Wells Fargo Home Loan Defaults—Would More Permanent Mortgage Modifications Help?
Wells Fargo, despite posting profits for the fourth quarter in 2009, have said that defaults on homes are still taking a toll and with unemployment still a huge problem, many worry that Wells Fargo, among other lenders, are going to see more trouble in the near future.
Despite making 8,424 permanent home loan mortgage modifications, many wonder if Wells Fargo would benefit, or suffer less loss from defaults, if they were to make more home loan modifications permanent.
There has been trouble with the home loan modification program and many lenders are being asked to do more to make home loan modifications permanent, but opponents of the program say that unless unemployment is stopped there is little to be done to avoid foreclosure.
Arguments in favor of the program suggest that if lenders like Wells Fargo made more permanent modifications there would be far less defaults on home loans and Wells Fargo would fair much better, even with some homes redefaulting.
It’s no secret that housing and unemployment have taken its toll on the economy, but many people are asking the question: what should we do about homes until jobs are created?
Wells Fargo, through the home loan modification program has tried to help homeowners achieve a more affordable rate, and there have been problems in doing that, but should big banks like Wells Fargo take a chance and put their modification program in overdrive to help as many homeowners as they can?
Doing so could very well put many homeowners in a position to avoid foreclosure, which would save Wells Fargo from a loss of profits on defaults, but are big banks willing and able to do this and can homeowners, in light of such high unemployment, keep up their mortgage payments even with a modification?
Lets see…We have been jumping hoops through WF;s hamp.loan modification for over 18 months. We are now on our second hamp trial period. The first lasted for five months…never told the true reason we didn’t qulify… we made too much and than too little. WF did a loan modification after the first hamp fell through,, We thought our loan mod was approved however, it just vanished in thin air. We had sent in the final paper for the loan mod and the next week we were put back on the second hamp program. Over whelmed and tired of trying to save our home when our area has homes fell to less then 200,000 then what we paid for it. Sad, we were responsible by putting down 150,000 on our loan and it was nor a risky loan …..now we have nothing and must start all over in our late 40’s with three children. We feel lost and hopeless…thanks Mr President, Freddie Mac and most of all Wells Fargo!
I have spent 6 months trying to get a modification. Any requests have to make it through 3 departments within 30 days or everything stalls out. You must continually update the proof of income, so make it a practice to automatically fax updated information every month until you finally hit the correct internal cycling within WFHM.
I have made 6 months of timely payments while making multiple attempts to submit paperwork. That would have fulfilled 2 trial periods, let alone the one necessary to finalize the deal. I find it unbelievable to be rejected for not meeting WFHM’s criteria and then then given only 24-48 hours to provide additional documentation or my trial loan modification would be terminated.
Being unemployed, I have almost no chance of turning around such a request since the Department of Workforce Development is so far behind in processing claims, and the state is forloughing employees to save money.
We have also been trying for 1 year now. We went through 2 trial periods and were approved, paid our first 2 payments then were told we needed to start all over again. The sent us a letter stating we were 7 payments behind which we were not(we were paying the modified amount) then I found out it all went on our credit history as delinquent. I have called and called and now we are in limbo again. We are going to continue by the first contract we have that was signed and notorized and go from there. The government who is trying to help should be overseeing these banks a little bit better.