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Digital News Report – There are various loan modification programs including private and public programs. Wells Fargo, Bank of America, Fannie Mae, Freddie Mac, the U.S. government and some state and local governments all have loan modification programs.
Wells Fargo has a plan available to provide assistance through their forbearance program. This program is specifically designed for the unemployed and underemployed homeowners.
Bank of America will have a National Homeownership Retention Program. The lender just updated the details of their plan help Americans “sustain homeownership”. They don’t want foreclosures or defaults so the company is beginning a program to help their customers.
Fannie Mae and Freddie Mac have been taken under the government’s wing. The Making Home Affordable program (HAMP) was designed to help thousands of homeowners save their homes. Last week President Obama updated this program to help save homes.
The unemployment rate has skyrocketed since the economy turned downward. There are signs that the country is moving back in the positive direction and these programs are intended to keep America on track.
By: Tina Brown
thats funny I cant get anyone to help me!!!!!!
Dear Government- please check into the policies and procedures at Wells Fargo because they are Crooks robbing consumers of their homes and credit and the American DREAM.
I have been trying to get a home modification through Wells Fargo for over a year. I finally hired an attorney about six months ago with lack luster results from the bank . We have two mortgages with Wells Fargo.
Wells Fargo broke it up our mortgage into our first as an interest only with a 10 / 1 arm. The second was listed as a Equity line which they controlled at a much higher interest rate but it included principal and interest. The rate is at 8.2 %. Controlled meaning it was automatic withdrawal and we did not have access to any equity we had at the time.
I tried for six months on my own to get the modification. These are the reasons they put in writing on why it was rejected. Side note: Wells Fargo holds our 1st, 2nd, and is our investor.
Reasons for rejection:
1. *Modification not in the best interest of the investor* (yep, they put in in writing)LOL
2. “Modifications are outside of investor guidelines.” meaning they don’t do them!
After we hired the attorney the reason was:
3.*Investor does not participate in the government program Making Home Affordable.* The big banks have a right not to participate in the program. Now, where does that leave us the consumer? Now where do we turn?????
They say we don’t qualify for this program anyway because Wells Fargo is our investor and it is not a Fannie Mae or Freddie Mac backed loan. Then they say we are below the 31% ratio? They only consider the 1st loan which is at 31%. They said the second does not constitute a mortgage because it is HELOC (equity line). However, together it would be over 39% debt to income ratio according to their calculations. According to our attorney we are at 46% DTI ratio. See, how WF plays with the numbers? If I don’t pay on the second they can foreclose. So how is it not considered a mortgage? They are just playing games with consumers, using smoking mirror techniques, and dragging the process out until I believe they think the economy turns around or the interest rates goes back up.
So, this is the latest 04-01-2010. They set us up on this Forebearance program. Three trial payments and then they will work a modification for us. Guess what the payment is? Our actual payment that we have paid from the very start. Yep, can you believe it? The same payment…not reduced or anything. Then the second line came in and cut their payment in half for the next 9 months then it will return to the same rate and interest and same payment. (This is the equity loan that is getting paid when there is ZERO equity in the house.) According to Wells Fargo, our house is only worth half of what we paid for it in 2007. This was their appraisal too. So, we are majorly upside down in our mortgage.
Wells Fargo is trying like the dickens to get me to lift the order of cease and assist so they can talk directly to me. Does anyone else feel they are being set up here? .I just emailed my attorney and asked for documentation sake do not lift it. PERIOD.
Wells Fargo is hands down the worse Bank for trying to get a modification completed and now a principal reduction. I actually become ill when I hear the commercials regarding how they care…they are all complete lies about them. Has anyone else a that they have triple their advertising? I have search hours online trying to find a success story with someone getting a mod or a principal reduction completed with them and have not found any. Why, because there isn’t any.
I wish one of these government programs and laws that they are passing would be able to go in and audit these crooks and see how they are destroying the consumers and their credit. If it was one of us consumers doing this to someone we would be committing a crime but when it is the Big Bad Banker they are not held accountable? WHY the double standard???
I read there are more and more people walking away because the banks are not willing to work with a viable working homeowner.
Soon, I am afraid I will be one of them. I will keep you posted, my forbearance will be up in June 2010, then we will see what kind of mod or reduction they work out. Trust me…I will not be holding my breath!!!
Underwater, in of all places…ARIZONA!!!
Getting the same run around from Wells Fargo only I even have a Freddie Mac. Exact same garbage. They are sending me the special forbearance papers in the mail this week. I am afraid to sign them. I am sure that Wells Fargo is bankrupt within and they are planning some hanky panky. They are not following the rules on the Making Homes Affordable. Freddie Mac has to give loan modification to me – they are bankrupt themselves and we bailed them out. But Wells Fargo is not letting the papers go through.
How can we expose them? We need more information.