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Loan modification with wells fargo

Discussion in 'Loan Modification' started by banyan, Oct 3, 2012.

  1. banyan

    banyan LoanSafe Member

    i am new member and this is my first posting. I wanted some advise on those with similar situation. Just lost my job, so wife is the only one working. we have an investment property that is under water. bought for $350K and it is now valued at $150K so cannot refi and cash flow is hurting. I would like to pursue a loan modification and would like to know what is it that wells fargo is looking for to qualify. your feedback would be greatly appreciated.

  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome and thanks for joining the forum Banyan.

    Are you looking to obtain a loan modification on your primary residence or your investment property?
  3. banyan

    banyan LoanSafe Member

    thank you. sorry if I was not clear on my question. it is actually on the investment property that I wanted the loan modification for. my second option on the investment property is to go for a short sale if the loan mod fails. I am ok with my primary residence.
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    One thing you will want to keep in mind is that when you apply for the modification WF is first going to review your account for the Home Affordable Modification Program (HAMP) which now allows investment properties to qualify. Do you currently have tenants in the property or is the house vacant?
  5. banyan

    banyan LoanSafe Member

    it is a vacation rental so it is for short stays. there is no long term tenant. one other thing, my load is not freddie nor fannie so I think this would not qualify for HARP 2 either, besides it is not my primary. You are correct, I heard I could try the HAMP and see if I qualify. This is where I get into nowhere because I do not know how WF would screen out applicants. what are they looking for? is there an FAQ that I can refer to? I wanted to make sure I understand the process before submitting my documentation.
  6. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Unfortunately, if the property is offered for rent only seasonal and is open for you to use when it is not occupied may make you ineligible for HAMP..

    HAMP TIER 2 Supplimental Directive

    Rental Property

    A “rental property” is a property that is used by the borrower for rental purposes only and notoccupied by the borrower, whether as a principal residence, second home, vacation home or otherwise (“rental property”). A rental property may be eligible for HAMP Tier 2 if:

    Two or more mortgage payments are due and unpaid (rental properties are not eligible for imminent default consideration);

    The borrower certifies that he or she does not own more than five single family properties;

    The rental property is currently occupied by a tenant as a principal residence or is vacant;and

    The borrower certifies in writing that he or she intends to rent the property to a tenant or tenants for at least five years following the effective date of any permanent modification and that he or she will make reasonable efforts to rent the property on a year-round basis if the property is or becomes vacant during such period. Notwithstanding the foregoing,during such five year period the borrower may sell the property, occupy it as the borrower’s principal residence, or permit any dependent, parent or grandparent to occupy the property as such party’s principal residence with no rent charged or collected.

    If a property is occupied as a principal residence by a legal dependent, parent or grandparent of the borrower but the borrower does not charge or collect rent, the property is considered a “rental property” that is occupied by a tenant for purposes of any HAMP Tier 2 requirement.

    A property that is or will be offered for rent on a seasonal basis and is available for use by the borrower when it is not rented is not eligible for a HAMP modification. Furthermore, a borrower must certify that he or she does not intend to use the property as a secondary residence for at least five years following the effective date of any permanent modification.

    The certifications described above are referred to in this Supplemental Directive as the borrower’s “rental property certifications.”
  7. banyan

    banyan LoanSafe Member

    It is actually on vacation rental all year round. I get a 1099 each year so it can be proven as a rental all year. The property is in Hawaii and vacation rental is usually the way to go.

    One other question. there are sites that offers Hamp loan mod services, with a fee of course. What do you think about these services? Is it worth it or is it as easy to do it yourself?
  8. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    There are so many sites and services that off loan modifications and foreclosure prevention services, but be aware that many are scams and most cannot accomplish any more than you can do on your own. Also some states prohibit these companies from charging you a dime before services are completed.
  9. banyan

    banyan LoanSafe Member

    thank you. there is also a site called "HOPE providing free services. is this a good site to use?
  10. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Yes, there are several non-profits such as HOPE and NACA that are legitimate and have helped countless homeowners around the nation.
  11. banyan

    banyan LoanSafe Member

    wanted to provide an update on my load mod with wells fargo. after 2 months of numerous calls and faxes after faxes of documentation, I finally got passed the documentation requirements. my application is now with underwriting. I am crossing my fingers that i get an approval. i was told it takes a few weeks for underwriting to complete.

    for those that are going through the same process with wells fargo, here is a link where you can go and monitor the progress of your loan modification.

  12. No_Kidding

    No_Kidding LoanSafe Member

    Hi banyan, I am just at the point where you were in Dec. Have you had any update from UW since?
  13. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    Personally I believe HOPE is hopeless. I have called this line a few times. One day the rep slipped and answered Wells Fargo Home Mortgage. I said I must have the wrong number I was dialing HOPE. He said you have the correct number. Hope is a scam.
  14. stephanies

    stephanies LoanSafe Member

    Jeffrey... I know you mean well, and I have tried to ignore all of the postings that are just so negative, hopeless and not in the spirit that this site is all about.... but please, can you try to be more positive and proactive with your postings?

    We that have been on this forum for more than 3 years now have all been through a terrible ordeal with our homes, but the newbies to this forum need our hope and optimism and proactive tactics to get them through their ordeals as well.....

    You have suffered a terrible loss, but that is your story, and does not mean that everyone else will end up with the same outcome... please, please, try and be more proactive for these folks of what they can do to help their situation, as you have some great experience that they could use for a positive outcome, vs the doom and gloom that I see coming from you these days...

    god bless you, and thanks for your dedication to this forum
  15. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    Stephanies....... Thanks for your post. I am not being negative just stating fact here. Many have been scammed by HOPE, just like the banks use HAMP to scam people. Check this link and read about it. http://www.loansafe.org/forum/loan-modification/38694-hope-now-hope-hotline-warning.html

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