Wells Fargo Modification SUCCESS!!

[mariners1999]

First off I want to thank everyone that keeps posting here. I have been a lurker for about 2 months now and that is what helped me with my 2nd mortgage with CitiMortgage and the modification that I got from them. This forum has been such a help keeping me sane!!!

My story is as follows:

My wife and I started a business about a year ago (great timing huh?) and finally closed up shop in October after losing over $100,000. This loss forced us into Bankruptcy however we both kept our other full time jobs. What we were looking to do was keep the house if at all possible. We did take out a 2nd mortgage about 2 years ago with CitiMortgage but I won't spend much time on that since they modified the mortgage for us and lowered the rate to 7% on the 2nd and took the payments we were behind on and just extended the loan by 3 months so we reaffirmed the 2nd which made us and them happy.

Now on to the problem mortgage with Wells Fargo.......

We have had our 1st mortgage with Wells for 4 years at a fixed rate of 6.25% for 30 years (no ARM). We are 3 months behind and have already had our meeting of creditors for our bankruptcy (chapter 7). The bankruptcy is scheduled to discharge on Feb 20, 2009. I sent a letter to Wells Fargo in November at the same time I sent one to CitiMortgage. I followed up with Wells over and over and they never got the fax. So I refaxed the letter (with supporting documentation with our budget paystubs etc.) on Dec 3rd and they began working on it December 11, 2008. I told them I want to reaffirm the debt but they keep telling me that I have to be current to reaffirm the debt. I am told to call every week and check in and every week they say that it can take 60-90 days to have someone take a look at this. It scares me to death that this is going to take that long before we get an answer. I really don't feel good about our chances since our investor is FreddieMac and they will not do a streamline for us since we are in active bankruptcy for another 50 days or so. All I was really looking for was for them to take our 3 months of past due payments and either tack them on to the loan or extend the loan for 3 months past the current expiration date.

Has anyone out there had an issue like this? What should I expect from Wells Fargo? Am I crazy to think they will help me? Is there another company like HOPE or someone that I should contact?

Thanks for your response and advise.

[Moe Bedard]

HI mariners1999,


Welcome to the forum and thank you for joining..............

The problem that you are going to run into even if you go to a third party such as HOPE is that the modification will still need to go through FreddieMac...........and they will not modify with the bk still active......they will work with you after the discharge on the streamlined modification because you fit the criteria of the 90+ days in default...

try and see if you can work with the executive team on getting updates on the file................
1-800-853-8516

[mariners1999]

So I would guess the best bet for me right now would be the following?

1. Call the executive team on Monday and see if there is any updates they can give me on the file or any help they can give me.

2. Save my money (Wells will not accept a payment right now from me unless it brings me current which I can not do at this point) that I normally would pay on the mortgage so that if I need 4-5k in a few months I can offer that to them.

Does this seem like an appropriate action to take?

M

[Moe Bedard]

You may be able to get ahold of the executive team either now or Friday.
we can not advise you on whether or not to make your payments.

[mariners1999]

***,

Thanks again for all the help you give of your time and experience to us here at some of the weakest and scariest points in our lives!!!

I called and talked to a very nice lady in the executive offices. She asked that I Fax all my paperwork that I sent many times to the bankruptcy department and she would contact the person that is working on the file to see if there is something we can work out.

I will keep you posted as to what happens in the next week (nothing will get done between now and Monday I am sure).

M

[mariners1999]

update:

Sounds like good news. I got a call today from Wells Fargo (loss mitigation) and it sounds like they are going to make me a modification offer. My payment goes down by $350 bucks a month for 2 years then back to the old payment of about 1500. Plus the 4 months I am behind it sounds like they are going to roll them into the loan. I was told they sent paperwork to me via fedex or ups or something like that. So I should have something in my hand in the next few days.

After reading all the issues people have had with Wells I hope that I am one of the lucky ones that they are making a good offer.

M

[Moe Bedard]

M,

Congratulations!!!
Yes............I would agree that is lucky and good from Wells......it gives you some breathing room......



Please let us know when you receive the docs..........

[HopingtoFind]

Good for you! Congratulations!

Did you ever find out who the investor was on your loan, was it Wells Fargo?

[mariners1999]

Actually I DID find out who it was and that is why I am so surprised that this is happening without either a major fight or without intervention from the White House and new regs that will prob go into effect in the next 30 days.

It was Freddie Mac..... Yes I know they work with you with their new program but I DO NOT QUALIFY for the program since I declared chapter 7 bankruptcy.

Very interesting. Again I will sleep a whole lot better when I get the docs and can review them. When I do I will post the exact changes for all to see. Thanks again to everyone for their help.
Maybe this shows that Wells is starting to really work with people.

M

[mariners1999]

Figured I should give an update on this neverending saga. :-(

I did get a proposed modification paper that said they were going to modify my loan from 6.5% to 4.5% and increase the term from 30 years to 40 years..... They will tack on all my payments I am behind (4 right now soon to be 5) and my first payment was to be March.

This was a GREAT deal and I told them I wanted to go with it. HOWEVER....................

The only thing they need is a letter from the trustee in our bankruptcy case (eastern washington state) that says they consent to the change. The problem is that the trustee for our bankruptcy case refuses to send consent letters. He must feel they are a waste of time since I already had my creditor meeting and it went smoothly.

So now I am stuck.......... Wells wants this consent........... Trustee says he NEVER provides these types of letters......... Wells will NOT do anything until they get a consent from the BK trustee so now I am stuck in this never ending loop.

Such is life. I have been fighting for a week on this and have gotten nowhere. They sent the file back to the BK department to see if there was anything they could do and I will know a final answer on Monday if they will waive this requirement however it sounds like that will not happen.

Funny part about this is Citimortgage did not require the trustee to signoff and I have already reaffirmed and modified my 2nd with them and am already making payments.

Will update again when I have more info. Seems like Wells fargo is a nightmare and I am not one of the lucky ones.

M

[mariners1999]

UPDATE!!!!!!!!!!!! SUCCESS!!!!!!!!!!!!!!!!!

Well I guess the phone calls to the executive team and to my loss mitigation case worker has paid off!!! I got my modification paperwork today via next day air!!!!!! Here is what I was granted:

Old Loan

200k 1st mortgage
6.5% per year
30 year note
payment with taxes and insurance aprox $1500.

New note:
208k 1st Mortgage (added in all my late payments and late fees)
4.5% per year
40 year note
Payment with taxes and insurance aprox. $1150.........


So my interest rate dropped 2 full points and they added in my 5 months that I am past due!!!! What a relief. The only thing that I did not understand but understand now is they required not only my first payment to be on 03/01/2009 but ALSO I have to send in a full payment of $1150 when I send in my paperwork as a contribution required. That makes it a little tight but for the interest savings and such I feel it is worth it. I was told that it will be credited to my loan but even if it is not I feel that this was a GREAT SUCCESS!!!!!

All I can say to all is keep calling and be NICE!!!! I really started to make headway when I talked to the executive team number that *** had posted. From start to finish it still took me almost 3 full months of weekly calls and follow up to get this done. Some of that may be because of my Chapter 7 bankruptcy but a lot had to do with how backed up they were as well.

Good luck to all of you that are in the same boat as I was and I will make sure to say prayers for you that you will get the help that you need as well!

M

[jspmedia]

Congrat. and Good Luck to you..

My Situation is very similar to you but little worse..just had Chap 7 Meeting, ASC(wells fargo servicer) wants consent letter..but consent on what? My last 3 month Neg. is stopped cause of BK filing, now ASC want me to work with BK dept.

Can I use Exec phone # eventhough I got loan with ASC but WF is investor?

Again, good luck to you and wish I have similar mod soon.

[Moe Bedard]

they would not be able to speak with you....that is why you are only able to speak with the bk dept............a bk prevents them from speaking with you, because they are a debt collector.