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Wells Fargo Denied My Mod Because I dont make enough...

Discussion in 'Wells Fargo Home Mortgage' started by ShouldIDoIt, Mar 27, 2012.

  1. ShouldIDoIt

    ShouldIDoIt LoanSafe Member

    In December 2011, I was denied modification because I was current in my mortgage payments and there was no risk of eminent default. I am now 4 months behind. I reapplied for assistance and they rejected me, this time because I don't make enough money. It is due to the fact that my mortgage is interest only and they would have to adjust it too low in order for me to be able to afford principal, interest, property taxes and insurance. One piece of information I left out, simply because I won't know for a few months, is my annual bonus. I can estimate it based on last year which would increase my monthly gross income by about $600. I can also take in a roommate, though I'd rather not. Unfortunately, I dont have any friends looking for a place to stay and I dont feel comfortable bringing in a stranger. And even if I include my bonus and rental income, what's to say I'll be showing too much income and I'll get denied again...What is the bank looking for? I just don't know what to do...I'm exhausted, and depressed about this whole situation. I already received a demand letter so my understanding is I can go into foreclosure at any point. Any suggestions?

    Monthly Gross Income $4,625
    Monthly Expenses $5,300
    WF Mortgage $355,000, interest only 6%
    Monthly payments including interest, RE taxes and insurance $2,606
    Citibank HELOC $83,000
    Interest only payments $325
    FMV of property $350K (according to Zillow)
  2. spookicatsocal

    spookicatsocal LoanSafe Member

    Hi ShouldIdoit,

    I'm not sure if this will make you feel better or worse but at a minimum you will know you are not alone. I am in a little bit different situation than you since my house is about $230,000 under water. I just currently finished my 5th....yes I said 5th loan mod application with Wells Fargo (America's Servicing Company). The first 4 times I applied were about two years ago. Denied repeatedly for calculation mistakes on their part the first three times. On the fourth application when they finally got my numbers correct they said I make too much money. They gave me the same line about not having defaulted and not being at risk of imminent default. At the time I was to scared to stop paying and I could pay as long as I continued to work 6 days a week......I continued to plug along. Now two years later I started the process again. I told them I was fired from my second job but really I quit. On Saturday I received a letter denying me for the HAMP mod. Last night My "single point of contact" (that stupid phrase annoys the crap out of me) called and said I had been approved for an in house mod........drumroll please..........my payments will go up because they will add in my ins/taxes and won't do a principle reduction. ROFL!!!! "oh but you will be given a great interest rate reduction from 6.75 to 4 percent" she said.
    When I told her that I would have to stop paying my mortgage and let it foreclose she didn't seem to care at all. She said and I quote "well yes foreclosure or a short sale. Have you considered not paying on your second anymore? Then you could continue to pay the first and probably the second will just settle with you anyway." I honestly felt like it was a dream. My mortgage company telling me not to pay my other mortgage company?????? Good stuff
    In other words Wells doesn't seem to care very much about keeping you in your home. I will be part of the April walkers, without fear finally.
    If you really want to stay in the house maybe apply again and suddenly come up with some imaginary renters for extra income.
  3. Cat Damiano

    Cat Damiano Mortgage Wars

  4. ShouldIDoIt

    ShouldIDoIt LoanSafe Member

    Sorry to hear about your situation Spookicat...We're just two of countless numbers of people in similar situations. It took 4 months for the bank to reject my HAMP request at which point I was told that I had to be at least 3 months behind before I would even be considered for modification. After the third month, I reapply and they say I don't make enough income. This is all very frustrating. I know that if I received assistance, I could manage my expenses and afford the house but it just doesn't seem to be very promising for me...To be honest, the house is about $100K under water, it's probably not worth the fight....I'm just trying to save my credit and do the right thing by trying to pay the mortgage but the banks aren't willing to help me so I may just have to walk away...

    Thanks for your story and good luck to you
  5. ShouldIDoIt

    ShouldIDoIt LoanSafe Member

    Cat, I posted my situation in that forum. Thanks for the help.

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