ASC/Wells Fargo "NEW" SUBORDINATION requirements ALERT!

[Monserrat]

I completed my TPP on time and WF posted in their Website https://www.wellsfargo.com/homeassis...e/modification that my permanent had been approved. Yesterday I found out that they want a subordination agreement from my second mortgage. I originally process an 80/20 .

1. First can I sue them for posting an stating that my modification had been approved stating that only docs would be sent for my signing and then turned around and asked for another roadblock requirement ( Subordination Agreement from 2^nd mortgage?

2. Is a Subordination Agreement legally required on a Modification for a Fredy Mac loan in Massachusetts?. What type of recording or lien alteration is needed for them to require this doc. normally this is done for new loans, refis.

3. My 2nd mortgager refuses to give me the letter claiming that because my loan was discharge in my chapter 7 they cannot give any written information about this loan. Is this true? How can I force them to provide this agreement?
4. Can I sue WF for misleading customers with 2 mortgages or more into TPP and then pull this major requirement at the end, well knowing that the other parties do no readily and quickly provide this doc?
Thank you very much for your comments!

[TomEason]

Monserrat

Thanks for your post and welcome to Loansafe.

It would seem to me no subordination is needed for the reasons you've stated. I've never understood why some lenders need this and others don't.

FYI, your junior lender doesn't subordinate the note and debt, which were discharged in your BK. They'd be subordinating the lien, which is still of record.

Yes, you can sue anybody you want to if you're willing to spend the money on attorney fees and court costs. Your question might better be phrased "do I have a cause of action with merit?" And the answer is "who knows?"

[Monserrat]

Dear Friends in Battle,

As many of you know I have been trying to get a modification from ASC?/WF for over a 1 1/2 year now. I completed my trial payment period on July 1st, only to find out that a "Subordination Agreement" from my second mortgage is a MUST now. Well Since July 1st I have been back and forth trying to find out what is happening with this Subordination Agreement, whether I generate this according to the offered terms or if instead ASC/WF generates it... ? Anyway, last week I called the office of Executive Complaints and they say that I should allow 3 business days for the business unit to respond. I allowed, Thurs, Friday of last week and all of this week. I called today, just to find out that THEIR BUSINESS OFFICE is generating ALL SUBORDINATIONS and they are backlogged because of this NEW PROCESS!
I AM CURRENTLY IN STAND BY UNTIL GOD KNOWS WHEN... I am however, writing a letter of complaint to WF about this.
1. PEOPLE WITH TRIAL MODIFICATION IN PROCESS, be ready and prepared to ask your second lender to agree to subordinate their lien.
2. Take into consideration whether or not it is best not to do the trial payments if there is no possibility of getting a subordination from 2dn lender.
Dear Friends in Battle,

As many of you know I have been trying to get a modification from ASC?/WF for over a 1 1/2 year now. I completed my trial payment period on July 1st, only to find out that a "Subordination Agreement" from my second mortgage is a MUST now. Well Since July 1st I have been back and forth trying to find out what is happening with this Subordination Agreement, whether I generate this according to the offered terms or if instead ASC/WF generates it... ? Anyway, last week I called the office of Executive Complaints and they say that I should allow 3 business days for the business unit to respond. I allowed, Thurs, Friday of last week and all of this week. I called today, just to find out that THEIR BUSINESS OFFICE is generating ALL SUBORDINATIONS and they are backlogged because of this NEW PROCESS!
I AM CURRENTLY IN STAND BY UNTIL GOD KNOWS WHEN... I am however, writing a letter of complaint to WF about this. Does anyone have the actaul contact for the "business office" whereever they may handle title and such issues at W/F?

1. PEOPLE WITH TRIAL MODIFICATION IN PROCESS, be ready and prepared to ask your second lender to agree to subordinate their lien.
2. Take into consideration whether or not it is best not to do the trial payments if there is no possibility of getting a subordination from 2dn lender.
!

[illstay]

Monserrat, what happened with this for you? I may be facing a similar situation with Bank of American/Fannie as investor. My 2nd is Green Tree with BOA as investor.

[danielwf]

Hello Monserrat

My case it is like same than yours the only diferents is. I am in trial payment plan (2mp) with the Heloc too and i have a sale date if my home in 2 weeks.

Any updated on yours case?


Thanks in advanced

Dani

[Monserrat]

HI Everybody!

After trying for almost 2 years to get a modification from Well Fargo /ASC, I will be moving along to a Short Sale. My second mortgage did not subordiante and thus my 1st is dead on the water. To all of you who have a second expecting a modification from the first, make sure you don't enter a trial payment payment expecting positive results if your second is behind or without talking to them. I am looking for paperwork form on how to prepare my short sale.

[DaniNJ]

Thanks, everyone -- I am facing this issue now, and very curious to see if anyone has had success in getting second to resubordinate?

I am in NJ trying to get a Fannie Mae modification. First is being serviced by Seterus -- 2nd is Greentree.

I definitely won't begin making trial payments unless I determine Greentree will agree to resubordinate (I am doubtful, since Greentree has so far derailed my short sale and DIL attempts) OR unless I can get some reliable assurance that Fannie Mae does not require this doc.

Would love to hear updates from anyone on this thread. Wishing everyone luck!

[DaniNJ]

Hi everyone,

Just wanted to post an update. Our Seterus modification went through, with no issues from Greentree re subordination. I guess it was not a requirement.

I hope the others on this thread will be as lucky! Finally feel like the nightmare is over.

[Happy HAMPER]

We were just about at the end of our Modification with ASC/WELLS when they said we had to get Saxon to subordinate the 2nd. It was a nightmare to get, but we finally did. The reason WF told us was that, in our county, even if you do a modification, a new lien has to be reported. So, when they released their exisiting lien to re-record the lien, it would allow the 2nd lien holder to automatically assume 1st position and put WF in 2nd, and THAT WASN'T GONNA HAPPEN! It took several frantic emails, calls, faxes, etc and I finally got it done just in time. Had to pay $300 to do it! That was almost 2 years ago and all is well.

[TomEason]

We were just about at the end of our Modification with ASC/WELLS when they said we had to get Saxon to subordinate the 2nd. It was a nightmare to get, but we finally did. The reason WF told us was that, in our county, even if you do a modification, a new lien has to be reported. So, when they released their exisiting lien to re-record the lien, it would allow the 2nd lien holder to automatically assume 1st position and put WF in 2nd, and THAT WASN'T GONNA HAPPEN! It took several frantic emails, calls, faxes, etc and I finally got it done just in time. Had to pay $300 to do it! That was almost 2 years ago and all is well.

Thanks for your post. WF is the only lender I know of that requires a 2nd lender to subordinate as a condition of modifying a WF 1st loan.

[ianbain]

Thanks for your post. WF is the only lender I know of that requires a 2nd lender to subordinate as a condition of modifying a WF 1st loan.

You can sue to have the 2nd subordinated in MI

[gatorauto]

Wells (ASC) is doing the same with me. HAMP trial approved back in August 2011. Paid trial on time and continued to do so. Come Spring 2012, needed a subordination for the second (Capital City Bank) Capital City is refusing and Wells Fargo is saying "Oh Well, we have no other programs if you dont get the subordination". Now, two years later, I am still making trial payment and trying to get an answer. Current on the 2nd, only have three years left with them and they are in a great position after the remod. I cant get a straight answer from anyone. I think they would be fine with a foreclosure. If I file BK, the 2nd gets stripped. They have no reason to not subordinate.....