Wells Fargo Modification Denied

[tomser]

hello i need help
I am new and i need your help. I have 3 loans at wells farg with all interest only loans. these 3 loans are going to rest new higher rate in coming month of September

first is pricipal resident $550k
second is rental home $$450k
third is also rental home $ 460k
and line of credit second $300k

keeping my primary resident is my upmost goal.

I ran primary home DTI front end is 43% and back end is 71% ( income $5100 and PITI expenses is $ $2183 and $ 3603 back end)

My question to you is that when I prepare all thoes income and expensise
and hardship letter; I need only the primary resident excluding those rentals and second mortgage. so i only apply for LM for primary resedent only ??? could you kindly explain to me what kind of chance and how to present for LM . I am preparing now to submitt to Lose mittigation

thank you very much

tomser<!-- google_ad_section_end -->

[madresmustang]

Well I will start by sharing a program I am currently doing to help me grasp the understanding of money do's and don'ts. You may have heard of it before Financial Peace University and Total Money Makeover by Dave Ramsey. Dave has been right where you are before with the real estate issues.

I would say yes try to save the residence and sell the rentals. Growing up my parents had rentals houses, 4plexes, commercial. I know that for a time they can make you money but my parents sold them because they started to become a drain and this was before the interest only loans.

Is your primary residence a fixed rate loan? For how many years? It maybe that the main residence will need to be sold if rentals can't be sold and settled with WF or another bank. Is there any other liens on the primary besides 1st and 2nd (equity loan)?

We can only hope Sept. would be the only increase, but I feel interest rates are going to climb more before the end of the year.

[jallen]

I finally finished all the paperwork for the loss mitigation. It will go out UPS on Monday. Whew, I was totally drained when I finished. In the meantime, I have contacted two other lenders just to make certain I am doing the right thing...

If the mitigation deal goes through and I decide to sell the house, how does that work? I can't believe in the middle of all this, that we had a major pipe break in the recreation room. Thank goodness our insurance company is responding.

A very good friend of mine told me..."Hey, this is nothing but a small bump in life"....What the heck would a big one be?

[bfoster]

Hello. Yesterday evening I received a call that our modification request from WF had been denied....four months after I lost my job and hardship letter and packet was sent in. Was told that all programs were looked at but no solutions would be affordable to us due to a ridiculously high DTI, which didn't seem possible. I questioned the methods and reasons to no avail. I found this site and called the Executive Office this morning.

I spoke with a helpful rep that will review the file and look for alternative solutions. He will send a packet out overnight that will include updated income and expenses. As for the high DTI, I found out that they were not including any of my income (only my wife's) due to a combination of unemployment/self-employment over the last four months and that they were counting our average monthly credit card bill as an expense in addition to monthly food, transportation, insurance, and reimbursable expenses, which are all paid for with the credit card, which is paid in full each month. So, with some explanation I should be able to significantly lower the DTI.

Both the exec office and the rep that informed me of the mod denial mentioned that a rate reduction to 2% was the most they could do. In my initial hardship letter I proposed a principal reduction from $328 to $197 and a 30 year fixed at 5.25%. I asked the exec office rep to review this request and he said he would, but it sounding like principal reduction is unlikely. Quite simply, if they don't meet that or something similar we will walk away, as we owe $410 and current market value is about $195...loan is interest-only, so no loss there. However, our 2nd (HELOC)of $82,000 (also through WF) was refinanced so it is no longer condisedered purchase money and WF could come after us for that. Has anyone had any luck with principal reduction?

This site has already been a great resource. Any suggestions or advice are appreciated.

[ugh_2009]

I don't understand how Wells Fargo can keep denying people base on back end DTI that they usually calculate wrongly with a 1 minute phone interview. It is not part of the HAMP guidelines and can only be used if someone does not pass the NPV test. Only then, it is up to the servicer discretion to move or not move forward with the mod.

And with your loan being so underwater you should have passed the NPV test easily.

[jallen]

Hi
Could you explain what you just said...I am a little fuzzy on the abbreviations your using...but the information sounds very valuable...

[moonmaiden]

This is the first time I have used this forum. I have little experience with it I have little experience with loans and I really am fed up with wells fargo. My basement collapsed 3 months after I bought my home. I fought the insurance company to pay for it they did. I hired a contractor who did awful work and halfway thru it I fired him. The bank wont give me the rest of the insurance monies to finsih the house. I have a lawyer trying to get it but it has been a year now and I owe him 5000 dollars now. That was the first loss. The bank has stolen my money I tried to repair what I could it cost thousands and still no money from the bank.
Then I lost my job I found another one but was out of work for 2 months. This job pays half what the last job did. I asked the bank for a moritorium and a loan mod. I got the moritorium I think but I think moritorium means mortiurium. They want partial payment for 3 months which in my case is 1260 per month and then they want 8000 dollars in november. Gee if I had that kind of money I would have been the loan. There reasoning is it gives me time to check my finances and get a better job. Are they kidding me? I am a registered nurse and the salaries are pretty much fixed in this county. They say I dont qualify for a loan mod only fannie mae and freddie mac and unfortunately I have ginny mae. Who is ginny mae anyway.
I think wells fargo is trying to make money off of others losses. I dont know what to do guess nothing. Unless, anyone has some ideas for me. I would appreciate any help anyone can offer at this point.

[madresmustang]

Originally Posted by moonmaiden

This is the first time I have used this forum. I have little experience with it I have little experience with loans and I really am fed up with wells fargo. My basement collapsed 3 months after I bought my home. I fought the insurance company to pay for it they did. I hired a contractor who did awful work and halfway thru it I fired him. The bank wont give me the rest of the insurance monies to finsih the house. I have a lawyer trying to get it but it has been a year now and I owe him 5000 dollars now. That was the first loss. The bank has stolen my money I tried to repair what I could it cost thousands and still no money from the bank.
Then I lost my job I found another one but was out of work for 2 months. This job pays half what the last job did. I asked the bank for a moritorium and a loan mod. I got the moritorium I think but I think moritorium means mortiurium. They want partial payment for 3 months which in my case is 1260 per month and then they want 8000 dollars in november. Gee if I had that kind of money I would have been the loan. There reasoning is it gives me time to check my finances and get a better job. Are they kidding me? I am a registered nurse and the salaries are pretty much fixed in this county. They say I dont qualify for a loan mod only fannie mae and freddie mac and unfortunately I have ginny mae. Who is ginny mae anyway.
I think wells fargo is trying to make money off of others losses. I dont know what to do guess nothing. Unless, anyone has some ideas for me. I would appreciate any help anyone can offer at this point.

Have you checked with the title insurance? Did the basement have an inspection at the time of purchase? Was there any type of natural disaster? I would also contact your state Attorney Generals Office about WF keeping insurance funds as long as you can prove that the monies are used to fix that basement. You can always try your local news stations consumer reporter to.

Ginny Mae is a new one to me.

[moonmaiden]

Thank you for the advice My situation has been in litigation for a year now. YES it was a natural disaster wf stated that I am in a contractor dispute and therefore I cannot claim the money as if this contractor wins the suit the money is his however, his work was so bad I had to fire him halfway through the job. He doesnt stand a chance. He even threatened to kill my son he was horrible. I have pictures of his work and have had many inspections done also.
Its this bank its WF they are greedy ppl. I dont know who ginny mae is either however, she doesnt belong to the loan modificiation program apparently. I have had this house only 2 years not even. I have met with all kinds of disasters. They wont lower my rate from 7% because they say that I dont make enough money. Am I missing something here. I have to make more money to get a lower rate I hate this bank I just dont know what to do. Has anyone ever tried those third parties advertised on the net that do loan modifications for ppl who need lower rates? I have contacted them but they all want money and I am not sure that they can do any more than I can. Does anyone know if they are trustworthy and reliable. If so, which one might I try?

[jallen]

Right now I am so upset. We went through the loan mitigation trial period and all our payments were on time or before...we have never paid a mortage payment late...In the beginning of October I recieved the final loan modification payment package, it was 200.00 less than our original loan...that does not help us at all and is not in line with the trial period...off by several hundred dollars....

What I was promised is not what I received.... One Oct 5th , I spoke with Chris in the executive office, faxed him a new financial statement and he said the case would be re-opened...Had not heard from anyone and called the company (WF) today (executive office) so I could speak to Chris and get an update, was told by Jessica that now Sadie is taking care of the account and of course she is not available and will try to call me back today....as I said, Chris had handed off the file to Sadie and did not want or have the time to speak to me...Sadie could not speak to me because she was dealing with other clients...

Jessica also said we owe the full payment for Sept and Oct + Nov's payment in full...(which would be the difference between our original payment and the trial period for each month + the original loan payment for Nov) ...I am so upset and I just can't take much more of this...this is crapola....I paid each of the trial payments...and why now would I owe for Sept and Oct...and why was I denied access to a supervisor... I was told it "is not an option to speak to a supervisor".....You know what, I don't think I will ever deal with these people again...I think they are not on the up and up.....and right now I am really upset. It is time we hold them accountable for their actions...Let's see, let me wait until 7:00 pm for Sadie to call back...sorry but I won't be available. I have to be up at 3:00 am tomorrow for work....We are the consumers...we should have rights...we should have someone to turn to...this is crapola...totally crapola...I just bet they use the play back tape of my call for training purposes...I hope they do and they learn a few things...

[madresmustang]

Originally Posted by jallen

Right now I am so upset. We went through the loan mitigation trial period and all our payments were on time or before...we have never paid a mortage payment late...In the beginning of October I recieved the final loan modification payment package, it was 200.00 less than our original loan...that does not help us at all and is not in line with the trial period...off by several hundred dollars....

What I was promised is not what I received.... One Oct 5th , I spoke with Chris in the executive office, faxed him a new financial statement and he said the case would be re-opened...Had not heard from anyone and called the company (WF) today (executive office) so I could speak to Chris and get an update, was told by Jessica that now Sadie is taking care of the account and of course she is not available and will try to call me back today....as I said, Chris had handed off the file to Sadie and did not want or have the time to speak to me...Sadie could not speak to me because she was dealing with other clients...

Jessica also said we owe the full payment for Sept and Oct + Nov's payment in full...(which would be the difference between our original payment and the trial period for each month + the original loan payment for Nov) ...I am so upset and I just can't take much more of this...this is crapola....I paid each of the trial payments...and why now would I owe for Sept and Oct...and why was I denied access to a supervisor... I was told it "is not an option to speak to a supervisor".....You know what, I don't think I will ever deal with these people again...I think they are not on the up and up.....and right now I am really upset. It is time we hold them accountable for their actions...Let's see, let me wait until 7:00 pm for Sadie to call back...sorry but I won't be available. I have to be up at 3:00 am tomorrow for work....We are the consumers...we should have rights...we should have someone to turn to...this is crapola...totally crapola...I just bet they use the play back tape of my call for training purposes...I hope they do and they learn a few things...

I am sorry to hear that I am finally in the trial period process and have a saved email from Exec. Officer I worked with stating what the modification is supposed to be. But I'm afraid if after I finish trial period in Nov. I will get a lot more run around again.

This while WF announces the huge up tick in profit this morning and I know they have made some drastic changes to how the loan officers get paid. Keeping more open funds in the banks accts not paying it to the loan officers who have to do all this Stimulus loan mod. put out by the White House. That's what this program is that WF is using, first refuse payments if your behind by 1 payment, then force you to foreclosure, then start working with you that takes forever and no one to really answer questions. Finally we break our backs trying to work with them to not lose our homes and put forth good faith efforts.

I finally got stuff on trial period after 6 months of fighting, they said my mod. payment would most likely be the same as trial period payment. Which was 250 less than current mortgage. Now trial period ends on the last day of Dec. they say even though I've paid the trial period off early the period won't legally end until then. Then I gotta wait for paperwork and again no place to make Jan. payment to or even knowing how much it will be.

I'm doing things on the up and up from my part and now I know what to be prepared for. What I would do if I were you, I'd call there every hour until someone in the Exec. office or the Mitigation office talks to you. Document every call, every person who answers, keep your cool, treat them with utmost respect. Your now going to Arm yourself with more ammunition to show others what's going on. I have asked is there no way this is going to become a class action law suit.