Loan modification using firm

M&MCD

LoanSafe Member
Jan 15, 2014
4
0
0
Hi, I am new here. I hired a loan modification company(yes i know I am crazy) to help with a loan mod after being denied twice. They call every week with status but it has been three months. When I contact WF they have no updated information and neither is my account online updated with new info. How can the loan mod firm say expect paperwork soon when WF has no info. Shouldn't they be working together on this?
 

LovingOcwen

LoanSafe Member
Nov 16, 2013
283
6
18
St. Albans New York
Save your money and do not pay some "loan mod company". The same thing that they are doing you can submit your own loan mod. There are so many scammers out here taking advantage of people wanting to modify their mortgage. You need to contact a home counseling agency in your state which is FREE.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Welcome and thanks for joining the LS community.

I agree with LovingOcwen that there are countless scams out there and you need to be very careful who you contact to take on your case. If you paid any upfront fees for assistance and this was not through an attorney's service, it could very well be a scam. I'm not saying this is the case, but you may want to follow up with WF yourself if they claim to need updated financial information..

However, other than non-profit organizations such as NACA or state housing agencies, there's one company we do promote here that has had excellent results and ONLY charges a fee if they are successful and you receive a loan modification - that's the Loan Mod Help Center and you'll find dozens of members here who've used them. Such as member "Donnac" who has been striving for a modification for years and the LMHC was able to help her get approved in a little over a month.

http://www.loansafe.org/forum/chase-mortgage-tell-us-your-chase-story/87989-got-modification-chase-today.html

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M&MCD

LoanSafe Member
Jan 15, 2014
4
0
0
I have a first and a second with WF and I am underwater so I cannot refi. Each time they denied the mod stated I didn't have a hardship. My loans are not Fannie or Freddie but private investors(Wells Fargo). I guess it is my fault that I have paid on time every time for the last ten years and now I need help, they can not or will not help. What is the purpose of the hardship letter if they still determine you are not struggling. My first is 7.8% and has adjusted every year since I had it???due to adjust again in February. Second is 11.25%. Payments are ridiculous!!
Any advice?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Unfortunately, virtually all modification programs have strict DTI requirements and will require that your monthly payment (1st mortgage only) exceeds 25-31 percent of your gross monthly income. If your payment is less than that amount it will be extremely difficult to qualify for assistance as they don't necessarily consider a high interest rate a hardship.

Since you're underwater you can always pursue a 2nd mortgage settlement and stop making payments on that account. I recommend you read post #1 of the following thread and determine if this is an option you'd like to explore.

http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html

Which state are you located in?
 

M&MCD

LoanSafe Member
Jan 15, 2014
4
0
0
I am in Maryland. I bring home 3200 after taxes. 1st mortgage payment is 3300 2nd is 772. Originally started as 2064 first 772 second eight years ago. Purchase price 395,000..home is worth 260,000 based on neighbors on both sides sales in last year or so. I think the only way i have managed is by paying biweekly.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
I am in Maryland. I bring home 3200 after taxes. 1st mortgage payment is 3300 2nd is 772. Originally started as 2064 first 772 second eight years ago. Purchase price 395,000..home is worth 260,000 based on neighbors on both sides sales in last year or so. I think the only way i have managed is by paying biweekly.

When figuring the payment percentage to income for a loan modification, the lender will use the gross income and the PITI of the first mortgage alone, not net. What is the household gross income amount?
 

M&MCD

LoanSafe Member
Jan 15, 2014
4
0
0
When figuring the payment percentage to income for a loan modification, the lender will use the gross income and the PITI of the first mortgage alone, not net. What is the household gross income amount?
$6000 is total gross amount.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
$6000 is total gross amount.
With a payment that appears to be over 50 percent of your gross income based on what you have stated here, you would definitely be a candidate for a modification. However, it does get more difficult to prove the hardship when the payments are being kept current despite the homeowners ability to afford them. In these cases the lender will look into what is called imminent default which is described as;

A borrower who is an owner-occupant of a property that is security
for a loan that is current or has only one payment due and unpaid by the end of the month in
which it is due (i.e., a borrower that is less than 60 days delinquent) and who contacts the
servicer to request HAMP consideration must be evaluated to determine if he or she is at risk of
imminent default. Each servicer must have written standards for determining imminent default
that are consistent with applicable contractual agreements and accounting standards and must
apply the standards equally to all borrowers. Such standards may, if consistent with investor
guidelines, include a determination that a borrower is at risk of imminent default and will be
evaluated for a HAMP modification if the borrower is at least 15 days delinquent, has documented
a financial hardship, and has represented that he or she does not have sufficient liquid assets to
make the monthly mortgage payment. The mortgage file and/or servicing system must contain
evidence of this determination.


When making an imminent default determination, the servicer must evaluate the borrower’s
hardship as well as the condition of and circumstances affecting the property securing the
mortgage loan. The servicer must consider the borrower’s financial condition, liquid assets,
liabilities, combined monthly income from wages and all other identified sources of income,
monthly obligations (including personal debts, revolving accounts, and installment loans), and a
reasonable allowance for living expenses such as food, utilities, etc. The hardship and financial
condition of the borrower must be verified through documentation.


A servicer must document in its servicing system and/or mortgage file the basis for its
determination that a payment default is imminent and retain all documentation used to reach this
conclusion.


**When they reviewed your information and denied the modification on those two occasions sighting no hardship, did you have any liquid assets? For a modification they check to make sure that in order to support a valid hardship you show a lack of sufficient cash reserves to maintain payment on the mortgage loan and cover basic living expenses at the same time. Cash reserves include assets such as cash, savings, money market funds, marketable stocks or bonds (excluding retirement accounts and assets that serve as an emergency fund generally equal to three times the borrower’s monthly debt payments).**


If this didn't apply to your situation, you may want to re-submit a new package to WF on your own and discontinue using the modification company. The information that they require directly can be found here;

https://www.wellsfargo.com/homeassist/loanmodification

Or as Evan suggested you can work with the Loan Mod Help Center who will not charge you an upfront fee.

You can try contacting Michael from Loan Mod Help Center directly with the following inputs below, he can help determine what you may qualify for based on your information. He has been able to help many members of the forum to successful outcomes.

He can be reached here;

[email protected]
OR CALL IN WITH THE 14 INPUTS AT 855-678-6690


1. Loan Balance Now=
2. Past Due if any=
3. Gross Monthly Income for Borrower and Co Borrower=
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) =
5. Real Estate Taxes per month=
6. Hazard Insurance and/or HOA per month=
7. Home Value (check zillow.com or chase home value estimator)=
8. Mortgage servicer and Investor
https://www.mers-servicerid.org/sis/index.jsp
9. Other monthly debt payment total for credit cards and collections =
10. Current interest rate =
11. Fixed Rate or Adjustable Rate? =
12. Have you been modified before?
13. When did you get this loan, what year? =
14. If you own any other properties, it is best to set an appointment to discuss =