Home Loan Modifications
Like so many others, I am in the middle of a Home Loan Modification. While waiting in 'limbo', and anyone else in a mod knows what that means, I look for comfort from others in my situation online. Unfortunately, it has been page after page of nightmare stories, and though they are full of useful information, and I do really hurt for those having had the worst case situation happen to them, I can't read anymore of them. It causes a level of fear in me now, where I just can't even sleep at night!
So I am starting this blog. This is not for the stories of those who have gotten totally screwed by the system already, there are already a ton of places for those stories. This is for people currently going through the process, who haven't been screwed yet, and are really hoping to hear something positive. So, if your starting out in the process, or if you have completed the process and have actually gotten your final approved mod, please tell us! We really need some light at the end of our tunnel here!
3/5/2010
EDIT: A created a new blog for questions/comments, at the request of my stressed out email :P
Please post them here, and I will get back to you ASAP: http://hampquestions.blogspot.com
Read the 'comments' of this post for updates and answers!
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I guess I will start with my story....
ReplyDeleteIsn't much of a story to tell yet. I have been with Wells Fargo for a long time, and so far, they have never let me down. We have been in our home for over 3 years, and never missed a payment.
In 2009, we had a lot of unexpected expenses and set backs, and by Nov, I was about to miss my first mortgage payment ever.
I called Wells Fargo, and they told me I was approved for HAMP. I didn't know anything about it, so I asked a lot of questions before getting on board and setting up my first 3 trial payments for automatic removal. A few days later, I received the forms, filled them out, and returned them the next day.
The down side so far, is that the person I first spoke with, it seems, was very misinformed, and everything he told me was basically a lie. I did have to go through a few weeks of nightmares and phone calls from hell. You know the drill.. a bunch of people who put you in tears, no two people who say the same thing, and finally one rep who tells me that you cant trust what the reps tell you, because a lot of them don't like to read their email updates, so they don't really know whats up, and just say anything. That was the most honest thing a rep has said to me so far, lol.
I still have a lot of unanswered questions and fears, and still can't get any straight answers, but if everything goes through as they have said it will, I guess it doesn't matter. My questions really are only of concern in a worst case situation if things DONT go as planned. Just to be on the safe side though, I wrote a letter to a few high level execs in Wells Fargo asking for the truth of it all. Hopefully I will hear back from them, and I will let you all know what I find out.
Another thing I wanted to mention, as I haven't seen this talked about much... FICO Scores!
This is the source of a lot of trauma for us on the mod path. We are being reported or being told we will be reported as either Del or Pays Partial, both of which are damaging to our credit.
I found this online in a few places:
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"As of Nov. 1, lenders have a new, more benign way to report government-sponsored loan modifications. But you need to ask your lender how they will report.
Under guidelines put out by the Consumer Data Industry Association, lenders should report them as a "loan modified under a federal government plan," said Norm Magnuson, a spokesman for the association, which represents credit bureaus.
FICO will ignore this new notation for the time being. FICO is the number one provider of credit score information. It will neither help nor hurt a person's credit score until FICO decides how to treat it."
*
I also asked about this in my letter to the exec's, as none of the reps had even heard of it. Let's hope we get an answer back on that too!
Yesterday I called WF, and they confirmed they received my docs, and that everything is there. In a few days my first Trial will go out, so we'll see what happens, and I'll keep you all updated!
As of today, this is how the status online is showing:
ReplyDeleteStep 1 File Set up COMPLETED
Step 2 Trial Period Agreement Sent COMPLETED
Step 3 Request for Income Document COMPLETED
Step 4 First Payment Received NOT RECEIVED
Step 5 Second Payment Received NOT RECEIVED
Step 6 Third Payment Received NOT RECEIVED
Step 7 Documentation Under Review IN PROCESS
Step 8 File to Negotiator NOT STARTED
Step 9 Workout Approval Process NOT STARTED
Step 10 Agreement Sent to Borrower NOT STARTED
Step 11 Received Signed Agreement NOT STARTED
Step 12 Loan Current Thru Workout NOT STARTED
I would also like to point out that I called WF, and asked if they had all the docs they needed, they said yes... the online status says:
ReplyDeleteCurrent Status: Additional Documentation is needed.
mmmhmm..... that'll be a fun phone call for me on Monday (ugh).
I received a phone call from the WF Exec offices today regarding my emails I sent out Friday. The person assisting me there gave me his direct number, so I can contact him with any questions. He is also going to check on my loan to see whats going on and where it is at, and will call me back later.
ReplyDeleteAs for the FICO related question, he said they are looking into reporting the loans in the new way, and they will be going back on all the previous reportings to change them. Thats good for everyone who was previously reported in a negative way. :)
I also forgot to make copies of the docs before I sent them back to WF, so he is gonna have copies sent to me.
I'll post more later when I get called back
Well, still no call back yet... I am guessing he probably isn't there much due to holidays and all. I'll give it till Monday to hear/receive something, then I'll start with the phone calls again.
ReplyDeleteCouldn't hold out till Monday, cracked and called today. He said that yes they confirmed receiving everything I had requested, and that the copies I requested of everything are on their way, woot!
ReplyDeleteSo far so good, and he said to just make the trials as planned and wait for my final review.
I should also note.. getting a specific person to work with you is really great. I just said "Hi, Its Jen Chou, just wanted to touch bases before the holidays and find out whats up?".. didn't even have to give any personal information, he knew who I was and pulled up my info right away. That's way more comforting that repeating yourself twenty times to another stranger. Anyone having trouble with their Loan, I really recommend calling the exec offices and getting the name/number of who ever you talk to there. They don't actually 'give' you someone. I told the person that I spoke with that I just could not deal with the 'reps' anymore, and would appreciate it if I could call him personally. So now that's what I do :P
ReplyDeleteGood luck all! I'll post more as it happens.
Just wanted to give a quick sum up to answer some questions a few people might have:
ReplyDelete*********************************************
Reps know nothing, don't deal with them. Call the execs if your having problems or questions:
1-800-853-8516
Online status update doesn't update, so don't rely on it. That was told to me by a WF exec.
Trial payments will hurt your credit - for now. They are looking into a different way of reporting, and when they do change, they will go back on everyone's credit and change the previous reporting status that was used on our credit reports.
They hope to get to the point where people really do only have to pay 3 trial payments, but that is not the reality right now. You are set up for 3, but they are still playing catch up. People just now or just recently entering into the program should expect 4, and possibly 5, trial payments. They are getting down to being able to finalize the approved mods around 30 days after the 3rd trial payment. After your third trial, you should continue to make your trial payments on the first as usual until you receive a decision.
You will need to re-verify income again after the 3rd trial payment, just to make sure there hasn't been a change in income.
Biggest reasons people are being denied (according to WF exec): incorrectly stating income and/or having a savings account or side stash of cash (stocks, etc) that total more than 3 months of payments and/or $4K.
If you receive a foreclosure notice or some other horrifying news that you shouldn't have during the trial, don't call the reps about this, call the exec team. Unless you have been denied, you shouldn't be getting any bad news.
Now for the bad news:
After all is said and done with the trial, if you are NOT approved, all that difference in payments (your normal payment - what you paid on the partial payment trial) becomes due.
Your options are: Pay up. Have payments spread out over approx 12 months. Try try again with the mod (which could put you further in the hole if you are denied again). Try for another (non HAMP) mod.
I highly recommend that you hold on to as much money as you can every month while on the trial, as well as those tax returns we got coming up. If it goes south, and you don't get approved, your going to need it to pay off that balance, especially if your going to go for a round 2 on the trial. Try to keep yourself from sinking as much as you can.
Keep communication going with the same person. Get a name & number for someone in exec, and only deal with them. Call every month after you make a trial payment to confirm that they received it and to make sure they still have everything they need.
Hope this helps, let me know if you have any other questions. Good luck and happy holidays!!
Oh, this is interesting....
ReplyDeleteI hang out on a lot of forums, mostly with other people going through the HAMP nightmare.
One of the forums I came across last week, loansafe.org, has a HUGE collection of distressed people.
I try as much as I can to help out and answer questions there. This morning, one person on the forums was in a bad place with WF, regarding their loan mod. I posted a response advising as best as I could, and included a link to this blog in hopes that it might help her. All posts, of course, must go through the forum admins. Mine was never posted, and I was banned. Soo.. one stressed homeowner trying to help another, on a forum that says:
"Please also visit our online self help forum with thousands of struggling homeowners and just plain ole folks like you trying to make it in today's rough economy."
I get banned for trying to help someone else. LOL.
I did managed to get my email to that person though, and give them the info to help them via that route.
Oh, and their site also says:
"LoanSafe.org advocates to protect and strengthen the nonprofit housing counseling sector on the internet by being the central website/forum to exchange ideas and information that will assist everyone in the fight to help people save their homes."
.... really?? LOL
I find this even more humorous, considering every page of their site and forum is filled with spam ads for 'loan help' sites (uh huh), and NOT the nonprofit kind ;P
Sorry for the rant, I just get annoyed when I start seeing a red flag for anything that may further trouble people already in a bad situation, purely for someone else's greed.
The phrase 'wolf in sheep's clothing' comes to mind. hmmm.
**End Rant**
It was a nice holiday :)
ReplyDeleteDreading tomorrow (Monday), so much to do! It's almost time for the first trial payment to be taken out of my bank account(Jan 1). I'll post tomorrow on the current status according to WF online. Looking forward to tax time though! Get some bills paid off with that refund, though probably not till after all this HAMP stuff is over with. Think I am gonna pull the cash and sit on it till then. :P
Its monday! Current loan status online:
ReplyDeleteCurrent Status: Additional Documentation is needed
LOL and no change in status overview.
I did, however, get a letter in the mail today from the exec at WF that I have been dealing with. It contained the copies I had requested of the orig docs that I mailed in. He also included a letter stating:
"I would also like to confirm that the documentation necessary for HAMP was received on Dec 15,2009."
and
"Please accept this letter as confirmation that resolution of your request requires no further response/action by Wells Fargo Home Mortgage."
In short... I've been a royal pain in the arse about making sure they have everything, because I don't want to get nailed with a 'we didn't receive blah blah blah' denial. I guess they got tired of it and decided to give me a confirmation in writing :P
I'll post more when there's more to post. Happy Monday!
Coming up on our 3rd trial payment. Haven't heard anything more from WF, other than the monthly phone calls to remind me to make my payment :P
ReplyDelete*Crosses fingers that all goes well*
So, just made the third trial payment... Then I couldn't log into the online account to track the status of my mod.. ARGH!! I called WF, and got bounced around in a full circle of people, none of them knowing what was up or how to fix it, and eventually claiming it to be someone else's department and transferring me. Eventually I got transferred back to departments that had already transferred me out, and I finally gave up. I really hate feeling blind as to where it is at now.
ReplyDeleteA lot of people seem to be having problems from the www.wellsfargo.com/assist website. A lot of log in issues.. the common factor seems to be that we are all close to the end of our trials, and our documentation has been sent to negotiation. A few people have received a final mod offer shortly after, and some have received a denial. The log in 'error' message that we are getting seems to vary as well. Some receive a message telling them to call a phone number, and others, like myself, receive this one:
ReplyDeleteVerification Denied: Unable to verify access using the information provided
I called WF again today to try and find out whats up again.. no answers there as to why I can't log in, but I am told they are in the process of making a decision, but a decision has not been made. *Sigh*
*Crossing toes now too*
Another round of Q&A:
ReplyDeleteI used HOPE, they were very easy and nice. The financial workup she did looks something like this:
(Using the trial payment amount)
2719.17 monthly income
2470.00 total expenses
249.17 expense to income variable
She stated that this was good, and would be likely to help get us approved for a final mod.
Our mortgage before the trial was 1822.80/mo, and with the trial is 1085.00, both are with taxes/insurance already.
My hardship stated is loss of income.
Another bit of interesting information:
ReplyDeleteJust got a letter in the mail, basically telling me I'm delinquent (duh! I was current until I went into the HAMP program, thanks very much!) and that I owe a big chunk of change by the end of this month, or else action will be taken. After I got my heart restarted, I called directly to the exec/presidential offices again.. she informed that it was standard auto generated by the system and to ignore it. She pulled up my account and verified I am in review and have not been dropped from the program. I prodded for a lil more info, trying to nail down a time line, and heard something useful... this explains why some peoples loans are taking forever, and others are not.. if your going the standard route, expect heavy turn around time from your third payment until you get your actual decision.. roughly 120 days.. BUT if your dealing directly with the exec offices, your loan is 'escalated' onto the fast track, and your gonna get 30-45 day turn around from payment 3. She also did confirm that the account block for the assist site is often related to the end stages of the process, and that some loans that are being 'fast tracked' wont ever have online status on the assist site. Hope this info helps a few of you.
I just got a call from WF 'Office of the President' informing that we got the mod and the docs are being over-nighted to us! The rough end of what she said over the phone is 4.5% for 60 months, then 5% for the life!
ReplyDelete