Federal Plan
A Wells Fargo loan modification will now offer a more streamlined time frame as homeowners struggling with mortgage problems apply for the federal option called HAMP. Home Affordable Modification Plan has been around for over a year, but the Treasury Department has been very disappointed with the actual number of loan modifications completed using the government subsidized program.
Wells Fargo has one of the lowest completion rates of any lender, but with the new 2011 HAMP updates the goal is to actually permanently modify the loans of many more qualified homeowners. The lender had complained that the federal plan required them to collect too much paperwork and the borrowers were not submitting their applications properly. In response to this issue, HAMP now has reduced the amount of documentation required and outlined a specific timeframe that the bank must adhere to.
Wells Fargo HAMP Loan Modification 2011 Process:
- Borrowers request for a loan modification must be acknowledged within 10 days
- Upon receipt of a complete application package, lender must provide approval or denial within 30 days
- Upon approval, 3 month trial modification begins and after completion the loan modification becomes permanent automatically
- Homeowners who do not meet the qualifications may be offered another option, like a short sale or deed-in-lieu.
Wells Fargo HAMP Loan Modification 2011 will now require the following documentation:
- 2 most recent paycheck stubs for salaried employees
- YTD P & L for self employed borrowers
- Signed 4506T form
- Application (including financial statement) and Hardship Affidavit & explanation
Only qualified borrowers will be offered the Wells Fargo HAMP loan modification and may get an interest rate as low as 2%, possibly a principal reduction and a very affordable mortgage payment. The Treasury Department has mandated a standard formula to determine which homeowners will qualify for a loan workout, and based on the financial statement that the homeowner provides a determination will be made if they qualify. The goal is to arrive at a new mortgage payment that equals 31% of the gross monthly household income.
Homeowners who want to increase their chances of qualifying for a Wells Fargo loan modification should make certain that their financial statement-all the income and debts-fit into this mathematical formula for HAMP approval. If not sure how to figure this out, borrowers can use a loan modification software calculator that mimics the federal guidelines and be certain that their calculations are accurate and acceptable. Avoid mistakes and give yourself the best chance of approval-do it right the first time.
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13 Responses
I’ve been in the same Wells Fargo Home Mortgage hell for the past 18 months and am stilling fighting to keep my house. The following are two steps that you should take.
Step One:
Contact the Federal Trade Commission at 1-877-382-4357. (It took several tries before I was able to navigate the automated phone system and actually speak with someone.) File a verbal complaint and received a case number. The Federal Trade Commission logs these complaints to determine trends and if they determine a trend, they will file a “class action law suit” against the offending business/bank. Once you receive a case number you will automatically be put into the “class action law suit” if one becomes necessary. The more people that file a similar complaint the better chance of a “class action law suit” being filed.
Step Two:
File a detailed online complaint with the Regulatory Agency (www.helpwithmybank.gov) “Office of Comptroller of the Currency(OCC) ” of National Banks. Once the complaint has been filed they will issue you a case number. Then the OCC will contact the lender (Wells Fargo) for a response about your specific situation. Hopefully, they will be able to apply sufficient pressure to get the ball moving again. Their primary function is dispute resolution. They will not get involved if legal action has started. There is additional information at (www.helwithmybank.gov)
If enough people do these two steps it should wake someone up to the problem!
Posted on June 18th, 2010 at 3:15 pm
I’ve been in the same Wells Fargo Home Mortgage hell for the past 18 months and am stilling fighting to keep my house. The following are two steps that you should take.
Step One:
Contact the Federal Trade Commission at 1-877-382-4357. (It took several tries before I was able to navigate the automated phone system and actually speak with someone.) File a verbal complaint and received a case number. The Federal Trade Commission logs these complaints to determine trends and if they determine a trend, they will file a “class action law suit” against the offending business/bank. Once you receive a case number you will automatically be put into the “class action law suit” if one becomes necessary. The more people that file a similar complaint the better chance of a “class action law suit” being filed.
Step Two:
File a detailed online complaint with the Regulatory Agency (www.helpwithmybank.gov) “Office of Comptroller of the Currency(OCC) ” of National Banks. Once the complaint has been filed they will issue you a case number. Then the OCC will contact the lender for a response about your specific situation. Hopefully, they will be able to apply sufficient pressure to get the ball moving again. Their primary function is dispute resolution. They will not get involved if legal action has started. There is additional information at (www.helwithmybank.gov)
If enough people do these two steps it should wake someone up to the problem!
Posted on June 18th, 2010 at 3:16 pm
It should not be so difficult to get a Wells Fargo loan modification under the federal guidelines for HAMP. This April 2010 the process was simplified and given shorter timelines for homeowners to get a response. Wells Fargo now has 30 days from the receipt of a complete loan modification application to let the homeowner know if they qualify for HAMP. If the borrower meets the standard federal approval guidelines then a 3 month trial modification will begin. As long as the homeowner makes all those payments on time, the modification will be made permanent automatically.
If the homeowner does not qualify for HAMP with Wells Fargo, then they may be offered another option such as streamlined short sale or a deed in lieu of foreclosure.
The goal is to move the loan modification applications through the process much faster and help the homeowners get back on track. The responsibility of providing a complete and accurate Wells Fargo loan modification application is on the homeowner however. It is important to understand the basic guidelines for approval under HAMP so that the financial statement and other forms are completed correctly. It is not hard to learn, and there is a software program designed just for borrowers that will do all the calculations automatically.
You can read lots of free loan modification information at http://www.myloanmodificationcenter.com and also learn more about the loan mod software and how it can help to qualify borrowers.
Posted on July 2nd, 2010 at 10:27 am
30 days for approval or denial! BS – they just told me at least 90-120 days.
Posted on August 7th, 2010 at 3:12 am
The new HAMP procedure dictates a 30 day response to your loan modification application. Unfortunately, not all lenders and servicers are abiding by the new guidelines-at least not yet. This has been the ongoing frustration with the HAMP loan modification process-delays and participating lenders not following the federal guidelines. Part of the problem is that the plan allows for what are called investor overlays-this basically means that lenders and investors can add their own criteria to the standard process-this is confusing because they can change timelines, document requirements and even to some extent approval guidelines.
HAMP loan modification was designed to be a standard program that had published guidelines and standard modification terms. The federal treasury department gave banks an open door however by allowing them to tweak the program with their own overlays.
A HAMP loan modification is designed to offer a low affordable mortgage payment and give financial relief to eligible borrowers quickly and effectively. To learn more about the guidelines and how to apply visit: http://www.myloanmodificationcenter.com.
Posted on August 8th, 2010 at 12:35 am
I have been through two modifications in 08. I paid them a substaintial amount down plus 3 double monthly, on time payments. They told me there would be a fee after signing new 4.8% fixed 30yr. loan, but couldnt tell me how much, until the loan papers where sent out. I signed the new fixed rate loan and was happy with the new payment. I couldn’t pay the fee They through out everything because this contribution fee was $3400.00 and they wanted it in two weeks. I had just paid them over $7K through the 3 month period. This is a $86K loan. with a original monthly payment of $700.00 a month. You do the math. I tried this twice. thinking I had paid more the second time and the fee wouldn’t be so high, wrong. Now my only option is short sale, they say.
They keep this up, its not going to get any better. It’s obvious I’m not alone here.
Is there a legitimate modification program?
This is my first home. It would be affordable with a fair loan.
Posted on September 23rd, 2010 at 1:38 am
I was overjoyed to learn I qualified for the HAMP trial–my house was going into foreclosure with Wells Fargo. The new payment was workable, and I paid on time or early for 7 months. Unfortunately it became a HAMP limbo, with the end result of getting denied because I was now making too much money. If they had read the countless number of “hardship letters” I wrote, they would have known my income is variable due to self-employment and supplementing with adjunct teaching at a university undergoing decreased enrollment. Now I’m in another loan mod process with them, and the early word is I may be making too little income!! I paid on time or early for 7 months (vs. the 3 they said the trial would take), got credit counseling, sent in paperwork ad nauseum, running up large FAXing bills at Kinko’s etc. One arm of the company states the court date of foreclosure of my home took place in 12/09–right when I got approved for the HAMP trial. They refuse to accept any continued payments from me, so I now pay a fee to mail a cashier’s check to them just to keep payments going–I’m told they would have to accept that. They say call the foreclosure atty’s office to arrange payment of the balance I owe. Yet the loss mitigation person says don’t worry, just continue in the modification process and the house will not be in foreclosure yet. It has been extremely stressful for quite some time, with mixed messages, “never received” documents, phone conversations not documented in the system, etc. I desire to stay in my home, which I can afford with a reasonable modification, as through HAMP.
Posted on September 28th, 2010 at 12:34 pm
We’ve trying to get through the loan mod process for two years.There were constant denial based on, i don’t need it because i never missed a payment, or because my credit history is good… until payment got later and later each month and then stopped. Now they’re taking us seriously, they theyre not. We have been denied five times based on our failure to supply the needed information outlined in the letter they sent. Really!? When called, WF could not say what it was they requested, or when the letter was dated. Currently, as of Jan, 24th 2011. we are in active foreclosure. WF received a package from our attorney outlining all the code violations that occurred due to the refi they gave us four years ago (they lie a lot). Anyway, WF calls me saying the file will put back in suspense while the “package” is reviewed and acted on. As yet, foreclosure is active. The only thing that will get their attention is to file a law suit in parallel to writing letters to my Congressman,
Senator, Comptroller of Currently and the FTC, and outline everything in detail how they kept “screwing” with us. There are too many to mention here, but they will make great reading under deposition.
Posted on February 11th, 2011 at 7:56 pm
does anyone know if that HAMP rule re: 1st loan originated on or before Jan1, 2009, is hard and fast ? mine got escalated right now to presidential HELLS FARGO office – after 3 years of lies, manipulations, and the nightmares everyone else went thru – but actually have a ‘nice’ lady on phone at least after 3 years of abuse
i was given a horrid bad loan refi last summer ( that they called a loan mod ) that INCREASED my payment and did the 30-40 game – after 2 HAMP denials based on their gross miscalculations and nonsense
now flash forward a year later and they want me to fill out the HAMP paperwork again – what is the point of this if that Jan 1, 2009, rule is in effect ? i don’t get it … can they override that ‘rule’ ? or am i just wasting more time, money, and suffering – does anyone know if that ‘HAMP’ rule is in cement ! THX THX THX for any answers ….
Posted on July 23rd, 2011 at 1:12 am
I have been going thru the loan mod. process since March 2010. Wells Fargo’s game is to keep stalling and asking for new updated paperwork. There Guidelines say, “Wells Fargo HAMP Loan Modification 2011 Process:
Borrowers request for a loan modification must be acknowledged within 10 days
Upon receipt of a complete application package, lender must provide approval or denial within 30 days.” but they aren’t even following their own guide lines!
They are still getting their payments for servicing the loan that is owned by Freddy Mac so they couldn’t care less if they do any modifications or not.
I have submitted numerous new updated paperwork and as of 08-08-2011 they are still stalling. I suggest everyone file a complaint with their state Attorney Generals office as well as the BBB and Federal Trade Commission at 1-877-382-4357 and http://www.helwithmybank.gov.
I completed 5 months of $500.00 trial modification and the money is sitting there drawing them interest and has never been applied to my loan in any way.
I say let’s all get together and sue them for mental anguish and stress plus the money we have spent for Attorney’s fee’s. If nothing else will work, mabey this will.
Posted on August 9th, 2011 at 7:38 am
It’s sad that I am glad to see that a lot of other folks out there are suffering from the mind games being played by Wells Fargo around the HAMP program. I sent in my original application packet on 11-10-10 and never got any response from them. I went on the Internet and found out that there are local agencies that offer advocacy and representation and assistance with this process for free. (Beware of scams that offer to provide this service but charge you a hefty fee for which you get nothing). Even with an advocate, WF is rattling their sabers, threatening me with foreclosure if I do not immediately pay them the delinquent two months of payments I owe them. Believe me, I would if I could, because it would be much better than dealing with this bull—-! By the way, did you know that HAMP regulations state that the bank cannot foreclose on a borrower who is applying for or approved for HAMP? Write and call everyone, from President Obama on down. Better yet, get an attorney. What these banks are doing is illegal and there are already several class action suits pending against WF. They are receiving federal funds to provide assistance to strapped homeowners, and are not providing the service and foreclosing anyway. I worked my entire career in state government and believe me, we operated very efficiently and did not try to shaft our clients the way WF is doing. It is disgraceful.
Posted on September 13th, 2011 at 4:23 pm
Dealing with Wells Fargo loan modification can be a draining and frustrating experience, but some borrowers do succeed and get a lower mortgage payment. The main thing to remember is that the approval process is just about MATH-either your financial worksheet proves that you are an eligible candidate or not. That is why using the loan modification calculator can be an invaluable tool-instead of guessing at how much income, expenses and assets to list, all the required figures are computed and displayed for you automatically. At least you have a fighting chance if you know ahead of time what Wells Fargo needs to see from you to approval your loan modification application.
Posted on September 27th, 2011 at 1:05 pm
Thank you very much for this article! This information was very usefull for me=)
Posted on October 15th, 2011 at 5:13 pm
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