Loan Mod. denial letter from Wells Fargo

[cctherock]

We just rec'd a denial letter from Wells Fargo Mortg. I don't know what to do??? am i able to re-submit our financials? here is what the letter states.

After reviewing the information you provided, we must advise you your request for Loan Modification has been denied for the following reason:

Basedon the information provided, your monthly income totaled $8259.83 and your expenses totaled $8058.14 which indicates you do not have the ability to afford a modified payment plan. In order to assist you with possibly improving your situation we recommend you contact Consumer Counselors Agency. This group may be able to provide you with plans that may improve your financial situation.

There may be other alternatives that will assist you but are contingent upon agency investor approval. They are, but may not be limited to:

Pre-Foreclosure sale
Deed in Lieu of Forceclosure

We just need a decent mortgage payment, we want to keep our house.

can someone please help?

thank you.

[cctherock]

just rec'd denial letter for loan mod. i just spoke to the mort co. (wells fargo) i was to told that we are now in foreclosure and that there is a sale date of 10/21 they also gave me the # for a FHA hope for homeowners program. they said that through them i am not eligible for anything that they offer due to the status of our loan we owe 57,496.15 in fees and past dues. we have been waiting for a month and a half for an answer to our loan mod. what should i do? i am currently on hold for the fha program.

[Dan Bailey]

cc,
Welcome to the forum and thank you for joining. I noticed you posted this in another section also.
Hang in there, *** or Moe will be by to give you some advice as soon as they can.

Alot of folks have received denials at first....

[cctherock]

i will wait patiently, i'm freaking out b-cause of the sale date being 10/21.

i am new to this site and was not sure that i was posting correctly.

thank you for responding.

[Dan Bailey]

You posted just fine.

Believe me, I, and others here, understand the frustration of those letters like you received.

In the meantime, you may find it helpful to read through the other Wells Fargo stories here.

[cactus77727]

Hi,

Have you posted the details of your situation? Loans, balances, house value, etc.
I can't find. They are pretty good at giving you direction with more details. Also what state are you in?

[cctherock]

we are in california, upside down, loan balance is 602,000 values are now between 490,000 to 510,000 (i'm guessing) we satisfied our forebearance agreement and sent in our financials, hardship letter and check stubs, called a few times and was told it was in review. we rec'd the denial letter yesterday 10/8 letter dated 10/2, i called this am and was told that they began foreclosure on 10/2 and that there is a sale date of 10/21. they've also said that we could not afford a modified payment plan. as of now we owe 57,496 in lates and fees. our income is 8,259. and expenses totaled 8,058. from what they said our payment would go up even higher (now 4,058) and that's why we can't afford it.

they have referred me to the fha program "hope for homeownders program" called them and was told to go to their website, did that and cannot get to where they say i can get help, i've called them back and still no luck...

[cactus77727]

Hi cctherock,

I'm not an expert. Just another homeowner like yourself. I'm in Arizona.

So it looks like your are in your 20 day notice until foreclosure sale.
Power of Sale Notice Requirements
California Foreclosure Law

Did they follow all the notifications properly?

Also, if they do foreclose, do they have any recourse for deficiency? From what I've read that California purchase money loans are non-recourse, but you need to verify this.

I know from my experience (I am severely upside down on my home too), doing anything else than letting them foreclose makes my situation worse. In other words, if they can't come after you for anything after foreclosure, it may be best to let the foreclosure happen. So even if they approve your refinance it may not have been the best thing to do, unless they are reducing the principle by a huge amount.

[fehrll]

CCtherock -

I am in Ca also. I noticed your post. I found this information in another forum hereon loansafe. I can't find the link to the thread now, but it is SB 1137 - foreclosure relief bill.

It's new, signed in July I believe.

Homeowners MUSt be provided with 30 days notice prior to filing any default with the court. and 60 days notice to move out of foreclosed properties.

Did your bank provide you with this? If not, they are in violation of CA law.

Here are a couple links to some info on SB 1137. Hope this helps.

The American Homeowner in Crisis: California Law SB 1137 - A Beacon of Hope

http://www.leginfo.ca.gov/pub/07-08/..._chaptered.pdf

[COLLOG]

It would be good to know. How many months behind are you? What is your current interest rate? Have you only asked for a modifciation or have they offered you a repayment plan? We have been working with Wells Fargo for months now but they have always offered other alternatives besides foreclosue even if we can't do it. So really need to know the details of your situation. Hang in there. I have many contacts now thanks to this sight. Never give up. I haven't given up and now Wells Fargo is fighting for a modification approval through the VA. Still frustating though as it is still a waiting game.

[COLLOG]

How can you owe so much and still be in your home?

[The Professor]

cctherock:

As another poster noted, it looks like you are in the post Notice of Default (NOD), which runs for 3-months and began with the recordation of the Notice of Default coupled with sending you the notice by certified mail. Once that period expires, the trustee is able to proceed with the sale by recording, publishing, posting, and mailing the Notice of Sale. The minimum period to complete that process in California is 21 days. Specific reference is made to California Civil Code Section 2924b which sets out the steps associated with the non-judicial foreclosure process.

Frankly given your "underwater" situation and the total arrears, completion of the foreclosure may be appropriate. I know that is emotionally challenging but you need to consider the simple fact that the fair rental value of your home is probably substantially less than what you would be required to pay (in terms of principal, interest, taxes, and insurance [piti]). Given that fact, wouldn't you just be throwing good money after bad by proceeding in some sort of "workout" solution?

Sorry circumstances have put you in this position but an honest business analysis of it will probably provide you with the best course of action to follow.

Take care,

Daniel

[cctherock]

thank you all for responding, i'll answer some of the qustions that were asked of me:

just told that the home value in our area is 440,000 our loan is 605,000 las appraisal 2 years ago was in the low 600,000 as of now we owe appx. 52,000 with lates and fees, our payment is 4,058.00 and went up to 5,700 when we were in the forebearance plan. we satisfied that plan, and we submitted the paper work for the modification plan and were denied. we did not receive any notice that we were in foreclosure, i called yesterday and found all this out we have not rec'd anything in the mail or anything? wells fargo is telling us to call for the new program "help for homeowners" but cannot get any concrete answers from them, does anyone know anything or have #'s for this new program?

[cactus77727]

Is it legal for lenders or loan servicers to just 'make up' things, and try and bluff consumers?

It seems they try to test consumers to see if how ignorant or knowledgable you are. I don't understand how Wells Fargo can just call and tell you something. Where is the due process in cctherock's situation?

If you haven't received proper notices, are they trying to proceed to see if you will fight back or not? Can you get a consultation with an attorney in your area? Maybe have attorney verify your position and give you advice and strategy to make Wells Fargo follow the law. Who knows, you may have more 'free rent' time in your home. Maybe just call Wells Fargo and tell them: hey you can't foreclose, you haven't sent the proper notices, and see what happens.

[PBROOKELKLND]

It's pretty scary that they denied your loan mod because from what I read on this site usually banks are only looking for an extra $200/mo, and from what you noted that is exactly what your records showed. How much are you supposed to have then for them to modify?!

[susan spencer]

cctherock:
From doing a search online, it looks like you may have been refering to Hope for Homeowners, the new FHA program available 10/1/08.

[bongocheetah]

Hi cctherock: sorry to hear about your situation. Hope it works out fine and soon.

I have applied for WF loan mod too. I am three months behind. Just to get an idea of what to expect, can you please tell me how many months delinquent were you by 10/2 (when they started foreclosure). Also how long did it take in the loan modification review before they denied it.
Thanks

[cctherock]

well, here's a lil history of my situation. for the past 3yrs. my hubby has had some health issues, 3 back surgeries and last yr. in may had a stroke and a 2nd stroke this mo. although his line of work pays him well he does not get paid for sick time. disability was helpful but we ended up falling behind in our payments. i believe that we are about 10 months total behind, it is alot, and some will say "how are you still in your home?" but we have been put on hold 2x's, the first time we were told not to make our payment till they were able to put us into a plan and that took about 4 months, thats 4 mo's of not making a payment, this last time took 2 mo's, that right there is 6 mo's of not making payments the fees add up fast. we are not into a forebearance plan again and need to satisfy once more. if they offer you a forebearance plan ask them strongly if they can "modify" your loan instead. a forebearance will increase your payment. so for us we are just trying to hold on to our home.
2 mo's for a denial letter 10/2 denied and sale date of 10/21.

from our experience with wells fargo i will try my best to answer any questions you might have. just be faithful and try not to stress.

Remember, "Be Calm, Be Strong, Be Grateful"

[COLLOG]

We are nine months behind. Same scenario because of waiting and not paying while you wait but we only owe just over !2,000. Good thing for us is that we have no late fees or other fees just our mortgage payments as when we defaulted on the first payment plan they applied all the funds to the late charges and other charges. We hav not been charged a late fee or other fess since. We have the executive team of Wells Fargo working on our mortage.

[cctherock]

if you don't mind me asking, what is the executive team? is it part of collections?

[Moe Bedard]

The executive team is part of the office of the president.........

1-800-853-8516

[cctherock]

thank you, i'm going to call them. how did you get referred to them? i tried to get wells to work with me so that my payment wouldnt be increased, but was only offered the forebearance plan.

[Moe Bedard]

Are you asking me


I referred COLLOG to the executive office from my list of contacts, to help them out because their loan is a VA loan and they were not getting the attention that they deserve on the loan.

[COLLOG]

The last payment plan they put me on we could not afford. The financial information they had on us was incorrect. They based our income on OT that is not a guarantee and they divided out income based on our net for the year. I called the executive team the number *** gave me. I called and filed a complaint based on everything we have gone through the last 8 months. At first they were not very helpful but once I was able to guide them to get in touch with the VA they have been working on my modification.

[cctherock]

thank you again for the # to the executive team. i do not have a VA loan but i did speak to someone and basically i am scheduled to make my first payment of 2,400 tomorrow and beginning in nov. my payment will go up to 5,860 till jan. 09. at that point my loan will be modified and the payment will stay about the same i will be put into a fixed and the owed amount 68,000 will be put back into the loan. here's the kicker...they have sent me a ck in the amount of 12,152.39 that was sitting in a suspense account, has anyone heard of this? believe me this is a blessing, i will use this money to help with the increased payments. is this what i have to look forward to? a modification that keeps my payments at 5,800??? what else can i do?