Wells Fargo Loan(s) Reduction- Has anyone been successful?

[Tearmup]

We currently live in California and have an 80/20 loan- both with Wells Fargo. We paid $545,000.00 for our home. The current value of our home is $288,000.00. We have been approved for a short sale, but three buyers have fallen through.

I have written the executive team of Wells Fargo and asked them to do a loan reduction so that we can keep our home. According to Wells, due to the policies that their investors have established, they aren't allowed to do this. I then inquired about the new laws that are supposed to help homeowners like me and Wells doesn't have any current policies on how to deal with the new law(s) yet.

I am angry that they would approve a short sale for someone else to purchase my home when in fact- if they reduced my loan, they would lose less money.

I did have a loan modification approved, but chose not to take it because the value of the home had dropped so much. I don't see me living in the home for the next 30 years and the home may never be worth what we paid for it. It just doesn't make any financial sense.

Has anyone had success in getting a loan reduction with Wells Fargo? Is there any way to contact these investors?

Thanks!

[Moe Bedard]

Hi Tearmup,


Welcome to the forum and thank you for joining..............
We have not had any principle reductions from the investors on Wells Fargo loans..................the investors also do not deal directly with customers, that is why they hire the servicing companies to take care of their investment portfolios.

With the new FHA program that began on October 1st in order to qualify, you would need to negotiate with the second lien to have them release...............

I have a first and second mortgage on my home. Can I still apply for H4H?
Yes, however, all your existing lenders must agree to release the liens against your home.

[red2720l]

A reduction with WELLS FARGO are you kidding me?
We have been trying for almost a year.
They rather see you in the street than reduce your payment.
They need to have more people go into default so they can go out of business.
Fat chance! the fat cats keep getting bailouts we don't

[parthabn]

I too have two loans with Wells Fargo, 80/20. I contacted them for loan modification few months back and they had me write hardship letter, fill-up worksheet for monthly expenses, etc. and then told me that they would not help me cuz I don't qualify. Anyway, I also asked for principal reduction and they told me that they do not do that and they would rather foreclose the house or do a short sale but WILL NOT help me cuz I signed the loan contract with them. Wow, they are willing to take a loss on the loan but not help me!!!!

Anyway, I am wondering if you guys have stopped making payments on your loan? And do you know how long it takes for Wells Fargo to foreclose the property, is it the same 4 months or do they take more that????

[Moe Bedard]

the timeline would follow the foreclosure laws in your state....................

what state are you in?

[parthabn]

Hi ***, I am in CA!!!

[Moe Bedard]

Here is a link to the timeline in your state...........

California Foreclosure Law

a lender will usually send out an NOD after the 90 day late........but that part is up to the investor...........