Modification of 5 in 1 arm Wells Fargo SUCCESS!!

[tomser]

Originally Posted by *** Damiano

Hi 5in1arm,



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

There is a uniform set of guidelines and steps that the participating servicers and investors are following to modify loans on a principle, owner occupied residences, to a target mortgage payment on a first lien alone, of 31% of gross income..............a principal reduction isn't what they are using to get there.............the very last step if they can not get to the 31% by lowering the rate and extending the terms, is a principal forbearance which takes the principal from the front end of the loan and places it on the back end in a balloon payment that will not be due untill you sell the home or refi the home..........

Try contacting the executive team instead to see what the options are for modification on your loan type........
1-800-853-8516


To be eligible for a Home Affordable Modification, a borrower must:

• be an owner-occupant in a one to four unit property, and have

• an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties, consult the Guidance for limits),

• a loan that was originated before January 1, 2009,

• a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of the borrowers' gross monthly income, and

• have experienced a significant change in income or expenses, to the point that the current mortgage payment is no longer affordable.


Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation.



Here are the steps being taken and links to the program information............

In summary, participating servicers will (in order):

• Determine that a loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:

• Obtain sufficient income information to determine if the borrower has a front-end debt-to-income (DTI) ratio of 31% or greater (verbal income may be accepted for initial evaluation subject to verification prior to final approval). If yes:

• Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer – but not late fees or other default fees charged by the servicer;

• Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;

• Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:

• Put the borrower on a trial modification at the new interest rate and payment for three months.

• If the borrower is current at the end of the trial modification period, the servicer will execute a modification agreement that includes escrows for taxes and insurance even if the prior loan was not escrowed.

Making Home Affordable - Payment Reduction Estimator

hi ***

I am new and i need your help. I have 3 loans at wells farg with all interest only loans. these 3 loans are going to rest new higher rate in coming month of September

first is pricipal resident $550k
second is rental home $$450k
third is also rental home $ 460k
and line of credit second $300k

keeping my primary resident is my upmost goal.

I ran primary home DTI front end is 43% and back end is 71% ( income $5100 and PITI expenses is $ $2183 and $ 3603 back end)

My question to you is that when I prepare all thoes income and expensise
and hardship letter; I need only the primary resident excluding those rentals and second mortgage. so i only apply for LM for primary resedent only ??? could you kindly explain to me what kind of chance and how to present for LM . I am preparing now to submitt to Lose mittigation

thank you very much

tomser

[tomser]

hi ***

I am new and i need your help. I have 3 loans at wells farg with all interest only loans. these 3 loans are going to rest new higher rate in coming month of September

first is pricipal resident $550k
second is rental home $$450k
third is also rental home $ 460k
and line of credit second $300k

keeping my primary resident is my upmost goal.

I ran primary home DTI front end is 43% and back end is 71% ( income $5100 and PITI expenses is $ $2183 and $ 3603 back end)

My question to you is that when I prepare all thoes income and expensise
and hardship letter; I need only the primary resident excluding those rentals and second mortgage. so i only apply for LM for primary resedent only ??? could you kindly explain to me what kind of chance and how to present for LM . I am preparing now to submitt to Lose mittigation

thank you very much

tomser

[SanJoseGal]

5/1 in1 arm-

Did you show a surplus or deficit in your income? I have got denied twice due to a deficit in my income. I was told I should show a small surplus.

[5in1arm]

Tomser,
Call the executive team at 1-800-853-8516. An individual executive team member will assist you and give you thier specific fax number email address. There is not one general fax number for the executive team.
Hope this helps you, take care.

[5in1arm]

SanJoseGal,

I was honest with them and told them that I was close prior to my paycut (just barely making it) and then after my paycut it put me behind(deficit) about $500 a month. I think the thing that helped the most was that I had a 5in1 interest only loan, and as you know a lot of these loans were predatory in nature. I think this coupled with the fact that my home appraised about 200k less than what we paid for it helped us get the mod. I truly think they look at it like this. If I am upside down on my home 200k and I dont have anything invested in this home, and I walked away they stand to lose a lot of money. But some people are trying to modify there home with 150k equity and the bank will gain a lot of money if they let you lose the home. That is business 101. I had a wells fargo customer service person tell me that some people intentionally get behind and have 50k in their checking acount and think they are going to get a mod.
I truly think each persons situation is different. But if your home is upside down. Your investor agrees to the modification. They have more to lose than to gain. They will work out a modification. Unfortunately there are people that will lose there homes because they cant afford to pay their mortgage that have lots of equity and the bank will clean up on the home owners lose.
Anyway hope this long version answer helps. Take care.

[SanJoseGal]

Does anyone have executive management email addresses to people at Wells Fargo?
If so could you provide them.

Thanks so much!

[slbedell]

I am not positive these are executive office people - Moe or someone can confirm - but I copied these from another post a while ago.

jerald.banwart@wellsfargo.com

mary.coffin@wellsfargo.com

I don't have ALL my paperwork here with me at work, but I could swear that my executive forbearance letter came from Mary Coffin. Then again, I forget why I walk in a room half the time anymore. Foreclosure bearing down on you kinda makes you crack a bit.

[SanJoseGal]

5in1arm-

We submitted our 3rd attempt to a loan modification to Wells Fargo last week. We have a 5 year 1 arm IO as well. The good news is they actually ordered a BPO this time. This is the first time we showed a small surplus in income, so that did work so far.

Did they order a BPO for your loan mod process? If so how long did it take to get that process complete? What is the next step?

Thanks and congrats!

SanJoseGal

[tomser]

Originally Posted by SanJoseGal

5in1arm-

We submitted our 3rd attempt to a loan modification to Wells Fargo last week. We have a 5 year 1 arm IO as well. The good news is they actually ordered a BPO this time. This is the first time we showed a small surplus in income, so that did work so far.

Did they order a BPO for your loan mod process? If so how long did it take to get that process complete? What is the next step?

Thanks and congrats!

SanJoseGal

what is BPO mean ???

[cahomeowner]

Originally Posted by tomser

what is BPO mean ???

BPO is a broker price opinion...it's like a quick appraisal to check the value

[cahomeowner]

Originally Posted by SanJoseGal

5in1arm-

We submitted our 3rd attempt to a loan modification to Wells Fargo last week. We have a 5 year 1 arm IO as well. The good news is they actually ordered a BPO this time. This is the first time we showed a small surplus in income, so that did work so far.

Did they order a BPO for your loan mod process? If so how long did it take to get that process complete? What is the next step?

Thanks and congrats!

SanJoseGal

you should ask if you qualify for their HAMP program....this the Home Affordability Modification Program which is obama's housing rescue plan

[Tapeoka]

Hi everyone -

I am in SF Bay area and just submitted my loan modification papers on July 27, 2009. We have an 80/20 loan with Wells Fargo and the 1st loan is an ARM and the second one is a balloon payment and both are due to reset in 3 years. So far everyone at WF have been really friendly and I was told my papers have been assigned to a negoitator already and it will take 30-90 days for them to get back to me. We are current right now but don't know how much longer we can keep making our interest only payment on both loans which totals $5,000 a month. We were told by WF that we qualified for a loan modification due to income reduction and the decrease in value of the home. Our original loan was for $620,000 and now the house is valued at $400,000. I am keeping my fingers crossed and hope I don't get sucked into the loop hole and forgotten like many. Weird part is the first loan which is the big one is with WF Mortgage Dept and the second loan is with WF Equity Dept so I had to contact the Equity Dept separately and let them know I'm in the middle of applying for a loan modification and they immediately slashed our payments in half and said that it will be like that for 3 months which will give us time to hear back on the loan modification and at that time they will modify the second loan to the same terms as the first one. They said that during this period we will get a default notice because we only paid half and to ignore it because WF will not report it to the credit agencies and that it will show payment in their systems. I asked for it in writing and they said notice will be sent out confirming the set up. I'm thrilled about the reduced payment but really nervous about the whole late notice and them not reporting to the credit agency. It doesn't sound legit to me. Anyone have similar experiences??? Just don't want to find out we are in default because we were given false information by the rep which sounds like many have been lead down this road before. What should I do?

[MaryJune123]

As I mentioned in a prior posting, I have been denied twice by Wells Fargo. The first was in late 2008 because it was not in the investor's best interest. The second was recently just a couple of weeks ago and this time the denial was because it was outside of the investors guidelines. In both cases, as soon as the denials were issued, I was hounded by phone calls by Wells to short sale my home. Thanks to this forum, I was able to call the Executive office. The kind person on the phone explained to me that the investor would not modify my loan because I could not afford to make the payments because my "negative" or "short fall" was $2,500 a month and that was to far of a bridge to gap. As I saw it that basis was faulty because I have NEVER been late on a mortgage payment. I asked them to provide me with their calculations how they came up with the $2,500 shortfall but they only sent me a copy of my financial worksheet which I completed with HUD's assistance. They did tell me that "something did not match". Their computer screen did not match "something". I don't know what specifically did not match. I also do not know how they calculate a shortfall of $2,500 as I do not calculate a $2,500 monthly shortfall. Does any one have information as to "how" they calculate your debt and income to determine the negative? I also am wondering why the worksheet Wells gives you to complete asks for NET salary and not GROSS salary? When you apply for a loan with them in conventional transactions, the GROSS is considered and not the NET. Wells did send me a new packet to complete but before completing, I need to arm myself a little better. Any suggestions?

[luvmyhorse]

Does anyone who has done a mod know how adjusted gross income plays into the formula. They keep asking for gross, but when I called they asked for AGI.?
My agi it practically nothing, will this rule me out? Can they add things back in?

[Tapeoka]

Just wanted to give everyone my lastest update as of August 5, 2009. We submitted our loan modufication documents on July 21, 2009 and since then I have been calling WFB everyday for status and to stay on top of them. Like others I've gotten a different answer everytime so instead of playing the runaround game I contacted the executive office who referred me to The supervisor for loss mitigation, she was really helpful and told me she was with the MAHP which is government backed and that my loan is a conventional loan and that she will put me in touch with the right person for that. The gentleman she connected me to told me he will personally walk my paperwork through and made sure it gets assigned to a negotiator today (now I've been told by all the others I spoke with previously that it was already assigned and pending review) because he says he sees that it was assigned but the person has not gotten my file yet. He gave me his direct line and said I should hear something within 2 weeks from today and if I don't to call him. Great that is the first loan. Now our second (we had the 80/20 jumbo no $ down) I was told to contact the Equity Dept because they are separate which I did last Thursday. I told them we are in process of loan mod on the first and they immediately cut our payments in half for the next three months pending approval of loan mod on first. I got confirming letter from them yesterday saying that I need to contact them once a month to let them know status of loan mod on the first and upon approval they will then modify the second to reflect whatever the new terms are on the first. If we got denied then we will go back to the old payment amount. Got call from Tiffany Price yesterday saying she is with Equity Dept and that our file has been assigned to her for modification and to call her back. I have called and left several voicemails yesterday and today so if I don't hear back by tomorrow I will contact Executive office and see if they can get me to a supervisor. So far it's moving along. Will continue to keep you all posted. Keep your fingers and toe crossed for us and many prayers!

[cahomeowner]

Originally Posted by Tapeoka

Just wanted to give everyone my lastest update as of August 5, 2009. We submitted our loan modufication documents on July 21, 2009 and since then I have been calling WFB everyday for status and to stay on top of them. Like others I've gotten a different answer everytime so instead of playing the runaround game I contacted the executive office who referred me to The supervisor for loss mitigation, she was really helpful and told me she was with the MAHP which is government backed and that my loan is a conventional loan and that she will put me in touch with the right person for that. The gentleman she connected me to told me he will personally walk my paperwork through and made sure it gets assigned to a negotiator today (now I've been told by all the others I spoke with previously that it was already assigned and pending review) because he says he sees that it was assigned but the person has not gotten my file yet. He gave me his direct line and said I should hear something within 2 weeks from today and if I don't to call him. Great that is the first loan. Now our second (we had the 80/20 jumbo no $ down) I was told to contact the Equity Dept because they are separate which I did last Thursday. I told them we are in process of loan mod on the first and they immediately cut our payments in half for the next three months pending approval of loan mod on first. I got confirming letter from them yesterday saying that I need to contact them once a month to let them know status of loan mod on the first and upon approval they will then modify the second to reflect whatever the new terms are on the first. If we got denied then we will go back to the old payment amount. Got call from Tiffany Price yesterday saying she is with Equity Dept and that our file has been assigned to her for modification and to call her back. I have called and left several voicemails yesterday and today so if I don't hear back by tomorrow I will contact Executive office and see if they can get me to a supervisor. So far it's moving along. Will continue to keep you all posted. Keep your fingers and toe crossed for us and many prayers!

I thought the executive team only deals with the 1st? keep us posted

[cahomeowner]

Originally Posted by tomser

hi ***

I am new and i need your help. I have 3 loans at wells farg with all interest only loans. these 3 loans are going to rest new higher rate in coming month of September

first is pricipal resident $550k
second is rental home $$450k
third is also rental home $ 460k
and line of credit second $300k

keeping my primary resident is my upmost goal.

I ran primary home DTI front end is 43% and back end is 71% ( income $5100 and PITI expenses is $ $2183 and $ 3603 back end)

My question to you is that when I prepare all thoes income and expensise
and hardship letter; I need only the primary resident excluding those rentals and second mortgage. so i only apply for LM for primary resedent only ??? could you kindly explain to me what kind of chance and how to present for LM . I am preparing now to submitt to Lose mittigation

thank you very much

tomser

I had a similar situation like yours. My goal was save to my primary residence so I ended up short selling the rental homes. That took almost a year believe it or not. I could write a book on that whole short sale process and how flawed it is.

in any case I listed everything in my financials and hardship. the bank is going to run their own financials from the credit reports so those loans will show up. list everything. decide if you want to sell those rental properties or hold on to them.

look for my other postings and you can read all about my journey.