Wells Fargo Mod process started

[angelino]

Current home value is 507k.
First IO is 565k
Second IO is 155k

I made a phone call a week ago and talk to WF. Both CSRs were very professional and asked me to fax over some info attn. to loss mitigation.

Today, I sent them the hardship letter, income/expense stats and paystubs.

Will follow up in 2 business days, as suggested by WF, to confirm the receipt of the docs.

Meanwhile, I have a question for experts.

In my income/expense statement, I am showing the deficit of almost $1000 every month compared to our net income. WF asked for expenses vs. net income only. I am worried if this would hurt me, having this deficit.

Please advise. Will/might they reject my app? I am current on all my bills.

[angelino]

This applies only to my first loan. The investor is BofA.

[B Stevens]

I believe a large part of what affects the decision is what is causing the $1000 deficit. Read through this link and determine if it is front end DTI or back end DTI
http://www.treas.gov/press/releases/...guidelines.pdf

[angelino]

Thanks for the pointer B Stevens.

My Front-end DTI with ITIA is 33%. I wonder how will they calculate with PITIA since my loan is IO. AT my current loan terms, PITIA might bring up my current Front-end DTI to 0.36.

Back-end DTI will not exceed 0.55. So, I am hopeful.

[angelino]

It has been 1 week since WF got my papers to apply for loan mod. Called Loss Mit today and CSR said it will take 30-45 days to assign a file to Negotiator within Wells Fargo. The way I perceive it "The file is going to sit in some cabinet for 45 days before anyone touches it". Is this what others are experiencing? How long might it take after Negotiator picks it up?

[ugh_2009]

Hi angelino, it's hard to know how long it's going to take, they might have things more streamlined now or they might be even more backlogged.

We put our request on 3/17 and the negotiator was assigned on 4/18. We are still waiting... BPO was only requested about a week ago.

Unfortunately if your Frond-end DTI is 33% your payment might not go down much under the Obama plan. They will lower it to 31% and will turn it into a fully amortized loan - i.e. you will build equity faster.. Maybe try to modify your second, you might have better success there. Or maybe wf can offer you something else than the Obama plan?

ugh.

[angelino]

Thanks UGH_2009 for the update.

I did some math and if they modify my loan under Obama plan, my payment will reduce by approx. $300, but my new loan would be amortized as you said and I will be paying some principal down with every payment. Right now, I am funneling them lot of money in interest only.

I'd be happy if they give me Obama plan.

[dcguy]

Angelino -

Actually I have applied for loan mod with Wells Fargo 2-3 months back and my monthly deficit was around 2000$. I was told that our monthly deficit is tooooooo high to be eligible for mod .. and looks like (not sure), they will only help ppl with no deficit (thats a pure BS) ..... so they asked me to resend all my paperwork after our refined monthly expenses .... and the whole process will start again which might take 45-90 days ..... it just frustrates me ... I believe these guys donot want to help ... its just on the paper but in reality nobidy is willing to help .....

I would suggest you to work on your expenese and send them asap before the negotiator gets to it and rejects it .....

Thanks

[angelino]

Thanks dcguy.

I do have my share of anxiety for the deficit. Will do something about that. Was your Back-End DTI above 55%? Did Negotiator mentioned to you anything about that?

[dcguy]

Angelino -

No they didn't mention anything abt my DTI ... but since I know my monthly expenses ,,, I calculated it and it came around 85%+ ... which is very high to be even remotely considered for loan mod.

Thanks,