Many people are trying to get their home loans modified, but if you have a mortgage through Wells Fargo, you might find it's harder to do than you previously thought.
It sees as if lots of homeowners are in a position these days to try to have their mortgages modified. Loss of income, lower income or falling behind in payments has caused many people a real hardship. Some lenders are easy to modify your home loan with, but others have rules and standards that may make it feel impossible to get the lower payments you're looking to keep your home.
There are many reasons why you might have been denied for a loan mod, but much of the time, people will not even make it the modification stage. Here are some reasons that it might be really hard for you to get your loan straightened out:
1. Wells Fargo especially will tend to offer you a temporary forbearance agreement. This is a payment that you make over the course of three months to try to keep your loan from getting any further behind and to prove that you can make monthly payments on your account. If you agree to a forbearance, you must pay it as agreed, or you will get "kicked out" of the program and review process and be forced to start over.
2. The goal of Wells Fargo is to offer a mortgage modification that helps them to get roughly the same amount of interest out of your payments. So, your chances of succeeding are much better if you're able to resume making the regular monthly payments and have a back amount you want to have taken care of. If you're trying to have your loan payments dramatically reduced, then you might have a tougher time getting what you're looking for.
3. If you do not submit your paperwork the recommended every 30 days, then it's illegally that you will be given the opportunity to stay in the modification system. It's a time consuming process where Wells Fargo will review your case and try to make arrangements for you. So, if you're not making sure that the company has your hardship letter, proof of income, and financial worksheet each month, then you might be denied for your home loan modification.
In the end, whether you're working with Wells Fargo or any other lender, the most important thing to make sure to do is call them and keep calling them. Make your monthly payments if you can, so that you do not fall too far behind in your payments and make sure that you provide your lender with all of the paperwork they need. If you've been denied for a loan modification the first time, do not give up. Start over again and you might find that the second time around you have better luck.