Upside Down Mortgage

Posts Tagged ‘bank’

Loan Modification From Wells Fargo

Question: Do Home Loan modifications really work?

I have my home loan threw Wells Fargo and have had my loan for 3 years I have never been late and now I am having money problems. My work is slowing down and I am looking into a part time job. I missed a housepayment and I called the lender, they mentioned somthing about a Home Loan Modification where they can crunch numbers and my payment be lower is that for sure or are they stringing me along. Has anyone been threw this and how many payments do you have to miss untill you can qualify for this? I have to call her later, she wasnt to clear about it. Some advice would be nice.Would it be better to refinanace. I am at a 6.2% interest rate. with a 600 credit score. Advice anyone?

Answer: Wells Fargo is one of the best banks to work with.

They might give you an adjustable for around 5% for 3-4 years. You need to weight the options, but since your problem is only temporary you might ask for a forbearance instead. With a forbearance they let you not pay for 2-3 months so you can get situated and put the money on the tail end of the loan.

Since you have a really good loan already I am not sure that a modification or a refinance would help you all that much.

how to countrywide loan modification wells fargo modificati

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Mortgage Modification Bank Of America

Question: Recourse against Bank of America?

I have been working with Bank of America since the beginning of June regarding a mortgage modification. Last month one of the representative told me that I could make a reduced monthly payment based on the modifcation payment if I called that payment in at the due date. I did this. Now I log onto my account and it tells me I am past due. I called BofA and now am being told that the money is in unapplied funds just sitting there and I need to pay the remaining balance or it will show up as a late payment on my credit report!! The rep I talked to today sees notes of the previous conversation saying I could pay the reduced amount...but "that is not correct". "Sorry there is nothing I can do." I don't have the money to pay by that date as I used it for other bills. It will now cause an endless cyle of late pays on my credit report if I can't come up with the extra money. What recourse do I have against Bank of America for their error?

Answer: When I don't get the answer I want from a B of A representative, I ask to speak to their supervisor. If I don't get the response I desire from them, I write a letter.

B of A will stick it to you every chance they get so you'll have to be persistent.

Mortgage Modification-Too many options not enough solutions

Loan Modification Jp Morgan Chase

Hope and optimism emanating from the announcement of the Obama Administration’s “Making Home Affordable” plan have been replaced by the cold reality that the program has gotten off to start deemed by industry watchers as “anemic”. After almost four months since President Obama first announced the $75 billion mortgage rescue effort, the administration continues to tweak the program in an attempt to reach its originally stated objective of saving up to 5 million homeowners from foreclosure. Standing between the anemic start and lofty goals of the program are four roadblocks:

1) Overloaded loan modification processors – While the specifics of the plan were released in the first week of March, lenders couldn’t start handling applications until systems were re-programmed and processors were brought up to speed, which took an additional four to six weeks. Processors were immediately buried with stacks of applications that had been accumulating during the conversion to the new guidelines. Participants in the process report that servicers are still digging out from the initial rush as applications continue to flood their desks. Troubled borrowers, many backed up against the possibility of foreclosure, have become increasingly frustrated to the point where they have abandoned the process to retain their own legal assistance.  JP Morgan Chase spokesman Tom Kelly recently said of the ramp-up, "It's an enormous task. We're moving quickly, although not as quickly as an individual might wish."

2) Investors – The massive sums of money that supported the real estate/mortgage boom came from investors on Wall Street, pensions, and other institutions. Servicers say those investors are now balking at some of the terms being presented when a loan needs to be modified. The net present value test, a little known aspect of the plan, allows for a calculation to determine whether the greater return for investors will be achieved via modification or foreclosure. In the modification versus foreclosure decision, investors have been threatening lawsuits against servicers when the servicers are deemed to not be acting in the best interests of their investors. The threatened legal action adds another layer to the home loan modification process and can draw out the approval process even more. The “safe harbor” bill recently passed by Congress was intended to alleviate that logjam by protecting servicers from investor lawsuits but it’s likely that lawsuits will arrive on the servicers doorsteps anyway, safe harbor or not.

3) Lenders – Lenders are caught in a three sided bind between the above mentioned borrowers/investors and their own capital structure. No longer required to mark their loans to market, they can carry the value of the loans in their own portfolios at values they can rationalize, whether factual or not. Loan modifications could generate reviews of portfolio values, and nobody wants to go there in the current environment.

4) Unemployment - According to John Taylor, head of the National Community Reinvestment Coalition, "Unemployment is becoming a bigger factor than almost anything." When sub-prime mortgages started blowing up it was attributed to the risks inherent in lending to lower quality borrowers. Increasing unemployment, in addition to taking down the lower quality borrowers, is now hitting prime mortgages. In fact, primes are now going into default at a much faster rate than sub-primes as previously solid borrowers are now being affected by the contracting economy.

Of the four roadblocks, the toughest barrier is unemployment due to the fact that, regardless of credit scores, if a homeowner doesn’t have a job a loan modification isn’t going to help. Short sales, cash for keys, or foreclosure become the next options. At that point every side of the three sided bind ends up on the losing end.

About the Author:

The Feldman Law Center is one of California’s top mortgage loan modification companies, providing excellent service to our clients and is completely focused on keeping everyone one of our clients in their homes. Visit us at feldmanlawcenter.com or call 800-527-8497. Loan Modification Company.

Source - Feldman Law Center - The Four Road Blocks That are Slowing Loan Modifications

JP Morgan Chase at Foreclosure Roundtable