Wells Fargo Said They
Made A Mistake

by Jane B
(Shark River Hills, Neptune New Jersey USA)




Last year after much consternation Wells Fargo sent papers on a modification I believed was the making home affordable modification ...there was a step payment schedule laid out with the amount due being $1137.39 for the first 5 years ....The amount due on the mortgage said $260.000 ...for 1 year I paid this amount.

About 3 weeks ago I was contacted that this payment was a mistake and has taken a year to correct and new documents were being sent....They came and the payment went up to $1320 and the amount due on the mortgage was now $265,000.

I contacted a local housing group...they contacted Wells Fargo who said to them that I am in arrears for over $7000, that the payment did not include taxes and insurance and was not a making home affordable modification....that I do not qualify....and was in house.....they state that I need to make a payment of over $1800 a month.

I am unable to make this payment as I bring in only $2500 on social security and a pension...my mortgage was a no income verification mortgage for 265.000....I know I cannot afford my home but the price I paid in 2007 was $335,000 and I put over $80.000 into it...so I do not want to short sale it...I already put it on the market for $335,000 ...The housing counselor said to short sale and not make any payments...what advice do you have...it is in excellent condition and shows well.....

Wells Fargo Mortgage Loan Modification Answer:

by Wells Fargo Mortgage Loan Modification Expert - Dan North

My first advice is not to sign the new loan modification agreement that Wells Fargo sent you. You already have a legally binding loan modification agreement from Wells Fargo that you can afford, even if they did make a mistake, it is legally binding.

Send the new loan modification agreement back to Wells Fargo with offer declined and send a copy of the previous loan modification agreement that you have had for the last year. State the agreement that is currently in force is acceptable to you and you do not wish to change it unless the new terms are better and affordable before you will sign.

Wells Fargo can not change the loan modification agreement without your signing the new agreement. Just refuse to change the agreement.

If you decide to sell your home, a local Realtor would have a better idea of what your home would sell for. If you can get $335,000 then go for it.

UPDATE: This Has Now Come Up With Several Of My Clients And Been Stopped

I have had several clients receive official letters from their lenders (now also Chase and B of A) saying they had to change the modification terms because a mistake had been made by the lender and now had to raise the payments.

I told my clients the same handling as above and each time the bank backed down and in one case the lender even sent a refund check as they had been charging too much in the escrow for the insurance.

This handling does work. There is nothing the bank can do to change the permanent loan modification agreement unless you agree and sign new papers or start paying the increased rate.

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Comments for
Wells Fargo Said They
Made A Mistake

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Rating
starstarstarstarstar 		Approved for permanent mod and then taken back NEW
by: Anonymous

I received a permanent modification from Wells, signed and had the documents notarized, and sent them back via FedEx as instructed. Now my Preveservation Specialist is telling me that my file has been removed from review because the settlement department needed an additional settlement amount from us in order to close the file.

We were not informed of any settlement amount nor were they on the documents. Now they are telling us the we no longer have the permanent modification and we will have to start the process over if we want one.

Can they do that? Has anyone experienced this?
Rating
starstarstarstarstar 		Texas Equity Loans CAN be modified NEW
by: Anonymous

I also have a Texas Equity Loan and was also told that Wells Fargo couldn't modify it because it was against the Texas Constitution. The AG's office said that sounds like BUNK. So, after a few letters and another call to the OCC and the AG'S office in Austin, I was told that the big banks TRIED to get away with not modifying Texas Equity Loans using "The Texas Contitution" but that has been changed and now they are supposed to modify them.

Contact the OCC and discuss this......and, good luck! I haven't paid my mortgage going on 14 months and just read and read, write letters, and read.
Rating
starstarstarstarstar 		Texas equity loan modification Wells Fargo (ASC)
by: katygirl

I agree with all that has been written here, because I have gone through it all trying to get a loan modification.

I did receive an in house forbearance agreement back in 2009 which lowered my interest and extended the loan for 40 years. Our income had gone down since then,and when I heard about HAMP I started calling ASC to see if they could work with me.

I have been dealing with American Servicing Company that is owned by Wells Fargo. I have been sending in the required paperwork for almost a year to get a modification. They tried to put me in their own forbearance agreement. I told them that I had applied for the HAMP and that is what I wanted and didn't sign the forbearance agreement. At first they said the the investor didn't accept HAMP. Why couldn't they have told me that when I first turned in my HAMP paperwork? Then later when I inquired again, they said the investor changed and now will accept it. Long story short, I kept being told I did not qualify for HAMP but they wouldn't tell me why. And try to find out who your investor is, when they say it is a private investor??? I could never get that from them.

Now I am in active foreclosure, after all the months of frustration and paperwork submitted), and they tell me that it would be illegal to modify my loan because I have a Texas equity loan.

I have found an attorney that is working on this matter, and indeed it is illegal under the Texas constitution to modify it because of the interest arrearages being added in.

The interesting part of this is that they have been modifying the loans (including mine) which has been against the law. Now, it seems that they have found out about their mistake, and I believe they are just leading you on so you will eventually give up and loose your home.

There seems to be many class action suits against Wells Fargo. If you have the same situation with the Texas equity loan, you need to get in touch with an attorney.
Rating
starstarstarstarstar 		you can win
by: Anonymous

Dan a bit of good news. But first I want to express this..There is a news blackout in these kind of cases, and it's not limited to loan modifications, your very lives are on the chopping block..TRUST WHAT I'M SAYING..YOU CAN WIN
"BUT YOU MUST FIGHT BACK AND NOT GIVE IN OR UP"
A long time fried of mine has repossessed her home from Wells Fargo, "that's right"..she repossessed her home. Just shows ya what can be done "IF" you show the will and determination... She was evicted last December, she had been challenging the bank for over a year.Instead of answering the unlawful detainer suite,( which you all should do, file an answer to the unlawful detainer regardless, take leave in your answer (which you can and should do) and file a cross complaint, this will delay the action and buy you a little time..) she mistakenly filed a motion when she should have filed an answer. A pro se, or pro per litigant, representing YOURSELF. The good news after all that she obtained a loan modification from Wells and she in back in her home....No eviction. That's the short story...like I said before FIGHT BACK....

I WANT TO MAKE A CORRECTION , ABOUT EMR, ITS MERS,
ANOTHER OCTOPUS...A private person sued MERS on behalf of the State of California( which you can do) to recover between 60 and 120 billion in transfer taxes..its on the web find and read the story..in fact read everything dealing with MERS....which will lead you to other stories, peel back the layers, get informed, get armed
with knowledge..FIGHT BACK...

In the beginning of this post.. I said your lives are on the CHOPPING BLOCK its true here's why..
There's another Group out there, that's been flying under the radar called ALEC: aka, American Legislative Exchange Council (goole the name as written not as alec you'll never find it.)
Take a look at what's happening tell your friends
pass the word around. MIND BLOWER..
Rating
starstarstarstarstar 		your right, Dan
by: Anonymous

HEY DAN,
Your right, the servicing Companies, Yeah,
that's another octopus,...and something else that may not get looked at often enough..CMC pass through, the mortgage pool. In all of the cases I've seen, when the so-called-lender was trying to foreclose, they were stopped dead in there tracks, reason was they didn't own the mortgage. They didn't own it, there name wasn't on it. The judge said, NO goodby....That's right .. that one factor stopped it, plus they had to pay damages to the home owner...I was in New York Superior Court last year...watching the judge question the attorney from the bank about a document "he" didn't have. He told the judge THEY didn't need it, because it was never needed before, welllll, the judge said "that's not going to happen NOT in my court" no rubber stamp for you today or ever. IN THEM WORDS, Judgement for the defendant.

That judge is reviewing every case that comes before him that deals with foreclosures, in fact he's the only judge reviewing these cases, if the attorneys for the banks don't have the proper paperwork together, case dismissed, and don't come back.

NOW..... as for the servicing companies,the other factor is the CMC pass-through,or CMO, CMBS, REMIC, SMPC'S a name ...still a Rose regardless of what U call it...there's one more Electronic Mortgage, MERS, this one is (being sued by the state of California, seems they didn't pay the transfer taxes to the tune of 120 billion at least that's what the complain alleges.)(BUT, that's what they were designed to do, not pay the tax)

As U said the servicing companies are the problem, yes and no. The yes part is they just service the loans: The no part, they may not "own" that loan.. the owners are stated above, who ever they are.. At this point its a vast pool of money, BONDS not stocks, as you know bonds finance debt. When a company, any large company, goes belly up, bond holders get paid first.

Something interesting happened the other day, related to the case against Wells I'm working on..
I found a document which I hadn't paid much attention to until now... Wells is not the owner
of the mortgage they are trying to foreclose on..
As for the question you asked, I'll see if I can get the case number for you, the case numbers aren't published until after a case has been decided....I'll look.... that's not the only one working it way through the courts. Hope I was help full.
S

Rating
starstarstarstarstar 		Mortgage Loan Modification Reply to: Fight Back and Don't Rollover
by: Mortgage Loan Modification Expert - Dan North

You covered quite a bit of territory but first I am very interested in the case before the California Supreme Court. What is the case and who are the interested parties? If you have a docket number or other information I want to follow up on that.

As far as what happens and why mortgages do not get modified you are leaving out the main player - the Loan Servicer. They stand to gain the most from foreclosure and will foreclose even when modification will benefit the investor and homeowner, if you let them.

Here is a very good article of a Chase Insider interview on why Chase, as a servicer, forecloses by Martin Andelman of Mandelman Matters.

Another big player is Fannie Mae, the organization hired by the government to run the administration of the Making Home Affordable programs. The very administrator of HAMP, Fannie Mae, is ordering servicers to foreclose even when it violates HAMP guidelines, not only is Fannie Mae sabotaging foreclosure prevention they are tanking home values by dumping houses bellow market value (to get rid of bad inventory before the government funds dry up) driving down housing prices then paid by the government to cover their losses.

Fannie Mae should never have bought those mortgages to begin with, under their old underwriting guidelines they never would have. If Fannie Mae was not buying risky mortgages on the secondary market lenders would have stopped making the loans. It really is that simple.

If, God forbid, you have equity in your home, Fannie Mae direction to servicers is to foreclose if you need a modification to keep your home. Read it for yourself in their own Fannie Mae Single Family 2011 Servicing Guide.
Rating
starstarstarstarstar 		Fight Back and Don't Rollover
by: Anonymous

I'm the writer of the story on Wells Fargo..
I'm a notary public certified signing agent, as a notary I see the loan modification documents that some of you have signed. Add to that I'm a loan officer (independent) I also sit on the consumer affairs commission in a county I won't name at this time.

FIRST THINGS FIRST - PAY ATTENTION......
The banks DON'T want to modify your loan, they are being forced to do so, thanks to the attorney general of New York and the 49 other states. More on that later. The new consumer Protection agency Obama set up, was to put some teeth in the law, but the bankers and right wing members of congress don't want YOU to HAVE " any" protections AT ALL.

WE FIGHT THE OPPOSITION TOOTH AND NAIL TO KEEP IT FROM BEING DE-FUNDED....GREAT PRESSURE IS BEING EXERTED against the attorney general of New York (I believe this is correct/if not I'll stand corrected) and other states not to accept the $48 billion settlement, to help some of you who have been hurt by the actions of wall street and the banks (the same group that created this mess). Go to your congressman/senator and raise hell, if he or she isn't willing to help remember that at election time.........

PAY ATTENTION........
THERE IS A CASE BEFORE THE CALIFORNIA SUPREME COURT, THE MATTER TO BE DECIDED IS WHETHER OR NOT AN AGREEMENT EXISTS REGARDING LOAN MODIFICATION ONCE SIGNED, IS IT BINDING... I SAY YES A CONTRACT IS A CONTRACT ONCE SIGNED.. RIGHT..

Well the bank foreclosed anyway, even with a signed loan modification agreement with payments current....HERE'S WHERE THE PROBLEM LAYS.....
your payments (they know this up-front) are not going to be enough to bring the loan current..

Question to ask: will the interest be lowered, will all or most back payments be forgiven, are any of the back payments going to be added to the loan balance in the modification agreement.

A true modification will have the following: lower interest, some forgiveness of back payments, and or reduced principal.

IF YOU WANT THAT FIGHT LIKE HELL TO GET IT...STAY ON YOUR TOES, DON'T ROLLOVER.. AS I SAY IN MY FIRST POST "SUE FOR BREACH" THEY LIE AND WILL CONTINUE TO DO SO UNLESS YOU PUSH BACK.

Here's the real shame, do you qualify. OK, using who's rules, remember they wrote the rules, the banks are being pressured to change and modify their rules so you can stay in your home.

I know for a fact modification documents were lost, payments were posted to the accounts and the bank foreclosed anyway.

WHEN YOU SEND DOCUMENTS MAKE SURE THEY RECEIVE THEM....STAY ON TOP OF THE SITUATION....DON'T RELAX FOR ONE MINUTE, DON'T TAKE ANYTHING FOR GRANTED....FIGHT BACK...
Rating
starstarstarstarstar 		CAREFUL OF WELLS FARGO, FIGHT BACK!
by: Anonymous

Everyone should be very careful dealing with Wells Fargo and Americas Servicing Co. STAY ON THEIR A, My Client and I have been dealing with their mistake for the past 5 yrs, which they refuse to fix. I've read cases where Wells and or Americas Servicing,foreclosed on a approved modifications shot sales..watched a lady crying in BK court,as she told her story to the judge
about how she had tried to contact Wells for a considerable amount time (as instructed by the court) and could not get them to respond to her calls.The judge stopped short of issuing a ordering to have wells contact her,,This Lady was in tears..Also on this day,I watched as the Judge RUBBER STAMPED (granted) at least 25 release from automatic stays...A word to you all if you want top keep your homes, FIGHT BACK.. let them defend their actions, a even chance is you'll win..Go to a local Law library, and learn how to draft a complaint, file it and serve it.. learn what to do.DEFEND YOURSELF..the banks aren't use to being challenged on any issue big or small.Fee waivers are available to you at the courts. AND if you get to trial ask for a trail by jury, you just might get a settlement out of court. NOW !! FOR YOU " SO CALLED LAWYERS GET OFF YOUR ASSES, STOP THINKING A DOLLAR AND DO A CASE OR 2 PRO-BONO YOU'LL BE BLESSED FOR IT. There was a lawyer I wanted to strangle,to suggest that the client " SHOULD" just walk away. WHAT!! the client didn't create the problem, Americas Servicing & wells Fargo did...with my help we'll go to trail later this year.. YOU CAN DO IT " IF YOU TRY" GO FOR IT.. sunn

Wells Fargo Mortgage Loan Modification Answer

by Wells Fargo Mortgage Loan Modification Expert - Dan North



I agree wholeheartedly. Arm yourself and fight back. Do not accept their brush off offers or denials. You can educate yourself and have many more options than Wells Fargo will have you believe.
Rating
starstarstarstarstar 		Not worth it
by: Anonymous

Wells Fargo changed my terms 3 times. I received a letter admitting that they made mistakes on 2 of those. But they still made me pay the interest that I had accrued because of said mistakes and gave me a ridiculous agreement.
Rating
starstarstarstarstar 		Chase changed my agreement after 2 payments
by: Anonymous

After 2 years we finally got a HAMP mod from chase for $1073.00 a month for 4 months. Now, after making the first 2 payments, they sent us a new letter, raising the amount to $1190.00 and extending the trial period another 3 months. When I contacted them they said they made a mistake in calculating the interest and I'd have to start the "first" new trial payment by 8/1/2011. I never signed any papers at all to do this, and we were struggling to pay the $1073.00 a month as it is since they base the payment on gross and not net pay. Is it legal for Chase to do this? I thought that by making the first payment we were agreeing to the terms. How do I know that I won't make another 2 payments and Chase will change the terms again? Is it worth it to keep struggling to pay this or should we just file bankruptcy? We have a 2nd with BOA/Green Tree. Will the 2nd discharge in a bankruptcy or can they also foreclose on us?

Mortgage Loan Modification Answer

by Mortgage Loan Modification Expert - Dan North



Unfortunately until you have a signed and executed permanent modification agreement your modification is not set in stone.

With a HAMP modification it is real clear cut. Your monthly payment is 31% of your gross monthly income. If you make $3,461/month gross income then $1073/month is the correct monthly payment under HAMP. If you do not make that much per month then you are being overcharged. As a note $1073/month is to also include your escrow for property tax and homeowner's insurance.

If you make $3,838/month gross income then the $1190.00 monthly payment is correct. Either your trial payment is 31% of your gross monthly income or it is not. If it is not you can insist that Chase correct the trial payment to the correct amount under HAMP guidelines.

On a bankruptcy you need to consult a Bankruptcy Attorney but the usual practice is to have your 2nd mortgage stripped from your property at which point they cannot foreclose. If you want to keep your home you will need to go over that with your attorney.

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