Wells Fargo's Profit and Loss statement

[whorl1quote]

Hi I submitted loan mod to Wells Fargo last months and now I lost my job. However I have had a side business that generates some income. I wonder if a self-generated Profit and Loss will be sufficient to provide to WF? Will they ask for account-certified Profit and Loss or bank statement or any other things to back my Profit and Loss?

I have Article of Incorporation, but the bank statement is messy because I used the same account for business and personal. My business started earning more money in the past three months thus last year's tax return showed minimal profit.

Any opinion is appreciated!

[Maurice Bedard]

A P&L with supporting bank statements and or actual tax returns showing this income. If it is all cash, most likely they will not accept it because they can't prove this income.

[whorl1quote]

Thanks, but my bank account is very messy as it has both business and personal transactions. I have no problem giving the lenders the statement but I will have to identify each transaction and calculate one by one to get to the right numbers in the Profit and Loss Statement.

Do you think the bank will even look at my bank statement's details?

[Maurice Bedard]

Depends??? I have seen them consider and approve based on these type of situation and some not even look. Some do both and there is no rhyme or reason. I guess if you don't try, you'll never know

[Murray12]

Perhaps you can talk to an attorney or accountant to help you do a profit/loss or whatever is required. Do you have receipts?

On a side note - I remember from business school that you can lose your Corporation's liability protection if you do things like comingle accounts. Not that I haven't done the same thing .

[madresmustang]

Hi I submitted loan mod to Wells Fargo last months and now I lost my job. However I have had a side business that generates some income. I wonder if a self-generated Profit and Loss will be sufficient to provide to WF? Will they ask for account-certified Profit and Loss or bank statement or any other things to back my Profit and Loss?

I have Article of Incorporation, but the bank statement is messy because I used the same account for business and personal. My business started earning more money in the past three months thus last year's tax return showed minimal profit.

Any opinion is appreciated!

Yes they do accept P&L from self employed homeowners. Also with that you need to have a personal budget laid out. Now the warning I sent them papers in July via interoffice fax from my local WF. Now I have had them request them again, then they didn't like the way my household budget laid out, then they couldn't see it well enough, so emailed me their own form. Filled 4months worth of those out, faxed again, then a request for July P&L Monday. Already sent twice now asking again. Never explaining whats happening to the ones they have.

Now it looks like they possibly are going to deny my modification, cause of paperwork they say I haven't sent them.

So you have to stay on top of it. Get a specific person you are sending docs to, don't mail to a mailroom at their office. Good way for it to get lost since interoffice faxes seem to be getting lost. Keep copies of all communications with them. I would record the conversations with their knowledge of course. I started doing it via email so I could keep a written record of what they've done.

[whorl1quote]

Thanks for the response.

Do you need to have your accountant certify P&L or did you just come up with your own P&L with the backing from your bank account activities?

Also when you mentioned have your personal budget laid out - are you referring to the "financial worksheet"? It's your income and expenses per month which will let them know your monthly budgeting and if you have a surplus or negative.

I always FAXed them stuff. So far they seemed to always got the stuff I faxed. Just that my partner is now laid off and we can no longer provide any paystubs but just the P&L. Previously we did not disclose the P&L income. Now I guess we just have to disclose it.

Do you have their email? I never know I can email them. I always call and then fax documents.

Yes they do accept P&L from self employed homeowners. Also with that you need to have a personal budget laid out. Now the warning I sent them papers in July via interoffice fax from my local WF. Now I have had them request them again, then they didn't like the way my household budget laid out, then they couldn't see it well enough, so emailed me their own form. Filled 4months worth of those out, faxed again, then a request for July P&L Monday. Already sent twice now asking again. Never explaining whats happening to the ones they have.

Now it looks like they possibly are going to deny my modification, cause of paperwork they say I haven't sent them.

So you have to stay on top of it. Get a specific person you are sending docs to, don't mail to a mailroom at their office. Good way for it to get lost since interoffice faxes seem to be getting lost. Keep copies of all communications with them. I would record the conversations with their knowledge of course. I started doing it via email so I could keep a written record of what they've done.

[madresmustang]

Thanks for the response.

Do you need to have your accountant certify P&L or did you just come up with your own P&L with the backing from your bank account activities?

Also when you mentioned have your personal budget laid out - are you referring to the "financial worksheet"? It's your income and expenses per month which will let them know your monthly budgeting and if you have a surplus or negative.

I always FAXed them stuff. So far they seemed to always got the stuff I faxed. Just that my partner is now laid off and we can no longer provide any paystubs but just the P&L. Previously we did not disclose the P&L income. Now I guess we just have to disclose it.

Do you have their email? I never know I can email them. I always call and then fax documents.

I do my own through my computer software that compiles the P&L, cash flow all the reports needed for business and IRS. That was fine with them.

Are you a DBA, LLC, Partnership, or Corp? This will depend on how your personal budget will be. Personal budget means seperating your business expenses/profits to showing your personal income from it.

So take your profit or salary you pay yourself and show how that will pay your bills. I have business in home so my business pays for a certain % of household expenses, I show the other portions as my owners draw for my income.

But they do want to see that monthly home budget. Make sure to add up all your expenses, items like food, auto expense, medical even leaving funds for the personal hygiene products, cleaning products all necessary in our lives.

As for the email address I was given the email address by the person helping me. But I have found that all of them I've delt with have emails that go firstname.lastname@wellsfargo.com

Also here's the phone number for the Office of the Presidents 1-800-853-8516 use this number if you aren't getting any answers or response, put you into foreclosure, or you start getting phone calls about collecting past due. The staff in this office will step in do review, stop foreclosure while in review. It's the next step up the ladder, the basic customer service is doing their best but only reads what's on the screen they aren't processing paperwork.

Hope this helps I'll be praying for you this is a long process that can stress you out completely.