Wells Fargo HAMP Program

[kac4624]

Hello.

A few days ago I made my third payment to Wells Fargo under the HAMP program and was told to wait a few weeks and my loan modification paperwork should arrive. Today I received a call from Wells Fargo and now they want current pay stubs, an updated hardship letter, and an updated list of expenses. The only problem is that my salary has decreased from $40,000 to $30,000 since I started on the three payment plan.

Will this possibly be a cause for the modification to be rejected? I am getting worried as I was under the impression that I was just about done with the process. I have yet to send the documents to Wells Fargo, but they suggested that I provide them as soon as possible.

Thanks

[Liz Medrano]

You have already proved that you can make the payments. I have seen threads that say if your circumstance has changed by mor than 25% they must re-evaluate. I too just finished my three trial payments with WF and they also just called us and requested two recent check stubs. We are in limbo; I just want this done. I don't sleep.....

[kac4624]

I hope that proving I am able to make the payments is enough as my salary reduction happened just as I started the program. The stress is quite great it is sometimes difficult to think straight when considering the possibility of losing one's house.

Any further advice that anyone has would be greatly appreciated. Especially in regards to the ratios I need to maintain as far as expenses to income are concerned.

Also, I have contacted NACA in the past, but that communication has essentially ceased since I started with the HAMP program. I tried contacting the loan counselor that I worked with previously, but I think she may no longer be with the organization. Does anyone have any advice about whether or not to try to continue with NACA? They seem quite busy and I am worried that getting a response from them may not be timely enough.

[TNT101]

Originally Posted by Liz Medrano

You have already proved that you can make the payments. I have seen threads that say if your circumstance has changed by mor than 25% they must re-evaluate. I too just finished my three trial payments with WF and they also just called us and requested two recent check stubs. We are in limbo; I just want this done. I don't sleep.....

liz

I read that if final step is to have new paystubs to look over since you are now 60 days old on the last paystubs. They want to be sure your circumstances did not change by more than 25% to be sure you can make the payments going forward. + or - by more than 25% would indicate your circumstances either got much worse or much better than the loan was based on. Just last minute checking to make sure the final loan should go through.

sounds like you may have only one or two more things to compete this. Good luck.

TNT101

[Murray12]

Is your original exact income $40,000? and your income now is exactly $30,000. The way that I read the regulation below, you would still qualify if those numbers are correct.

25% of $40,000 = $10,000
$40,000 - $10,000= $30,000.

It seems to me that you are at exactly 25% and the reg below says MORE than 25%. Check my numbers and it is the way that I interpret the reg below. I would call HOPE NOW.

If the verified income evidenced by the borrower’s documentation exceeds the initial income information used by the servicer to solicit or place the borrower in the trial period Announcement 09-05R Page 8 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.

[kac4624]

That is correct. My income is exactly 25% less than when I started with the HAMP program. When I prepare the new budget to present to Wells Fargo I wonder if I need to reduce expenses by the same amount?

I will try contacting Hope Now later today and will post the any information I receive.

[kac4624]

I contacted Hope Now and was put through to someone right away. I had two phone conversations with a counselor and she helped me to put together a budget and I submitted it to Wells Fargo along with the rest of the requested information. Hopefully my financials will be approved and my loan will be modified otherwise it looks like I may have to start the three month trial period all over again.

Hope Now has been very helpful as of lately. I worked with NACA in the past, but I can't get anyone to return a call or an email.

[Murray12]

I agree Hope Now is helpful and helping set up a budget and helping you submit your info. I just think perhaps NACA has more clout in getting modifications approved.

I have used Hope Now, but have only read about NACA and have not used them as of yet.

[kac4624]

Just an FYI.

I spoke with Wells Fargo earlier today and they are in receipt of my documents. They did tell me though to continue making the modified payments on the first of the month. The two other times I recently contacted them this little detail was not mentioned and I was told to not make any payments unless I was contacted and told to do so.

[kac4624]

This was kind of odd. I missed a call from Wells Fargo eariler this morning and returned it a few hours later. When I got a hold of someone I went though the standard identification verification and was then told that Wells Fargo appreciated all of the documents that I provided back in May along with the three payments that were made. The woman that I spoke to then said it was a courtesy call then she hung up before I could ask any questions.

[kac4624]

I called Wells Fargo yesterday and was informed that my modification was in the "settlement" stage and that now I just need to wait for the US Treasury to send me the final documents. The terms are 2% interest for the first five years then the rate gradually increases up to 4.75% over the next five years and is fixed at that rate for the term of the loan.

Hearing this was of course a big relief, but I wonder if it is too soon to celebrate.

[tlbaker74]

We are to make our first payment under the 3 month trial period through WF. My husband asked the lady in the LM dept about the HAMP program and she said she could not speak about it. We are told to resubmit out financial info after the 3rd payment and they will review for loan mod. There is a sale date on our home for October 23, but was told that this will be stopped after the first payment. But what if the mod is denied? Do they throw us right out of our home in the dead of winter?

[VegasLove]

Dear kac4624,

Please tell us if you get a written "loan mod" offer. Seems a lot are going through the trial period / waiting. But I've not read or heard of any actual offers yet. Keep us posted, PLEASE!

[kac4624]

I spoke with Wells Fargo yesterday and was told that the interest rate and terms of the modification may be different that what I was initially told. However, I was informed that everything is a go and I am essentially just waiting on the documents. I am not sure what to believe at this point as every time that I call in I am told something different. I will keep everyone posted as things progress.

[kac4624]

I still have not received any documents in regards to the modification. I called earlier today and was told that the modification was under "review" and that it progressed to this status on the 12th of October and that from this point it can take anywhere from 30-60 days for a decision to be made. I completed the trial program in August and have made additional payments since then.

I have tried contacting NACA though emails and phone calls, but I never hear anything back. My counselor at Hope Now is trying to assure me that if there was a problem with my file it would have been kicked out by now and that Wells Fargo is just overwhelmed with modification requests and it is taking a long time. I am not quite sure what to think about all of this.

I tried calling the Executive Office a while back and the woman I spoke to was quite rude and informed me that she could not help me with anything and that I need to contact Loss Mitigation.

Does anybody have any feedback or suggestions about who I may want to contact to speed things up or to get a straight answer in general?

[waitingpatiently]

kac4624

Wow, looks like we are in the same boat...did our 3 payments and waiting for a final modificaiton...have you heard anything as of yet? I'm so sick of this process.

[kac4624]

I am still waiting for final approval. Earlier this week Wells Fargo requested a copy of my homeowners insurance policy and I had to verbally agree to an insurance escrow. This atleast tells me that some work is being done on my file. When I called to confirm receipt of my policy I was told that a decision should be made within two weeks and if not my file would be escalated. We will see I guess.

[kac4624]

Wells Fargo called today and informed me that I have been approved and that my modification agreement should arrive by Monday at the latest. I dont know the terms other than the interest rate is 2%. This is a big relief as I have been worrying about losing my house for months now. When I get the documents I will fill everyone in on the terms of the modification.

[yomann]

Originally Posted by kac4624

.............. I just need to wait for the US Treasury to send me the final documents. The terms are 2% interest for the first five years then the rate gradually increases up to 4.75% over the next five years and is fixed at that rate for the term of the loan. ...........

Do the final loan mod documents come from the US Treasury, and not Wells Fargo ?
Sorry; I am new at this and did not know who sends the final documents; always assumed they came from the Bank.

[davephx]

Wells sends the documents (all servicers do)

Than they have to submit to the investor which is part of the long delay. At least this is what Citi told me with Fannie as investor. But the docs come from servicer. Sort of big pretty fancy package from Citi for the initial Trial Agreement...that we don't need any more....I got after 3rd trial... but still long time for the notorized required final docs

[nbtapia1]

Originally Posted by kac4624

This was kind of odd. I missed a call from Wells Fargo eariler this morning and returned it a few hours later. When I got a hold of someone I went though the standard identification verification and was then told that Wells Fargo appreciated all of the documents that I provided back in May along with the three payments that were made. The woman that I spoke to then said it was a courtesy call then she hung up before I could ask any questions.

I am in trial period ( 2nd payment) and i was thinking finally I'll get modification, but now I'm not sure... after 3rd payment should I just continue with payments until they finally contact me with approval or denied modification or should I stop sending payment after the 3rd one... I don't know what to do... please help

[kac4624]

It is recommended that you continue to make the trial period payments. I skipped a month after I finished the trial then made a payment the following month. I am not sure what happens if you dont make any additonal payments. After you finish with your trial I think it will be at least 60 days until you receive a decision as to whether or not your loan modification request is approved.

[kac4624]

Just got my modification agreement:

Years Interest
1-5 2%
6 3%
7 4%
8-40 5%

Originally my loan was amortized over a 30 year period. Now it is stretched over a 40 year period. For years 1-5 my P&I + escrow payment is about 35% lower than was it was initially. For years 1-5 there is a Borrower Incentive of 83.88 per month which is used to reduce the outstanding principal balance. This is in effect as long as my payments dont become 90+ days past due. There is a Deferral of Principal of about $25,000. P&I is not charged on this amount and it becomes due in 40 years or when I sell the house. No past due principal was forgiven. First payment due 12/01/09.

Overall I am pretty happy about this. I have been quite worried and this is a huge relief.

If anyone has any questions please feel free to ask.

[MyHAMP]

Originally Posted by kac4624

Just got my modification agreement:

Years Interest
1-5 2%
6 3%
7 4%
8-40 5%

Originally my loan was amortized over a 30 year period. Now it is stretched over a 40 year period. For years 1-5 my P&I + escrow payment is about 35% lower than was it was initially. For years 1-5 there is a Borrower Incentive of 83.88 per month which is used to reduce the outstanding principal balance. This is in effect as long as my payments dont become 90+ days past due. There is a Deferral of Principal of about $25,000. P&I is not charged on this amount and it becomes due in 40 years or when I sell the house. No past due principal was forgiven. First payment due 12/01/09.

Overall I am pretty happy about this. I have been quite worried and this is a huge relief.

If anyone has any questions please feel free to ask.

And another one! Congratulations!

It only takes awfully long but obviously, not every application is denied. I feel they are starting to get things going....finally!

Question: Trial payment higher or lower than permanent mod and by what %-ual margin? Thanks!

[kac4624]

My trial payment was $1,018 my new P&I payment (years 1-5) with escrows is $775. This will make things a good bit easier for me.