What Options Will I Have (If Any) With Wells Fargo?

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What Options Will I Have (If Any) With Wells Fargo?

My Wells Fargo mortgage story is like so many others facing hard times – I applied for Home Mortgage Loan Modification in Feb 2010 because of a job loss and terminally ill family member but was denied because I was current at that time.

Fast forward and I am now in default (5 months) on my Wells Fargo mortgage. I called Wells Fargo and was pre-qualified over the phone for a Loan Modification.

I would like to know what options Wells may come back with if my financials are as follows:

Monthly Net Salary $2,870

Monthly Gross Income $3,333

Monthly Expenses $1,913

Existing mortgage payment is $1,340 on a $185K mortgage (home valued at close to $100K)

Wells Fargo Mortgage Loan Modification Answer:

by Wells Fargo Mortgage Loan Modification Expert - Dan North

You did qualify for a HAMP Loan Modification back in Feb 2010 as you did have a valid hardship and legitimate grounds under imminent default. Wells Fargo should have started your HAMP Modification back in Feb 2010.

What You Qualify Under HAMP Guidelines

Under the HAMP Guidelines you are eligible for a modified monthly mortgage payment of 31% of your gross income. That would be $1033 per month and would include your monthly mortgage payment (principal and interest payments), home owner insurance and property tax.

If you do not already have property tax and hazard insurance being paid by escrow that will be set up by Wells Fargo as part of your modification that will be included in the 31% of your gross monthly income.

The 5 months of delinquent payments will most likely be added to the back end of your mortgage to bring your mortgage current and any late fees, charges, penalties and additional interest on late payments should be waived.

That is a rough outline of what you can expect from Wells Fargo. The specifics will change a bit when you add the property tax and insurance costs but you can run all the data thru the Net Present Value (NPV) Test and see for yourself.