Wells Fargo Modification Trial Period

[bnbzub]

Hello I just received a package offering me a 3 month trial payment for my Wells Fargo mortgage. If I make the 3 payments I guess they will modify my loan to the new payment. I was wondering if after the 3 month trial period will I have to resubmit income paystubs again, or any other paperwork? Or will the paperwork I send in with the original 3 month offer be all I need to send in? Has anyone else gotten through the 3 month trial period recently to answer what else Wells asks for after the trial period? Thanks for any help

[Evan Bedard]

Hi bnbzub,


After the trial is completed they may make that payment your new modified payment right away. But I have seen people who have had to supply some updated pay stubs before the modification is rendered to make sure that your financial situation has not changed from when the trial period began. It is different case to case...

[jtimms]

What are they doing if during the trial period your financial situation changes?

[Moe Bedard]

Upon receipt of the Trial Period Plan from the borrower, the servicer must confirm that the borrower meets the underwriting and eligibility criteria. Once the servicer makes this determination and has received good funds for the first month’s trial payment, the servicer should sign and immediately return an executed copy of the Trial Period Plan to the borrower. Payments made by the borrower under the terms of the Trial Period Plan will count toward successful completion irrespective of the date of the executed copy of the Trial Period Plan.

If the servicer determines that the borrower does not meet the underwriting and eligibility standards of the HAMP after the borrower has submitted a signed Trial Period Plan to the servicer, the servicer should promptly communicate that determination to the borrower in writing and consider the borrower for another foreclosure prevention alternative.

If the verified income evidenced by the borrower’s documentation exceeds the initial income information used by the servicer to place the borrower in the trial period by more than 25 percent, the borrower must be reevaluated based on the program eligibility and underwriting requirements. If this reevaluation determines that the borrower is still eligible, new documents must be prepared and the borrower must restart the trial period.

If the verified income evidenced by the borrower’s documentation is less than the initial income information used by the servicer to place the borrower in the trial period, or if the verified income exceeds the initial income information by 25 percent or less, and the borrower is still eligible, then the trial period will not restart and the trial period payments will not change; provided, that verified income will be used to calculate the monthly mortgage payment under the Agreement. (If, based on verified income the result of the NPV test is “negative” for modification, the servicer is not obligated to perform the modification.)

However, if the servicer determines the borrower is not eligible for the HAMP based on verified income, the servicer must notify the borrower of that determination and that any trial period payments made by the borrower will be applied to the mortgage loan in accordance with the borrower’s current loan documents.

[jtimms]

From the time that they sent me the packet I have lost some more income. When I returned the paperwork I showed everything I could and then some. They have called and asked for a current profit/loss info cause the one I gave them is from 08 taxes. But the trial period payments are only $150 less than what I am paying already. Which won't help much. So I don't understand how they came up with that payment before they recieved my info. Everything was verbal so I don't know what numbers they worked with! To my understanding 31% would be a $700 drop in my payment. Anyone?

[Moe Bedard]

Servicers may use recent verbal financial information obtained from the borrower and any co-borrower 90 days or less from the date the servicer is determining HAMP eligibility to assess the borrower’s eligibility. The servicer may rely on this information to prepare and send to the borrower a solicitation for the HAMP and an offer of a Trial Period Plan. When the borrower returns the Trial Period Plan and related documents, the servicer must review them to verify the borrower’s financial information and eligibility – except that documentation of income may not be more than 90 days old as of the determination of eligibility.

[jtimms]

So the payment could still change depending on the income documentation?

[Moe Bedard]

The reference to the documentation of the income and what will happen with that during the Trial Plan was already answered above in detail from the guidelines that the servicer is following.

[Hopefull2009]

Everything was verbal so I don't know what numbers they worked with!

Did they ask you on the phone what your gross monthly income was? They probably based it on that answer.

[jtimms]

I originally started this process a year ago and our monthly income was quite a bit more. I have updated things along the way but I don't know which numbers they are going off of for this trial payment. I just hope there is room for change or it won't work for us! A $150 a month doesn't make a difference!

[deanna]

*** and all,

I have current on the trial period for the HAMP program - I have 2 payments with them already - and when I called them in regarding the final paperwork needs to send back to me - they have informed me that i will need to make the third payment - then the schedule of rate will take into effects and we will receive the final mod...

It is somehow conflicting with what you have stated - I have followed up with them and they just have to tell me - that i will have to wait for the last payment ... any advise what do I need to go from here

[Moe Bedard]

Deanna,

All of the information that I am stating is directly from the guidelines given to the servicers on the non GSE backed loans (which is not FannieMae/FreddieMac) and can be found here................

https://www.hmpadmin.com/portal/docs/sd0901.pdf


The guidelines give them until the second payment is made................

In step two, servicers must calculate the terms of the modification using verified income, taking into consideration amounts to be capitalized during the trial period. Servicers are encouraged to wait to send the Agreement to the borrower for execution until after receipt of the second to the last payment under the trial period. Note: the borrower is not required to have the Agreement notarized.

[mrs_vanity]

Received my agreement yesterday via snail mail.

first payment is due 8/1, 9/1, 10/1.
Payment is the same amount that we are already paying from before. They said if we pay all of this on time, there is a chance that our loan will be modified. Are they setting us up to fail? Are payments for the forbearance usually lowered? They said they are doing this so we can catch up on the backdue's. Please let me know if you had this situation before. It's been a loooooong 7 months. We haven't made a payment since January. Are hoping for some type of break so we can get back on track and move on from this situation that we are in. I tried to express to them if we couldnt afford to make this payment before, what makes them think its any different now. We can do the 3months with family assistance, but would love to know what happens at the end of the tunnel. Please give me some hope!

[ultimate4799]

Hi Mrs Vanity,
Can you help share the contact info for people at Wells you deal with the HAMP program? I recently have my loan mod denied and I keep calling Wells but I feel like most of the reps I tlked with don't have any idea or are not yet educated on this HAMP program.. I appreciate it and God Bless!

[mrs_vanity]

the number that I have is 866-204-3574. The other number that i have called is the lost mitigation for arm loans, 866-662-4866

[dcguy]

mrs_vanity -

we are also offered the same plan. we are still debating whether to take this plan or not since we can still afford mortgage payments for nest 3-4 months. We are more inclined towards rejecting this and ask WF to be still considered for loan-mod.

we have an excellent credit history and we definetly donot want to ruin that as we still can afford our payments at this time. And one more thing is if we my husband gets a job during that forbearance period then I donot think we will be eligible for loan-mod. Then for nothing we have ruined for credit score.

Will update you along.

Thanks.

[phi650]

Hi there,


I am new to these forums, so I apologize if this topic has already been discussed. I am trying to assess exactly what type of negative impact my credit score would take for successfully participating in the Obama HAMP modification program through my loan investor & servicer (Wells Fargo).

We bought our house in the height of the market in Los Angeles county (May 2006) and have a hefty payment on a jumbo loan that has been hard to keep up with. We have never been late on any of these payments. My wife was home raising our kids and has yet to be able to get hired back with her school district (due to hiring freeze).

My wife and I have great credit scores (~775), and was told by the Wells Fargo Loss Mitigation Dept that during the 3-month trial period (before the permanent modification takes place), we would be reported to the credit bureaus as "delinquent - partial payment received." If after the 3 payments are received on-time, we would most likely be accepted into a permanent modification (at which point, no more negative credit score activity would be reported to the bureaus).


That being said, do you have any idea just how much of a numeric, negative impact we would see in our credit score for participating in the Obama HAMP program? Any idea how permanent such negative activity would be (i.e. how long it would take to improve back to the original score or close to it)?

Would I be better off fighting for a loan modification through Wells Fargo outside of HAMP? Do you think negative credit score would also be an issue for such non-HAMP modifications?


Thanks for your help,
TMS

[newbaby08]

pls help!
we had completed the trial period and have been granted a perm mod .. rec'd paperwork on 6/15 sent them back the next day and 1st payment due 8/1. Called today to make payment via phone and was told after all this the mod was REJECTED, AFTER WE SIGNED AND SENT BACK due to some form of interest error>>> have or has anyone heard of this. Now they are re-doing the form and no payment due at this time.

once it is signed do they have the right to reject it> they sent it to us in the first place.


any suggestions.
now must wait until the new one arrives.

[phi650]

Originally Posted by Evan Bedard

Hi bnbzub,


After the trial is completed they may make that payment your new modified payment right away. But I have seen people who have had to supply some updated pay stubs before the modification is rendered to make sure that your financial situation has not changed from when the trial period began. It is different case to case...

--------

Hi folks,

I am new to these forums, so I apologize if this topic has already been discussed. I am trying to assess exactly what type of negative impact my credit score would take for successfully participating in the Obama HAMP modification program through my loan investor & servicer (Wells Fargo).

We bought our house in the height of the market in Los Angeles county (May 2006) and have a hefty payment on a jumbo loan that has been hard to keep up with. We have never been late on any of these payments. My wife was home raising our kids and has yet to be able to get hired back with her school district (due to hiring freeze).

My wife and I have great credit scores (~775), and was told by the Wells Fargo Loss Mitigation Dept that during the 3-month trial period (before the permanent modification takes place), we would be reported to the credit bureaus as "delinquent - partial payment received." If after the 3 payments are received on-time, we would most likely be accepted into a permanent modification (at which point, no more negative credit score activity would be reported to the bureaus).


That being said, do you have any idea just how much of a numeric, negative impact we would see in our credit score for participating in the Obama HAMP program? Any idea how permanent such negative activity would be (i.e. how long it would take to improve back to the original score or close to it)?

Would I be better off fighting for a loan modification through Wells Fargo outside of HAMP? Do you think negative credit score would also be an issue for such non-HAMP modifications?

I received some paperwork from Wells Fargo asking for more detailed information about my eligibility for HAMP - but want to make sure of the questions above first.

Thanks for your help,
TMS

[orchard]

Moe, I've read this entire string, but I'm not clear, please excuse me. it sounds like once you've entered the trial period, there is one additional submission of documents after the second payment? and then if you make the third payment it's finalized? I'm with WF and just made my first payment. Thanks much for any clarification you can provide.

[cahomeowner]

Originally Posted by bnbzub

Hello I just received a package offering me a 3 month trial payment for my Wells Fargo mortgage. If I make the 3 payments I guess they will modify my loan to the new payment. I was wondering if after the 3 month trial period will I have to resubmit income paystubs again, or any other paperwork? Or will the paperwork I send in with the original 3 month offer be all I need to send in? Has anyone else gotten through the 3 month trial period recently to answer what else Wells asks for after the trial period? Thanks for any help

I was on that trial period starting 12/8 ending in 2/09. I was told after the trial period I would be considered for loan modification.

I have been in limbo for over 9 months with no payments made because I could not get a loan mod approved. each time they would say I was in review and then someone would just close the file subsequently I had to keep filing new applications......

I would get all your financials together and start applying for your loan mod as soon as you complete the trial period. you will want to work with wells fargo executive team. read the discussion forum here to see what's working for others.

[Jakeman]

Originally Posted by Evan Bedard

Hi bnbzub,


After the trial is completed they may make that payment your new modified payment right away. But I have seen people who have had to supply some updated pay stubs before the modification is rendered to make sure that your financial situation has not changed from when the trial period began. It is different case to case...

Evan,

I've heard many different versions of what Wells Fargo uses when determing whether one qualifites for a modification under HAMP. Do you know the real story? What are the big factors when determinng this?

Thanks.