring other options such as an in-house modification. However, even though they sent you this letter this does not necessarily mean that you do not have a modification currently in review. Did the letter explain the reason why your account was turned down for HAMP?

[jlrsacct]

I received that excuse too ! Investor won't sign off on mod ! I do know that the attorney general has wells fargo and asc at the top of their lists , wells fargo makes more money on foreclosing on homes so that is what they enjoy doing !

[Evan Bedard]

I received that excuse too ! Investor won't sign off on mod ! I do know that the attorney general has wells fargo and asc at the top of their lists , wells fargo makes more money on foreclosing on homes so that is what they enjoy doing !

This has been a common excuse for any lender to turn down a modification. Do you happen to know who your investor is?

[jlrsacct]

That's the big mystery !

[Evan Bedard]

Here you can use the following links to determine if Fannie Mae/Freddie Mac may own your mortgage, or it may be listed in the Mers database..

https://www.knowyouroptions.com/loanlookup

https://ww3.freddiemac.com/corporate/

https://www.mers-servicerid.org/sis/

[sysmosafe]

Evan;

Hope everything is well for you. Happens that I have a pick a payment from Worlds Saving (2007). I checked those websites before But I couldn't find the investor. I called WF and they affirm they own it but are not working thru the DOJ settlement I've been unsuccessfully trying to modify for four years now. is there any other way to find out who's the investor?.. If they own it they should go thru DOJ and the various settlements around this type of loan.

[TomEason]

Evan; Hope everything is well for you. Happens that I have a pick a payment from Worlds Saving (2007). I checked those websites before But I couldn't find the investor. I called WF and they affirm they own it but are not working thru the DOJ settlement I've been unsuccessfully trying to modify for four years now. is there any other way to find out who's the investor?.. If they own it they should go thru DOJ and the various settlements around this type of loan.

Thanks for your post. According to one of the many requirements (can't remember the source), loan servicers are required to disclose the identity of the investor. You might consider sending a QWR demanding that info.

[kdarcel]

My investor is Freddie Mac

Well your lender will generally always first review your account for HAMP before exploring other options such as an in-house modification. However, even though they sent you this letter this does not necessarily mean that you do not have a modification currently in review. Did the letter explain the reason why your account was turned down for HAMP?

[kdarcel]

My investor is Freddie Mac

[hfrances]

Evan;

Hope everything is well for you. Happens that I have a pick a payment from Worlds Saving (2007). I checked those websites before But I couldn't find the investor. I called WF and they affirm they own it but are not working thru the DOJ settlement I've been unsuccessfully trying to modify for four years now. is there any other way to find out who's the investor?.. If they own it they should go thru DOJ and the various settlements around this type of loan.

Hi sysmosafe. We have a World Savings 2007 loan too. Wells has always told me (when I ask) that our loan is owned and service by them. I had the same experience as you when I tried asking about the AG settlement modifications. In fact most WF reps I spoke to did not know anything about the AG settlement. To me - they can't have it both ways. They can't say they own it and then ignore the settlement designed to provide relief for loans they own.
We are currently being considered for the AG settlement - because I wrote a letter to the California Attorney General and copied it to Joseph Smith, the monitor of the National Mortgage Settlement, John Stumpf and Mike Heid (head of WF Home Mortgage) and my congressman. They have sent me a packet to complete that looks to be a combination of a HAMP and inhouse application (includes 2 completely different financial worksheets. A SPOC has been appointed in the Office of Executive Complaints and she told me that I am being considered for an AG mod as well as any other programs they have. I am not sure which state you are in but you could try and write/email your AG and copy Stumpf and Heid. I read the Wells Fargo consent judgement under the AG settlement and quoted the parts of that that highlight what they agreed to do in my letter. I only have 4 days to complete the darn thing and they may just be going through the motions because of my complaint to the CA AG but we will see.

Also - I don't know if you recall receiving a check from the original pick-a-pay settlement. The attorney appointed by the CA AG has now reopened the case because WF have modified less than 2% of the loans covered by the settlement. He is trying to get a moratorium on any foreclosures of World/Wachovia pick-a-pay loans. You may already know this but here is the link Wells Fargo settlement over 'pick-a-pay' home loans is challenged - Los Angeles Times. The date for the hearing is next week on Jan 31. Please note - this is not a multi-party lawsuit, this is a state sponsored legal action that does not involve any costs to the class members. We are all included - including I believe people with these loans outside California.(If I don't clarify this sometimes this info gets taken down by the moderators who are rightly concerned about people promoting other multi-party lawsuits that involve up front fees etc)

Good Luck!

hfrances

[Jbell]

Hi all,

I wanted to let everyone know of an alternative way to save your home from foreclosure and keep it! This past year I was fighting and fighting with Wells Fargo (my servicer) to obtain a loan modification. I have an FHA loan and I was in serious default (over 18 months behind on payments). WFHM kept finding ways to deny the loan modification and my home was nearly sold at auction. I did extensive research online and I started reading more about the HAFA (Home Affordable Foreclosure Alternatives) program. One of the unique parts of HAFA is that there is a new provision in the law that alllows you to short sale your home to a non-profit and then buy (under contract for deed) or rent your home back. The key is finding a non-profit organization that will buy your home in a short sale.

Here's the deal I worked out with the non-profit and Wells Fargo. My past due balance on my mortgage was $254,000. I am selling my home to the non-profit in a short sale for $110,000. When the sale closes in two weeks I have a second closing in the afternoon where I am buying back my home under a contract for deed at $110K at 7.5% interest. Yes, the interest rate is higher than my FHA loan but only for a max of 2 years. At the end of that time I will qualify for traditional mortgage financing and buy the home back. The two year time period gives me a chance to bring my credit score back up and most importantly (to me) allow me to stay in my home. And, I will be out from under that huge loan of $254,000 (which WFHM is not pursuing under deficiency). The non-profit is working with me by providing financial counseling and budget help so that I stay on the right track during those two years. Actually, the non-profit is thrilled to work with me - this is the first time they have been able to help someone stay in their home insted of of buying a foreclosed property after the fact. There have been a few extra steps to get this all accomplished (WFHM wanted to have proof that the non-profit was legally a non-profit, that I wasn't affiliated with their agency or board, etc...) but it has been worth it! I am sooo happy to be done with WFHM and the emotional roller coaster ride of the past two years. If anyone wants additional information please let me know. Thanks and keep fighting! Never give up!!

[Cat Damiano]

Hi all,

I wanted to let everyone know of an alternative way to save your home from foreclosure and keep it! This past year I was fighting and fighting with Wells Fargo (my servicer) to obtain a loan modification. I have an FHA loan and I was in serious default (over 18 months behind on payments). WFHM kept finding ways to deny the loan modification and my home was nearly sold at auction. I did extensive research online and I started reading more about the HAFA (Home Affordable Foreclosure Alternatives) program. One of the unique parts of HAFA is that there is a new provision in the law that alllows you to short sale your home to a non-profit and then buy (under contract for deed) or rent your home back. The key is finding a non-profit organization that will buy your home in a short sale.

Here's the deal I worked out with the non-profit and Wells Fargo. My past due balance on my mortgage was $254,000. I am selling my home to the non-profit in a short sale for $110,000. When the sale closes in two weeks I have a second closing in the afternoon where I am buying back my home under a contract for deed at $110K at 7.5% interest. Yes, the interest rate is higher than my FHA loan but only for a max of 2 years. At the end of that time I will qualify for traditional mortgage financing and buy the home back. The two year time period gives me a chance to bring my credit score back up and most importantly (to me) allow me to stay in my home. And, I will be out from under that huge loan of $254,000 (which WFHM is not pursuing under deficiency). The non-profit is working with me by providing financial counseling and budget help so that I stay on the right track during those two years. Actually, the non-profit is thrilled to work with me - this is the first time they have been able to help someone stay in their home insted of of buying a foreclosed property after the fact. There have been a few extra steps to get this all accomplished (WFHM wanted to have proof that the non-profit was legally a non-profit, that I wasn't affiliated with their agency or board, etc...) but it has been worth it! I am sooo happy to be done with WFHM and the emotional roller coaster ride of the past two years. If anyone wants additional information please let me know. Thanks and keep fighting! Never give up!!

Congratulations on finding an alternative. I am so glad that you are able to save your home. I was reading through the thread and you had mentioned that WF owned your loan and that it was an FHA loan. How did you know that your loan was FHA? Did you have an FHA case number on your docs? The reason why I had asked is because FHA loans do not qualify for the HAFA alternatives and have their own pre foreclosure sale program. So if this is the case, then that would mean that HUD began their own program similar to the Short Sale Buyback from HAFA.

I had also posted information in regards to this type of program in July 2011 in the following members thread who had received a letter in regards to it;

short sale buyback program?

[TomEason]

Hi all, I wanted to let everyone know of an alternative way to save your home from foreclosure and keep it! This past year I was fighting and fighting with Wells Fargo (my servicer) to obtain a loan modification. I have an FHA loan and I was in serious default (over 18 months behind on payments). WFHM kept finding ways to deny the loan modification and my home was nearly sold at auction. I did extensive research online and I started reading more about the HAFA (Home Affordable Foreclosure Alternatives) program. One of the unique parts of HAFA is that there is a new provision in the law that alllows you to short sale your home to a non-profit and then buy (under contract for deed) or rent your home back. The key is finding a non-profit organization that will buy your home in a short sale. Here's the deal I worked out with the non-profit and Wells Fargo. My past due balance on my mortgage was $254,000. I am selling my home to the non-profit in a short sale for $110,000. When the sale closes in two weeks I have a second closing in the afternoon where I am buying back my home under a contract for deed at $110K at 7.5% interest. Yes, the interest rate is higher than my FHA loan but only for a max of 2 years. At the end of that time I will qualify for traditional mortgage financing and buy the home back. The two year time period gives me a chance to bring my credit score back up and most importantly (to me) allow me to stay in my home. And, I will be out from under that huge loan of $254,000 (which WFHM is not pursuing under deficiency). The non-profit is working with me by providing financial counseling and budget help so that I stay on the right track during those two years. Actually, the non-profit is thrilled to work with me - this is the first time they have been able to help someone stay in their home insted of of buying a foreclosed property after the fact. There have been a few extra steps to get this all accomplished (WFHM wanted to have proof that the non-profit was legally a non-profit, that I wasn't affiliated with their agency or board, etc...) but it has been worth it! I am sooo happy to be done with WFHM and the emotional roller coaster ride of the past two years. If anyone wants additional information please let me know. Thanks and keep fighting! Never give up!!

Thanks for posting this valuable (and novel to me) information; congratulations on getting it done! This solution, needless to say, is very favorable. You're to be commended for 1) discovering the program, and 2) having the patience and tenacity to manage the process through to culmination, and 3) helping other members by paying it forward. Kudos!

[TomEason]

Congratulations on finding an alternative. I am so glad that you are able to save your home. I was reading through the thread and you had mentioned that WF owned your loan and that it was an FHA loan. How did you know that your loan was FHA? Did you have an FHA case number on your docs? The reason why I had asked is because FHA loans do not qualify for the HAFA alternatives and have their own pre foreclosure sale program. So if this is the case, then that would mean that HUD began their own program similar to the Short Sale Buyback from HAFA. I had also posted information in regards to this type of program in July 2011 in the following members thread who had received a letter in regards to it; short sale buyback program?

Cat, I hadn't seen your post of a year ago in the other thread about this program for FHA loans. So I've been in the dark about it!

[Jbell]

Hi Cat,

I knew my loan was an FHA loan based on having an FHA case number and my original paperwork on my loan from 2006. After doing my research and finding out about the HAFA buyback program I began asking WFHM and the non-profit about whether we could do some form of a hybrid of both the FHA pre-foreclsoure and HAFA. WFHM's response was that they were willing to do it as long as we kept to the basic concept of an "arms's length transaction" during the sale (i.e. that I was not affiliated with the non-profit in any way, that I did not work for them, etc...). the non-profit had to provide their non-profit articles of incorporation and a list of their board members. The process did take extra time simply because this was a new way of doing things for WFHM. I did work with a contact at the Executive offices who was incredibly helpful (his name was Ken Reed). In the end, I am doing the FHA pre-foreclosure paperwork and receiving the $1,000 incentive because we are closing quickly. I think the key here was that I was entirely up-front with WFHM about what I was doing (buying my home back after the short sale) and they basically said "we don't care what you do after the loan closes". If others are interested in doing this, obviously they need to find a non-profit willing to work with them and I would also suggest finding a relator or a real estate attorney who can help put the deal together. I started this whole process in September 2012 and now finally closing in 2 weeks so you need to have patience and perseverance!

[Cat Damiano]

Hi Cat,

I knew my loan was an FHA loan based on having an FHA case number and my original paperwork on my loan from 2006. After doing my research and finding out about the HAFA buyback program I began asking WFHM and the non-profit about whether we could do some form of a hybrid of both the FHA pre-foreclsoure and HAFA. WFHM's response was that they were willing to do it as long as we kept to the basic concept of an "arms's length transaction" during the sale (i.e. that I was not affiliated with the non-profit in any way, that I did not work for them, etc...). the non-profit had to provide their non-profit articles of incorporation and a list of their board members. The process did take extra time simply because this was a new way of doing things for WFHM. I did work with a contact at the Executive offices who was incredibly helpful (his name was Ken Reed). In the end, I am doing the FHA pre-foreclosure paperwork and receiving the $1,000 incentive because we are closing quickly. I think the key here was that I was entirely up-front with WFHM about what I was doing (buying my home back after the short sale) and they basically said "we don't care what you do after the loan closes". If others are interested in doing this, obviously they need to find a non-profit willing to work with them and I would also suggest finding a relator or a real estate attorney who can help put the deal together. I started this whole process in September 2012 and now finally closing in 2 weeks so you need to have patience and perseverance!

Ah, ok, that just answered my question, you are doing the FHA pre foreclosure sale as the short sale which would circumvent the program parameters to be able to include the FHA loan. Congratulations again, I am glad it worked out for you. I just wish we would have seen more of these types of workouts over the last year and a half, but sadly we have not.

[Cat Damiano]

Cat, I hadn't seen your post of a year ago in the other thread about this program for FHA loans. So I've been in the dark about it!

I had received the information through NAR first back then and hadn't posted about it until the member received the letter and wanted to know if it was legit.

[hfrances]

I had received the information through NAR first back then and hadn't posted about it until the member received the letter and wanted to know if it was legit.

Who are the non-profits doing this? Any contact info? Thanks

[Cat Damiano]

Who are the non-profits doing this? Any contact info? Thanks

The first step would be to find a Realtor in your area that is certified for the HAFA short sale buyback program or leaseback program as some call it. A google search may help you with that. It is the Realtor who would work with certain non profits that would be authorized by the lender to provide the program. Not all loans are eligible, and unfortunately not all servicers are offering it and it is up to the discretion of the lender. So far I have only seen the one above through Wells Fargo posted on the forum, and one of their stipulations is that they own the loan. I have also seen BofA and Citi allow a couple as well outside of the forum.

Here is a program overview:

• Homeowners must work with a licensed agent who is trained and certified by the Short Sale Lease Back Program.
• A qualified non-profit would purchase the home in a short sale.
• The homeowner’s lenders must approve of the lease-back terms — the intent of the sale and tenancy cannot be hidden from the lienholders.
• The seller would lease the home for a minimum of three years, allowing their credit to heal so that they could qualify for a mortgage.
• Homeowners must attend ongoing HUD and financial-literacy counseling and speak with legal and tax experts to ensure the program is the right fit.
• If approved, the former owner might be allowed to repurchase the home at the end of the lease term.

Not all homeowners qualify for the program. Borrowers must have sufficient income to afford the monthly rent payments in addition to their other debt payments.
Homeowners who don’t qualify for the program can still complete a traditional short sale, which may include a relocation incentive from $2,500 to as much as $45,000, depending on their lender, loan amount and individual situation.


To qualify, homeowners must:

• Live in the property as their primary residence.
• Have steady, verifiable income.
• Have a valid hardship and be able to qualify for, and complete, a HAFA short sale.

Home Affordable Foreclosure Alternatives (HAFA) Program

[kdarcel]

[



My Investor is Freddie Mac my mortgage company is wells Fargo Home MOrtgage


QUOTE=Evan Bedard;447522]This has been a common excuse for any lender to turn down a modification. Do you happen to know who your investor is?[/QUOTE]

[kayjay]

I have Wells Fargo. I only owe 45k. I have a fixed 15 year loan with 6 yrs remaining and a 5% fixed rate. I lost my job in Jan 2012 and I called them right away to ask about options but of course I was told to wait until I got behind and then call back. I didn't get behind until June, but its been down hill from there. As soon as I got behind, it got worse and worse. I got a new job in August and took a 50% pay cut but I am working hard to get back to my old income level. I have read my story on this forum over and over again..... We call...give info....call them back and they don't have a record of talking to us....leave messages and never get a call back.....we send the same docs over and over....loan specialist quit...denied and we don't know why. My question is this.....What end result are these banks looking for?? Haven't they already been bailed out or paid off to help us?? What am I missing?? I am not asking for a principal reduction or anything extreme at all. Is it unreasonable to add 5 or 10 years on to my loan??? I will be paid up, they will get paid, they will make a few extra bucks and I can keep my house. Why am I being denied for a modification?? By the way, it is Freddie Mac owned and value is approx 110,000. I am just over 4 months behind.

[Cat Damiano]

I have Wells Fargo. I only owe 45k. I have a fixed 15 year loan with 6 yrs remaining and a 5% fixed rate. I lost my job in Jan 2012 and I called them right away to ask about options but of course I was told to wait until I got behind and then call back. I didn't get behind until June, but its been down hill from there. As soon as I got behind, it got worse and worse. I got a new job in August and took a 50% pay cut but I am working hard to get back to my old income level. I have read my story on this forum over and over again..... We call...give info....call them back and they don't have a record of talking to us....leave messages and never get a call back.....we send the same docs over and over....loan specialist quit...denied and we don't know why. My question is this.....What end result are these banks looking for?? Haven't they already been bailed out or paid off to help us?? What am I missing?? I am not asking for a principal reduction or anything extreme at all. Is it unreasonable to add 5 or 10 years on to my loan??? I will be paid up, they will get paid, they will make a few extra bucks and I can keep my house. Why am I being denied for a modification?? By the way, it is Freddie Mac owned and value is approx 110,000. I am just over 4 months behind.

They weren't sending you letters letting you know the reason for denial?

[nannyT]

I have just went thru the same exact thing with WF! I had a modification last year I accepted their offer and finished my trial period in July. My job cut hours again in September ..I called WF and asked if I could add an extra $100 to payment to catch up ...they said I could and that's what I started doing until they decided to give me a home preservation specialist who would not even accept my payment at all and said in our first conversation that I should consider just giving up my home .I don't even know how she could have read my file ...they just transferred call to her!!! I asked again could I just pay what is behind? She would!n't accept it either said I needed to wait to see about modification ..and yes I'm getting further behind! I sent paper work so many times I lost count . Finally I sent everything all over again in one big package! In a little over a week I get a call saying they couldn'tfind a program and I was; denied the modification and foreclosure would begin....I was told by WF HPS that I didn't complete the 12 month therefore I was in default ..I was never told I couldn't miss a payment in the 12 months following modification..! People do not have control over their job cutbacks or layoffs; I have a handicap spouse and 3 small grandchildren who lives with me; one of whom is special needs..home has been modified to fit their handicaps; considering bankrupt procedures to save home.....I made several complaints about how she was handling my application but of course no response. I need help I'm in SC, we have been in our home 10 years don't want to move I cannot afford to remodel again! My home has fallen in value as well!