Loan mod offer from Wells Fargo during Ch 7

[calgirl67]

We attended the Wells Fargo Home Preservation workshop in Oakland on Tuesday. Our appointment was at 1.30pm, got shuffled thru to one girl, then another who scanned our docs, then a long wait to see a Loss Mit negotiator from the BK Dept (we're in Ch 7).

This is apparently the best they can do. Quite a let down. Citigroup is our investor. She claims:

*investor (Citigroup) won't extend or change the term out to 40 yrs, will have to keep it at 30.
* want to change it from 6.25% 10 yr int.only to 4.00% 30 yr fixed (26 yrs left on loan) and change it from IO to PITI.
OUR PAYMENT GOES UP $160 A MONTH TO $3780!!We can't afford $3620 Interest, taxes insurance as it is. This is ZERO help.

She also went on to say they want $$ up front as a "down payment". Also wants us to pay their "legal fees" because of our BK. They can sure whistle for that! I don't think so. Also refused to put the escrow shortage ($12,000) onto the principal.

I asked about HAMP and she said "I'm not sure if this investor is participating in HAMP". She said she will go back to her office and check on it.

So it seems they are still playing hardball and refusing to stem the tide of foreclosures hitting California. Well I guess the investor must really want our totally upside down house back with ZERO recourse after our mortgage discharges in our BK. We are now over $200,000 underwater on this money pit.

When she send me a written offer I will turn it down and just wait until we come out of BK (July) and see if they change their tune then. Their "offer" was all WRONG and we will not be taking them up on it.

Feel sort of bummed as we drove 2 hrs there, was there for over 3 hrs and got a crappy "offer".

Short sale here we come. I'm going to stretch it out as long as I can and save $$.

[SMinGA]

Going from IO to 4% fixed rate is probably a good deal, unless lenders start actually doing 'cramdowns' and I don't know that such a thing will really happen.

What would 31% of your gross income be? (That is the HAMP process, as I understand it, to make your mortgage 31% of gross.) If you can't handle that, then letting the house go is probably the only option.

[calgirl67]

31% of our gross income would be $2650 PITI . The offer they gave us was at about 45%. Wayyyy too much.

Yes it looks like we'll be letting it go. We'll let them serve us a NOD after we discharge from our Ch 7, then I'll put in another mod application, wait a few mths for that to be denied again, then short sale list it with a high price and a bunch or not-very-nice disclosures.

I hope to save up our down payment we originally put down,or a large chunk of it.

All this started when they escrowed our mortgage account without notice and made our payment jump up over $1100 a month.

Then they put us in a HAMP trial in Oct '09, took our 3 payments then denied us (still can't get an answer WHY). By then we were behind after the trial period and they would not take partial payments, they only wanted the lump sum $8000 up front.

I like to remind myself our mortgage was current, had never missed a payment, until they told us we qualified for HAMP.

[davephx]

Wells is famous for making up false reasons for denial etc.

They are instead trying to get you into their inhouse mod with the upfront payment - never required under HAMP

CitiMortgage is one of the best at doing mods both HAMP and inhouse per the Treasury reports. I would try and contact Citi and be sure they are denying. I bet you Wells is lying to you as they have with many. Their "your investor does not participate in HAMP" line is well known as usually a lie on many sites.

Citi is one of the most supportive of HAMP with their CEO clearly in favor before all the Congressional hearings etc. They most definitely have a HAMP agreement and do many HAMPs.

They make far more money as servicer doing a foreclosure sale vs the servicer incentive for modifying.

ABC 12 news in Phoenix has exposed Wells many times (and others) for not giving honest answers etc until they get involved and than puff they may get approved with media attention.

Also you can often get better answers using Contact the Homeowner’s HOPE™ Hotline: (888) 995-HOPE. They will do conference calls to the servicer and try to get to the truth. But they have been lied to also and they are the official HAMP HUD referral.

[calgirl67]

I called the HOPE Hotline 3 times over the past few months and all 3 people I spoke to refused to call WF for me, refused to do a conference call, the best answer I could get was "call them yourself and see what is going on".

What a complete joke and waste of taxpayers money.

[calgirl67]

UPDATE: Since attending the WF Home Preservation Workshop in Oakland 10 days ago, we have not heard a single thing from the "negotiator" we met with, nobody has called us, we have received nothing in the mail. We have called her 3 times and left messages on her voicemail.

NADA... what a joke. She was supposed to call us and finalize their "offer".

I am so sick of this BS.