I was just approved for a Loan Modification through Wells Fargo but after reading all the horror stories I am very nervous.
What should I be looking out for so I don't get taken advantage of?
Wells Fargo Mortgage Loan Modification Answer:
by Wells Fargo Mortgage Loan Modification Expert - Dan North
That depends if you were approved for a permanent loan modification or three month trial period loan modification with Wells Fargo.
If Approved For A Permanent Loan Modification
If you have an approved and signed permanent loan modification agreement with Wells Fargo you are set to go. Once that document is signed your mortgage contract terms have been changed. This is now your new mortgage contract and it is legally binding on Wells Fargo. They can not change it unless you agree to the changes in writing.
It has happened that they come back and say they made a mistake (see article Wells Fargo Said They Made A Mistake). Read the article as it gives the handling, but in a nut shell you can turn them down and keep the loan modification even if they did make a mistake.
If You Were Approved For A Trial Modification
Make your payments on time during the trial period. The HAMP guidelines state this is to be a 3 month trial period but can stretch on for 6 months or more and still not be approved after the trial period.
If Wells Fargo Turns Down Your Permanent Mortgage Modification
If after the trial modification period is over Wells Fargo denies your permanent loan modification then send out the three Qualified Written Requests as covered in How To Save My House From Foreclosure - 3 Ways To Stop A Foreclosure Sale. This will get your loan modification back on track if there is any chance of saving it. Sometimes there is nothing you can do to keep the house, if you just can not afford the house.
See what Wells Fargo can approve by running your own NPV Test (Net Present Value Test). This is the test they run to see if it is cheaper to modify or foreclose. It is cut and dry if you can not pass the test. Run your financial figures through the test and play around with the figures to find what passes and what gets you the best monthly payment. You can and should propose the terms you want that pass the test.
Apply for No-Upfront Fee Hardship Loan Modification Find out for yourself. Apply for no-upfront fee hardship loan modification even if you do not qualify for the Government Making Home Affordable Modification Program. You may qualify for a No-Upfront Fee Hardship Loan Modification. (Currently available in California, Oregon and Washington more states being added)
DIY Loan Modification Kit Are you looking for a DIY Loan Modification Kit that will walk you through the entire process of modifying you loan? Then read on. Gain the competence you need to submit and negotiate like a PRO - with real insider advice on how to negotiate a modification.