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What happen after the Bank does a title search at the end of 3 month trial?

Discussion in 'Wells Fargo Home Mortgage' started by Mission_impossible, Aug 21, 2012.

  1. Mission_impossible

    Mission_impossible LoanSafe Member

    We started the home modification with Wells Fargo in March 2012 after one of two of our full time incomes were lost. We were current and continue to be current on our mortgage. We received a 3 month trail modification in June 2012. We made payments in June, July & August. We received a call from the bank in mid-August and were told by they were doing a title search on our property. We do not expect any liens. The bank also asked if anything has changed. We informed them that we were both employed full time again and were expecting our second child in a couple of months. They asked if we want to include the additional/second income in our monthly budget. If so, we would have to start the whole process over. We said no.

    So what happened after the title search? Will we need to resubmit all our documentation for the past 3 months?

  2. Cat Damiano

    Cat Damiano Mortgage Wars

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

    You shouldn't need to submit your docs again, the title search is usually the last step to the process just to make sure there have not been any other liens recently recorded other than the mortgage.

    Good Luck and please keep us posted when you receive your permanent docs!
  3. Mission_impossible

    Mission_impossible LoanSafe Member

    Thanks for the reply Cat Damiano! That's great news. The title search should be completed by mid-september. I hope it doesn't take much longer to get our permanent loan documents.
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    I hope not either, Good Luck and please keep us posted on how it goes!
  5. cmefly

    cmefly LoanSafe Member

    Cat - Why would any judgments on Title be an issue? When doing a Modification they are changing the terms of the original note, they are not paying off the existing note and giving the borrower a new loan as in a refinance.
  6. Cat Damiano

    Cat Damiano Mortgage Wars

    Because the modified loan would need to retain first lien position and in certain circumstances some liens are put in a priority lien status in front of the mortgage.
  7. cmefly

    cmefly LoanSafe Member

    When a mortgage is obtained any judgments or liens that get recorded after the original first mortgage are junior liens. Only when the 1st mortgage is paid off do the junior liens move up the chain. I think Wells Fargo is requiring people to pay judgments or get subordination agreements when there is no need to. A subordination agreement is only required when one pays of the senior mortgage and replaces it with a new mortgage as in a refinance. A modification does not do this as it only modifies the existing terms of the existing lien. Wells Fargo seems to be the only lender I know that is doing this. I know first hand that AHMSI/Homeward does pull a title report, but does not make the borrower payoff judments or obtain subordination agreements.
  8. Cat Damiano

    Cat Damiano Mortgage Wars

    Chase also requires re subordination of second liens so it isn't only WF.
  9. cmefly

    cmefly LoanSafe Member

    That is so crazy! They are just making it more difficult for people to modify. If I was the borrower or the junior lien company I would go tell them to take a hike. Unless the existing mortgage is being discharged completely, junior liens are not affected.
  10. Kenupstate

    Kenupstate LoanSafe Member

    Speak to a title rep but if there is a second or other lein a modified first can get pushed out of first position,the theory being that the first can't create a situation that will weaken the seconds position

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