Overall, compared to other large lenders, Wells Fargo is reasonable to deal with when it comes to loan modification. As long as you are persistent in following up with them regularly and work with the right person, your chance of getting the mortgage modified is very high.
However, it is not common that Wells Fargo will reduce the principal if your mortgage is upside down. They will usually enter you into a three to five month trial period where they reduce your monthly payment based on your monthly income and expense. During the trial period, it is imperative that you make the reduced payment on time on the first day of each month. Your payment is not considered received even if it is made within the grace period.
After you complete the trial period, Wells Fargo will evaluate your case. There is no guarantee that they will grant you a loan modification even if you have followed the payment arrangement during the trial period. If your loan modification is rejected, you can contact executive office to escalate your case. But be prepared to submit your financial statements again.
If your modification application is approved, you will receive a loan modification approval letter and documents for the new terms. It is likely the bank extends your mortgage to a longer term like 40 years. It is not necessary that they reduce the interest rate, as long as they think the reduced payment is good enough to help you.
Once you have signed and returned the loan modification documents, do not believe you are done. It is still possible that the documents will not be processed by the bank to finish the final settlement. That means the bank's system does not reflect your new mortgage terms.
You will still need to call the bank not just once but a few times to make sure they "settle" your loan modification and all the terms you've agreed have reflected in their lending system. It is simply too common for the bank's mortgage department to be disconnected from its loss mitigation who made the decision on modifying your loan.
However, it is not common that Wells Fargo will reduce the principal if your mortgage is upside down. They will usually enter you into a three to five month trial period where they reduce your monthly payment based on your monthly income and expense. During the trial period, it is imperative that you make the reduced payment on time on the first day of each month. Your payment is not considered received even if it is made within the grace period.
After you complete the trial period, Wells Fargo will evaluate your case. There is no guarantee that they will grant you a loan modification even if you have followed the payment arrangement during the trial period. If your loan modification is rejected, you can contact executive office to escalate your case. But be prepared to submit your financial statements again.
If your modification application is approved, you will receive a loan modification approval letter and documents for the new terms. It is likely the bank extends your mortgage to a longer term like 40 years. It is not necessary that they reduce the interest rate, as long as they think the reduced payment is good enough to help you.
Once you have signed and returned the loan modification documents, do not believe you are done. It is still possible that the documents will not be processed by the bank to finish the final settlement. That means the bank's system does not reflect your new mortgage terms.
You will still need to call the bank not just once but a few times to make sure they "settle" your loan modification and all the terms you've agreed have reflected in their lending system. It is simply too common for the bank's mortgage department to be disconnected from its loss mitigation who made the decision on modifying your loan.
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