Home Loans and Support

Advice on Special Forbearance Plan

Discussion in 'Wells Fargo Home Mortgage' started by o0neplusultra0o, Aug 18, 2011.

  1. o0neplusultra0o

    o0neplusultra0o LoanSafe Member

    Ok, so I called Wells in a proactive approach and try and apply for HAMP. I have an FHA with a 4.25 rate. I am current on my loan as of now. They wanted to me go on a reduced payment plan (the rep could not confirm i would be protected from a bad credit reporting/delinquent on slow pays) so i denied that. I was then transfered to the Home Preservation Dept. The Home Pres Dept assured me it will show on my credit as a slow pay BUT with CN and show I was current and not delinquent. Im not sure how this will effect my credit, which is very good currently.

    Now he said that I had to do the 3-9 month trial period of reduced payments to show i can make the payment. after the trial period i will then be reviewed for an in-house refi or HAMP.

    My question is what can I expect? Will this hurt me credit wise? Do I have and protection?

    He went on to tell me there would be no ballon payment at the end of the trial it would be rolled into the loan mod.

    right now the finical info that they took from me shows -$250 monthly. My DTI mortgage to income in about 48%

    What does everyone gather from this?

    I spoke to a woman in the Executive Mortgage Dept. She told me I would know going into my trial period if i was qualified for a HAMP. Right now under this Special Forbearance Plan I'm not sure she was correct.

    I do not want to get screwed by this Forbearance and I know nothing about it because up until this point I have only researched the HAMP process.

    Thanks in advance everyone!
  2. texaslady2011

    texaslady2011 LoanSafe Member

    Let me preface by saying I can only attest to my situation with my lender. Initially, we were given a deferment and then forebearance and our payments were reduced due to my husband's illness. Well, what I didn't realize was that they were reporting the payments as late. By the time the forebearance was over, we were 18k in the hole, so they added it to the end of the note, extended out the loan which drove our balance up. When we decided to sell, we couldn't sell so we had to do a short sale b/c we could not cover the cost of the loan. So beware! If your long term intention is to keep the property then it's helpful IF they do not report late....otherwise, they report late AND you will end up underwater. Just our experience. Best wishes to you :)
  3. cali92262

    cali92262 LoanSafe Member

    I had a special forbearance period with B of A, but they did agree to no late fees and no late reporting, during the 3 month period. Supposedly, they were reviewing me during the 3 month period. To be honest, it accomplished nothing, they reviewed nothing, but I will say, they didn't report anything late during the period. I'm still puzzled as to what was their point in putting me in this special forbearance. That was my experience, so I hope you have a more positive solution and experience with Wells Fargo. You never know until you try.
  4. o0neplusultra0o

    o0neplusultra0o LoanSafe Member

    Texas, sorry to hear that, hope things have gotten better...in regards to your mod where you late coming into your trial period or current? I was told they would be reported as a "slow pay" but say that i was current... which makes me feel like they could still impact my FICO.

    Cali, I was told it was to make sure i could make the payment and help me try and better my position to again be able to afford the full payment on my house. I was told also there would be no ballon payment, I will have to clarify as to what and how the difference is made up if I am rejected.
  5. texaslady2011

    texaslady2011 LoanSafe Member

    We were not late going into the modification. When my hubby got sick and lost his job, we had enough in savings to cover a couple of payments. I applied for the modification with documentation and were given the forebearance. The first reduced payment was the first month we didn't pay a full month. I hope that makes sense. They started reporting it late on the third month. Their reasoning was that two payments equaled on month. It was a mess!!!!!! How are thngs going for you?
  6. lynnd

    lynnd LoanSafe Member

    Not sure where you are with this as it's been a few weeks, however, from my experience with Wells (I'm in Calif), I accepted the forebearance as I was unemployed AND I was told once I was successful they would automatically give me a modification. Well it was reported as a negative on my report. This is in 2009 and it's still showing negative on my report even though it was a mutual agreement and in contract with Wells, I paid the low payment on time. 2nd, when the forbearance was complete, I did NOT get a modication after that AND they wanted payment in full for the difference of the forbearance otherwise I was considered delinquent on the loan which would be more of a negative hit. I owed a lot more all at once. If you are planning to keep the property, I would look at other options. This forbearance from Wells was just like a band-aid on a broken leg! I did get a mod on my first much later but it took A LOT of effort on my part, approx. 7 attempts and escalations. Wells is expert at denying mods and coming up with every reason why they can't whether it's in house or HAMP. The best to you and your situation.
  7. o0neplusultra0o

    o0neplusultra0o LoanSafe Member

    I did not except the special forbearance and requested I be pushed for a modification, today I was pre approved for HAMP (took about a month) docs are being sent out to start the process. I had read to many horror stories on the SF programs about balloon payments foreclosures ect... I posted in the loan mod forum with further details


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