Wells Fargo loan modification allowable during Chapter 13 Bankruptcy?

[Meagan G]

Good afternoon,

Going to try to keep this short, here's my story: Applied twice for loan modifications with Wells Fargo over the last two years. Last time I was "denied" was Feb, 2010... the reason given in my denial letter was simply, "Does not qualify for HAMP". I had called them a few times prior to receiving an official denial (after calling weekly for a year as advised my them & told "file's still under review, call back next week") and found that they never had the correct amounts for income & expenses, etc.

I need to do something w/ my current loan and considering re-applying. Current loan was a 3 yr adjustable (1st adjustment was Mar '09) the payment is totally affordable NOW. I am not asking them for a forebarance or principal reduction, just simply to convert from an ARM to 30 yr fixed so I don't have to guess what my mortgage payment will be the following year. We are currently in active 13 Bankruptcy, filed March 2009. We have never been late or missed a mortgage payment to Wells Fargo. We simply want to convert to a fixed loan, that simple.

Anyone have any advise as to how I can get this accomplished? Will Wells modify my loan while in Chapter 13 BK (with court approval of course)? Should I get some kind of approval from our Trustee first (If I even can) and provide that upfront with my modification request? Per my figures, we qualify for HAMP as our Mortgage, Taxes & Insurance exceed 31% of our income.

Any help & advise, or people I should be contacting would be greatly appreciated!

Thank you in advance,

Meagan

[yomann]

Filing BK does not appreciably change the loan mod process - all that happens is your file gets transferred from loss mitigation to the BK dept. at the bank. That may introduce some delay. OTOH, I assume the BK dept is not as backlogged as the regular loss mitigation dept.
See my signature for our timeline. Still waiting on an affordable mod.

[Meagan G]

Thanks for the reply. I just contacted Wells Executive team and after spending time on the phone w/ a rep who actually spent time reviewing the notes in my file, found out that the reason I was denied was because of my "financial position" (previously they told me that it was because of the active ch 13). They didn't enter in our income & expenses accurately and show a $200 deficiet rather than $100 residual income. When they denied me in Feb I brought this error to their attention & asked that they correct their error and re-review my file. Their answer was that they had already closed my file and issued a denial letter. SO... I am going to re-apply now. Any tips you can share on how to put it together would be greatly appreciated.

Thanks again!

[yomann]

One can never be sure how the reps look at budgets
What I have learned is the negotiator will look at your credit report, to verify the loans you are paying on.
In addition, your tax returns to verify income.
Have also been told by my OOP rep (WFB), they want to see a monthly surplus of $250.
So, I adjusted my budget to meet that guideline.

[Meagan G]

Were you going to not be considered for the mod due to a surplus other than $250 and you were allowed to adjust it?
Sorry but what is an OOP rep? New to all of this! Thanks for the tips, appreciate it.

[yomann]

Were you going to not be considered for the mod due to a surplus other than $250 and you were allowed to adjust it?
Sorry but what is an OOP rep? New to all of this! Thanks for the tips, appreciate it.

The OOP stands for Office Of the President. Most banks have one, and if you are not getting anywhere within a reasonable timeframe, you can escalate your file to the OOP.
Over the course of a year I have updated my files including budget about 5 times; each time a bit different.
Based on the OOP rep's input, my last budget shows a $250/mth. surplus.
If I buy extra beer and cigs on a given month, there will be no surplus
It all a tiring game ...... but we must play it

[soccermom]

Yomann-I need to pick your brain! Did you get the sfa agreement offer while in your bk? We have been denied for 1 1/2 yrs, we are 12 mnths behind & have a sale date but are in review for a loan mod. We are considering doing a ch13 to stop the sale, but at that point we are still stuck with our first awful loan!!! Is it likely to get mod while in a bk??

[spootie]

Yomann-I need to pick your brain! Did you get the sfa agreement offer while in your bk? We have been denied for 1 1/2 yrs, we are 12 mnths behind & have a sale date but are in review for a loan mod. We are considering doing a ch13 to stop the sale, but at that point we are still stuck with our first awful loan!!! Is it likely to get mod while in a bk??

Hello, I Currently have a superior court case for fraud and a chapter 13. I Was forced into filing chapter 13 to stop the sale of my home as WELLS FARGO was given a extension on a demmur but the sale date was not postponed. I have yet to be given a modification, my loan is not in the chapter 13 just the $800 credit card and the attorney for chapter 13 fees which have been paid off. I still have to pay the trustee $300 a month for nothing. I have been paying WAchovia $2953.41 every month for over a year and even now the modification has not been confirmed or denied but at the end of 5 years they get to deny it keep the over 300k I will have paid the banks and get to keep my home! SWEET deal for the banks. I am going to keep fighting till the end what ever comes of it. I could afford a modification (but Wells Fargo keeps turning me down)that is what I have been paying but every month my principal goes up $474.00 a month because I am on a pick a pay loan and it is just as shitty as it comes. SO In answer to your question only the rich and lucky get a modification by WELLS FARGO if you a struggeling homeowner forget it they want you on the streets!