Denied Loan Modification by Wells Fargo

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keepingmyhouse

LoanSafe Member
Aug 27, 2013
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I was approved for the Wells Fargo Unemployment program last September when I lost my job. This September, I was supposed to pay my last payment on that program. I have been working with my home preservation specialist for the last couple of months in an attempt to get approved for a permanent home loan modification. I received a call from the home preservation specialist yesterday telling me that my income isn't high enough but when I looked at their calculations, they took 3 months of earned income and averaged it over a 6 month time period. That made no sense to me. In addition, when I looked at my account online, they show that I am 299 days past due on my payments because they subtracted my payments made while on the unemployment program from the regular monthly payments and are now expecting to get that whole sum paid at once, it is approximately $40,000. When I began the program, I was assured by the rep that they would work with me at the end of the term to find a reasonable solution. What a horrible experience this has been with them. I forwarded a new profit and loss statement yesterday as my income has increased in August and I expect increases in September and October as well. I am now self employed which seems to be making it more difficult to get an approval. My husband has his own business as well for the past month or so and we can't claim his income until he has been there for 3 months. I was told by a rep yesterday that I shouldn't keep appealing their decision because it could hurt my situation more-is that accurate? Also, I was told that our loan doesn't qualify for HAMP because our investor doesn't participate. I am waiting for their decision since I was asked to send a new P&L, what should I do if I am denied again?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
In addition, when I looked at my account online, they show that I am 299 days past due on my payments because they subtracted my payments made while on the unemployment program from the regular monthly payments and are now expecting to get that whole sum paid at once, it is approximately $40,000. When I began the program, I was assured by the rep that they would work with me at the end of the term to find a reasonable solution. What a horrible experience this has been with them. I forwarded a new profit and loss statement yesterday as my income has increased in August and I expect increases in September and October as well. I am now self employed which seems to be making it more difficult to get an approval. My husband has his own business as well for the past month or so and we can't claim his income until he has been there for 3 months. I was told by a rep yesterday that I shouldn't keep appealing their decision because it could hurt my situation more-is that accurate? Also, I was told that our loan doesn't qualify for HAMP because our investor doesn't participate. I am waiting for their decision since I was asked to send a new P&L, what should I do if I am denied again?

Welcome and thanks for joining the LoanSafe community.

Unfortunately, with any forbearance plan you will still owe the difference between your original monthly payment and the agreed forbearance payment once it is over. This program is designed simply to buy you time and delay the foreclosure process while you work on increasing your earnings or find a new job. Appealing their decision will not hurt your chances to obtain an affordable modification. The problem being self-employed is that the servicer will typically want to see at least a 3-month profit and loss statement to show a steady income, whereas w-2 employees will simply need to show two pay stubs to prove their earnings. Do you happen to know who your investor is? If not, you can use the links below to find out or you may have to send in a qualified written request (QWR) specifically asking for that information.

For Fannie Mae:
1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage

https://www.mers-servicerid.org/sis/index.jsp
 

keepingmyhouse

LoanSafe Member
Aug 27, 2013
2
0
0
Thank you for the information, it turns out that my investor is HSBC, it doesn't appear that they participate in HAMP. I understand that there is a difference between their income requirements are different for the self-employed, but I was concerned because they based my income on an average of 6 months when the P&L only represented 3 months of income. They denied me on the basis of their erroneous calculations. I had to sent another P&L including August. I hope they get it right this time. Also, Wells Fargo is supposed to be holding a home preservation seminar close to where I live, would it be a good idea to attend to speak face to face with a representative? The only people I currently deal with are in the west coast and I am in the east coast. Thank you again for the information, I'm glad that these forums exist. It helps to hear from others who have succeeded.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Also, Wells Fargo is supposed to be holding a home preservation seminar close to where I live, would it be a good idea to attend to speak face to face with a representative? The only people I currently deal with are in the west coast and I am in the east coast. Thank you again for the information, I'm glad that these forums exist. It helps to hear from others who have succeeded.
That's what this forum is here for and we will do all we can to help guide you through this process. If it were myself I would definitely attend the upcoming workshop in your area as it's always beneficial to sit down and speak with a representative in person. Nothing is guaranteed, but occasionally homeowners like yourself receive a decision on the spot. HSBC has been one of the worst investors to work with and has continued to refuse participation in various programs such as HAMP.