What does it take to pass Wells Fargo loan modification requirements? Most homeowners just guess at how to apply, and this usually winds up causing the bank to turn them down for any type of assistance. Don’t let this happen to you-take a minute to learn just what you need to show on your application to have the best chance of approval.
WELLS FARGO LOAN MODIFICATION REQUIREMENTS-
- Financial Hardship: loss or reduction in income, excessive debts, increased expenses (mortgage payment reset, medical bills, etc), lack of reserves (savings). You will have to sign a Hardship Affidavit under penalty of perjury stating that you can no longer afford your current mortgage payment.
- Primary Residence: you must live in the home-the program is not for second homes or rental properties. You may need to show a utility bill to prove this requirement.
- Your current mortgage must have been originated prior to January 1, 2009 and the balance must be less than $729,750 for one unit property (higher allowed for duplex & fourplex)
- The current mortgage expense (loan payment, property taxes, homeowners insurance and any HOA dues) must EXCEED 31% of the
total household gross monthly income. If your current payment is already below 31% of your income, you will not qualify. You can check your own debt ratio by running your budget through the Loan Modification Calculator-the program instantly calculates and displays your debt ratio, new target payment and modification terms.
- Your monthly financial worksheet included in the application must detail your income, expenses and assets for the household each month. Your income cannot be too high or too low, your expenses must also pass the cash flow criteria and your assets must fit into the program as well. This can be complicated, use the loan mod calculator to do all these figures for you – instantly and automatically shows you Pass or Fail and where you need to fine tune your own budget to qualify.
- Complete and sign the required forms: RMA, Dodd Frank Certificate, 4506t, and provide income documentation (30 days of pay stubs, P & L for self employed borrowers)
- Wells Fargo will acknowledge receipt of your loan modification application package, and within 30 days will notify you that you qualify for a trial payment modification, they need additional or corrected docs from you, or that you do not qualify for a loan workout.
The secret to meeting the Wells Fargo loan modification requirements is simple-it’s all about the MATH. Your financial worksheet must show just the right amount of monthly income, monthly household expenses and assets. The bank uses the standard formula -the loan modification calculator mimics that very same formula-so you can know ahead of time just what you need to show the bank to qualify.
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need-the loan modification calculator instantly and automatically computes and displays your very own sample monthly budget showing income, expense and asset requirements. Get started today-visit MyLoanModificationCenter.com.