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Wells Fargo Loan(s) Reduction- Has anyone been successful?

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by Tearmup, Oct 17, 2008.

  1. Tearmup

    Tearmup LoanSafe Member

    We currently live in California and have an 80/20 loan- both with Wells Fargo. We paid $545,000.00 for our home. The current value of our home is $288,000.00. We have been approved for a short sale, but three buyers have fallen through.

    I have written the executive team of Wells Fargo and asked them to do a loan reduction so that we can keep our home. According to Wells, due to the policies that their investors have established, they aren't allowed to do this. I then inquired about the new laws that are supposed to help homeowners like me and Wells doesn't have any current policies on how to deal with the new law(s) yet.

    I am angry that they would approve a short sale for someone else to purchase my home when in fact- if they reduced my loan, they would lose less money.

    I did have a loan modification approved, but chose not to take it because the value of the home had dropped so much. I don't see me living in the home for the next 30 years and the home may never be worth what we paid for it. It just doesn't make any financial sense.

    Has anyone had success in getting a loan reduction with Wells Fargo? Is there any way to contact these investors?

    Thanks!
  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hi Tearmup,


    Welcome to the forum and thank you for joining..............
    We have not had any principle reductions from the investors on Wells Fargo loans..................the investors also do not deal directly with customers, that is why they hire the servicing companies to take care of their investment portfolios.

    With the new FHA program that began on October 1st in order to qualify, you would need to negotiate with the second lien to have them release...............

    I have a first and second mortgage on my home. Can I still apply for H4H?
    Yes, however, all your existing lenders must agree to release the liens against your home.
  3. red2720l

    red2720l LoanSafe Member

    A reduction with WELLS FARGO are you kidding me?
    We have been trying for almost a year.
    They rather see you in the street than reduce your payment.
    They need to have more people go into default so they can go out of business.
    Fat chance! the fat cats keep getting bailouts we don't
  4. parthabn

    parthabn LoanSafe Member

    I too have two loans with Wells Fargo, 80/20. I contacted them for loan modification few months back and they had me write hardship letter, fill-up worksheet for monthly expenses, etc. and then told me that they would not help me cuz I don't qualify. Anyway, I also asked for principal reduction and they told me that they do not do that and they would rather foreclose the house or do a short sale but WILL NOT help me cuz I signed the loan contract with them. Wow, they are willing to take a loss on the loan but not help me!!!!

    Anyway, I am wondering if you guys have stopped making payments on your loan? And do you know how long it takes for Wells Fargo to foreclose the property, is it the same 4 months or do they take more that????
  5. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    the timeline would follow the foreclosure laws in your state....................

    what state are you in?
  6. parthabn

    parthabn LoanSafe Member

    Hi Cat, I am in CA!!!
  7. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Here is a link to the timeline in your state...........

    http://www.loansafe.org/forum/foreclosure-laws/398-california-foreclosure-law.html

    a lender will usually send out an NOD after the 90 day late........but that part is up to the investor...........
  8. helpme

    helpme LoanSafe Member

    Wells Fargo Principal Reduction Possible Now?

    I know there was a settlement just recently with Wells Fargo about the robo signing issue and part of the settlement was to do principal reductions for Wells Fargo customers.

    Im in CA and my home was in default a couple years ago and Wells Fargo approved a loan mod for us but now the payments are going up (as part of the loan mod agreement), and we were really struggling to even make the lower loan mod payments.

    We have a first with wells fargo with original loan of $375,000 but now it was loan modded at $399,500. The second is with Chase.

    We have been current since the loan mod 2 years ago but have struggled to make payments some months.

    Is there a way we can get a principal reduction and what is best way of approaching wells fargo to do so. I would love to get rid of the second with chase which loan amount is $20,000 too.

    The house is worth $300,000. So we are about $120,000+ upside down on our home.

    If any of you have ideas would greatly appreciate it..

    Concerned homeowner..

    HelpMe
  9. chi_guy

    chi_guy LoanSafe Member

    Wells Fargo Principal Reduction..

    I just got off the phone with Wells Fargo about this. They told me they have no principal reduction program. The guy I talked to said I should call my local HUD to see if they have one.

    Wells Fargo is horrible. They don't want you to keep your house. The first thing they asked me is if I looked into a into a short sale. I told him that I don't want to get rid of the house but being $100,000 underwater isn't financially beneficial to me. They would rather give the house to someone else at a reduced principal than let you keep the house at that reduced principal.
  10. frustratedhomeownerca

    frustratedhomeownerca LoanSafe Member

    I too have a loan with Wells Fargo, I have talked to them on numerous occasions regarding loan mod, I was told once that since I am not in default they cannot help me. They want me to ruin my excellent credit rating before they will help me. I also have a 2nd with Green Tree they are just as bad. The sad thing is I have had loans with Wells Fargo off and on over the years and it seems every time I get a loan with a new company they sell my loan and to my surprise I am with Wells Fargo and it seems no one wants to help those of us making our payments every month. If I had a loan secured by Fannie Mae or Freddie Mac it could get help any day of the week. Is there anyone out there that will help someone like me?
  11. chi_guy

    chi_guy LoanSafe Member

    My loan is secured by Fannie Mae. I called them first. They told me I had to call Wells Fargo. Wells Fargo said they have no principle reduction program but I checked online and there are numerous articles saying that they in fact do have a principle reduction program. It's really frustrating.
  12. frustratedhomeownerca

    frustratedhomeownerca LoanSafe Member

    The sad thing with Wells Fargo is they don't want to help us all they want to do is take your house from you and sell it in a short sale.

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