Mortgage Mod help!

[kai_1103]

I have a close friend who is trying to modify his mortgage with Wells Fargo.  Anyone have any hints?  He is just getting the run-around.  He was told to send more info and that he would then be approved for a modification, then when he called back to check on them, the people acted like they never received anything...  Then was told it was over 30 days so they needed to start over completely.  Typical of course.  But what now?  He is paying the mortgage still, did everything they have said.  Anyone know a backdoor number or a special question to ask?

Thanks all!!

[Lel]

Lenders are overwhelmed with modification requests.  Your friend's story is not unusual.

Why is he trying to get a modification?  What are the changes in financial circumstances that necessitate a loan modification - loss of income, ARM reset?  Is refinancing an option?

Make sure that he doesn't get suckered by some so-called loan modification company, that offers to assist with the modification for a fee.  The vast majority are ineffective, if not outright fraudulent.  Also, don't let anyone convince him that he should intentionally skip payments to try to force WF to modify his loan.  They already have to deal with tens of thousands of customers who can't make their payments, so intentionally going late won't make him stick out from the crowd.  He could end up with an unmodified loan, late payments on his credit report, credit card limits slashed, and a low credit score.

Since he is still able to pay his mortgage for now, that will buy him some time.  He'll need to be pretty aggressive (but polite) in following up on his application.

[kai_1103]

Thanks for the help!  He works in the real estate industry and his income has been hit hard.  Plus the value has droped to make him upside down.  So I don't think refi is an option.

I will warn not to skip a payment.  He got a second job, etc. to make ends meet but eventually savings will be drained and then game over.  I will encourage him to be more agressive!

[Lel]

If he has to miss payments in order to pay for the necessities of life - food, medications, health insurance - then he'll have to go late.  Don't let him run up credit card debt in order to stay current on his payments.  This would just worsen his situation.

When he calls WF, he needs to have all his financial stuff in order.  When considering modification requests, the analysts typically look at every aspect of a person's financial life.  Car payments, car insurance, life insurance, health insurance, groceries, utilities, student loan payments, property taxes, homeowners insurance, alimony, child support, credit card payments - everything.  Anything that he writes a check for each month may need to be accounted for.  He has to be ready to provide this information on a moment's notice, because you never know when he might get ahold of an analyst who is able to handle his application on the spot.

He shouldn't inflate his expenses to make his situation more desperate than it really is.  People have had their modifications rejected for reporting too great of a monthly budget deficit.

It would be a good idea for him to demonstrate that he's already taken strides to make his lifestyle more affordable.  For example, if he has a $200 digital cable bill that includes an NFL and NHL package, that's not going to curry a lot of favor.

[IOBA]

To add to the great advice, have your friend send in the paperwork, CMRR.  

Then he will know, and be able to tell them, when it was received by the bank.   Faxing it in might also work.