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Wachovia/Wells Fargo Modifications

Submitted by on Thu, 12/03/2009 - 11:33
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Hi, I just wanted to warn people trying to get Wachovia/ Wells Fargo to modifiy your mortgages. You can pretty much give it up. We found out thru our lawyer that they are only doing maybe .5% of their mortgages. We have had our paperwork in, plus updated everything EVERY month, without them even asking for it since Feb 09 and they have NOT even looked at it yet. We have done everything THEY told us to do from the beginning. When we finally gave up, because calling them every month and being told they have not even gotten to it yet, we went and got ourselves a lawyer. We have since been informed that they will jerk you around until you have fallen so far behind that there is NO WAY possible to modify any loans. I also have a friend I do volunteer work with who is a loan manager at one of their branches and he informed us also, when I told him what our lawyer said, that yep they are instructed to basically jerk you around until you give up and you lose out.
Well, my husband and i gave up trying to work with them for our 1st and 2nd mortgages and have started the process to file Ch 13. It actually works out even better for us this way. Our home is worth $55,000 less than we owe on the 1st mortgage, which in Florida wipes out our 2nd mortgage completely-because they refuse to help us-Wachovia know gets to eat a $60,000 2 nd mortgage. We were not planning to do this, tried everything to avoid it. We want to pay our bills, but they will not help so now they are screwed. If they had worked with us like we begged and pleaded to get the mortgages together and modify, but they refused so now they are the ones hurting not us.
My home is worth less than owed and my property taxes went up form $600 a year to $3000 a year(in 1 year no less), with a so-called 3% cap on increases that Fl supposedly has, what a joke. House insurance more than doubled, electric rates jumped up, but we bring home $35,000 less a year(all this in a 1 year time frame), and a human being is supposed to survive. I am about ready to leave this planet, so tired of fighting to survive and get kicked in theassss over and over and over.
Just know if you are trying to get Wachovia to modify your mortage, give up it aint going to happen.
Best of luck to all of us who are hurting and cant see the other side


Unfortunately you are correct, my husband does work for a mortage company (not the 2 you mentioned) and has told me that unfortunately due to government pressure, they are all being told to send out information about modification but sadly enough most people do NOT qualify. It is NOT easy to get a modification as many ADs online AND tv now indicate. Many people are being told from initial information taken, that they can start immediately paying LESS on their mortgages and then later they are told ooops sorry you don't qualify and then they are
"behind" on their mortgage payments. WHAT A MESS!!!

Also, these companies online that claim to assist in modifications are all scams. If you are eligible for a modification, just call and ask for one. You either qualify or you don't. You don't need to pay an outside company to help you. My husband has told me that HMP is really not working well and he deals with it every single day. If anyone wants to know more, I ma glad to ask him questions if needed.


Submitted by Mary Adkins Matthews on Thu, 12/03/2009 - 12:16

Mary Adkins Matthews

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You are correct...Majority of people are not approved for a loan modification and going through an outside company and paying them fees does not make a difference. Please understand though that alot of people have been approved and it has helped tons of people lower their mortgage payments.. I am a hud approved housing counselor and everyday I have seen people save anywhere from $200 a mth to $1500 a month on their mortgage payment. But what people do not understand is that it is all up to the investor and who actually backed your loan. If you do not have a Freddie Mac, Fannie Mae or FHA loan, you will not be approved for MHA.. You will only qualify for a regular Loan modifccation that the mortgage company makes up.. And it pretty much depends on the budget and what figures you give them. Everyday I talk to so many people who think that just because they are on unemployment and making $1500 a mth, when their regular mortgage was $3k amth, they should be approved and payment should be lowered. that will not happen.. If they see that you will still be short after lowering your mortgage to 31% of your income and still have to pay all of your other bills, expenses, debts then you will not be approved!! Whatever figures that you give them, have to show that you will be able to afford the new payment. There is so much involved with the process and peole are misunderstood... Its a great program, but not something that will help everyone!!


Submitted by on Thu, 12/03/2009 - 20:13

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I will have to ask him but I am almost certain that he had told me that no one with an FHA is eligible. But he basically said the same thing you did, it has not helped many people at all. Without saying where he works, I will tell you that they have only modified less than 10 people out of the ones that did qualify. He said most people that do qualify will not save much and So far he said the average that he is seeing is about 80.00 a month


Submitted by Mary Adkins Matthews on Thu, 12/03/2009 - 21:13

Mary Adkins Matthews

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Our first is with Wells Fargo and I have been trying since April to get a mod. We were tunred down once because our income to debt was to high that even with the mod we still be be hurting. We tried again and finally gave up on trying to work out something with CC people and filed Chap7. Since we went in chap7 the mod got turned down for the 2nd time and we were told now we have to deal with the bankruptcy department. We are behind a few months and we just got papers from them asking the courts to take it out of chapt7 so they can work out some kinda loan mod with us. We talked to our Laywer and he said it was normal for them to do this so they can work with us and not the court trustee... So more BS we need to do sometimes we think its not worth it since we owe $429k and the houses around here in are selling for $330-$3340.


Submitted by on Fri, 12/04/2009 - 01:17

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Aww. So sorry you are going through this.. Yes it is very difficult to deal with a modification, especially when you are going through the bankruptcy process. They make things 10 times as hard...
And MCA, yeah they just passed the FHA modifcation law so its new.. It passed in August. http://makinghomeaffordable.gov/pr_07302009.html ... And it really does depend on who your lender is, because some companies are helpful and the process is easier, while others will rarely do it and put you through so much that it makes the situation worse.


Submitted by on Fri, 12/04/2009 - 07:55

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Quote:

Originally Posted by Anonymous
You are correct...Majority of people are not approved for a loan modification and going through an outside company and paying them fees does not make a difference. Please understand though that alot of people have been approved and it has helped tons of people lower their mortgage payments.. I am a hud approved housing counselor and everyday I have seen people save anywhere from $200 a mth to $1500 a month on their mortgage payment. But what people do not understand is that it is all up to the investor and who actually backed your loan. If you do not have a Freddie Mac, Fannie Mae or FHA loan, you will not be approved for MHA.. You will only qualify for a regular Loan modifccation that the mortgage company makes up.. And it pretty much depends on the budget and what figures you give them. Everyday I talk to so many people who think that just because they are on unemployment and making $1500 a mth, when their regular mortgage was $3k amth, they should be approved and payment should be lowered. that will not happen.. If they see that you will still be short after lowering your mortgage to 31% of your income and still have to pay all of your other bills, expenses, debts then you will not be approved!! Whatever figures that you give them, have to show that you will be able to afford the new payment. There is so much involved with the process and peole are misunderstood... Its a great program, but not something that will help everyone!!


Just wondering if that is 31% of your gross or net income?


Submitted by on Mon, 12/28/2009 - 11:11

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Hold on just a minute, I work for a mid sized mortgage company, we are near the top in the country for approving HMP trials though. I have worked on HMP, FHA, VA FNMA and now various conventional loans, in the loss mitigation department and we approve hundreds a day for HMP, FHA HAMP and traditional mods. I know that many other companies are lacking the staff to accomplish the amount of workload these programs are requiring. My suggestion is to keep calling and checking on the status. When you are faxing in your package make sure that you have a complete package. If you feel that your mortgage company is jerking you around, they most likely are not. They cant afford to have another property go to foreclosure sale. That is why they keep postponing your sale. They want to review your information, to see if they can keep you in your house. Mortgage companies are not in the business of selling foreclosed homes, but to keep your mortgage performing.
True not everyone qualifies, but if your payment is already under 31% of your gross income your mortgage company can review for a traditional modification. Also sometimes you may not qualify for either if your mortgage payment cannot be lowered enough to where it is affordable for you. Then you need to look at selling your house.

This is from 7/09 from the US Treasury, for HMP statistics

[FONT=Arial][SIZE=1][FONT=Arial][SIZE=1][LEFT]http://www.treas.gov/press/releases/docs/MHA_public_report.pdf

[/SIZE][/FONT][/SIZE][/FONT][FONT=Arial][SIZE=1][FONT=Arial][SIZE=1] [/LEFT]
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Submitted by loss mitigation on Wed, 02/10/2010 - 19:31

loss mitigation

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MCA; people are approved for FHA HAMP, but with the FHA program a traditional workout is suppossed to be looked at first, either a partial claim or a traditonal modification, then if neither are an option it can be looked at for HAMP. Yes sometimes a payment lowers $80.00, I've seen them decrease over $500. With FHA loans generally the upb is lower then a conventional loan, thus the decrease is lower as the payment would already be lower. FYI VA is also joining the HMP bandwagon, my company is still in the process of figuring out how the VA program will be determined


Submitted by loss mitigation on Wed, 02/10/2010 - 19:42

loss mitigation

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