Did your Wells Fargo loan modification get turned down? Don’t give up yet, you still may be able to appeal the decision and get that turn down turned into an approval. There are many reasons why a loan mod will be denied, but here are some important things you can do to make sure that you are given every chance at approval.
Wells Fargo Loan Modification Turned Down – Appeal Steps
- First of all, determine exactly why your loan mod application was denied. The main reasons are NPV (more about that later), too little income, too much income, too much money in the bank. Ask the bank exactly why they turned down your application.
- Were you turned down for HAMP or the in house plan? If you applied for the government program, then there is a standard formula used to determine if your monthly income, monthly expenses and bank balances fit into the guidelines. If you were turned down for HAMP it is usually due to listing your financial information incorrectly on your application form, meaning your income, expenses and bank balances did not fit into the program.
- Verify with Wells Fargo that they have input your financial information correctly into their system. Very often it turns out that they have put the wrong information into their system. Have them read back to you exactly what they have for your gross monthly income, monthly expenses and bank balances. You may find a mistake has been made!
- If your loan modification has been turned down due to NPV (net Present Value) this has mainly to do with the current value of your home as determined by Wells Fargo. Make sure that they have an accurate value in their system. This is one case where the lower your homes value the better your chances are for a loan mod. If the value they are using is way off, then you can send in your own proof of current market value to get them to adjust their calculation.
- You are allowed to resubmit your application for another review as long as you have new, changed or updated financial information. You cannot keep sending in the same information, but if your monthly income has increased or decreased then you will be allowed to
resubmit your loan mod application. Make sure this time that your monthly budget fits right into the approval guidelines by running your numbers through the loan modification software calculator before sending it in for review again.
Getting news that your Wells Fargo loan modification has been turned down is not easy – but you can appeal the decision and by providing new, updated and acceptable information you may be able to turn that denial into an approval. Many homeowners had to try at least 3 to 4 times before finally getting the loan mod they deserved. Get informed, re-work your monthly budget correctly and re-submit your application the right way!
If you would like help to prepare your Wells Fargo loan modification application, use the #1 resource for homeowners, The Complete Loan Modification Guide kit and Loan Modification software program. You
can avoid mistakes and have confidence using the sample monthly budget generated automatically for you and increase your chances of approval. Visit MyLoanModificationCenter.com for more information.