I write this blog growing more frustrated by the idea of a “loan modification”.
This is based on real experience.
Three years ago my parents bought a $390,000 2BR condo in New Smyrna Beach Florida. They bought this condo in order have a place for the family to get together and enjoy the beach. They put 20% down and obtained a conservative adjustable mortgage. The current mortgage is set to adjust in two years.
Then the “real estate crisis” hit. Florida real estate takes a hit including their beach front condo.
As home owners watch their values go down a new program called the load modification is introduced. This program will help keep people in their homes. Homeowners will have to apply to their lending institution. If approved you could receive relief on your principal or the interest rate you have on your current mortgage. A program with the best of intentions.
Now my personal experience with Wells Fargo.
In the spring of 2009 I told my Dad to refinance the condo. Interest rates were in the 4.5% to 5.0% range.
One problem: The condo would not appraise. Similar units were now selling at $240,000, 37% less than our original purchase price. He would be unable to refinance.
Fear started to set in with my Dad. He is on a fixed income. Two years from now his mortgage would adjust probably higher. Take a higher interest rate, add condo assessments, and you spell disaster.
I suggested a loan modification. The process started with a phone call in late May. It is now mid September and my Dad is not one step closer to receiving help.
Maybe he asked too much. He simply wanted his adjustable rate mortgage to be converted to a fixed rate mortgage. Nothing more.
Sounds simple? Not so fast.
Here is the process:
Go to the Wells Fargo website to find information.
Call Wells Fargo because the website has no information.
Find out that I cannot help my Dad because I have not written authorization to discuss his loan.
Fax letter to Wells Fargo so I can help my Dad.
Fill out all necessary financial paperwork and send letter of hardship.
Fax information to South Carolina.
Eventually receive one of many letters stating that all paperwork is not filled out correctly.
Make numerous phone calls to Wells Fargo finding out what paperwork needs to be completed.
Find out that Mom and Dad must sign all paperwork not just Dad.
Fax all new information to Wells Fargo in South Carolina.
Receive letter stating that all information has been received.
Wait
Wait
Miss a phone call from Wells Fargo on your home phone. They will not leave a message so you do not know they called.
More paperwork stating if you are on the verge of foreclosure then Wells Fargo can help
Contact Wells Fargo and tell them he is not going to foreclose.
More letters, more missed phone calls stating information is lacking.
Calls to Congresswoman in Florida asking for help. Surprise she cannot help.
Are you seeing a trend?
As of the beginning of September my Dad received a phone call from a Wells Fargo representative in Minnesota.
Minnesota? Not Iowa? Not Texas? Not South Carolina? No a young man called my Dad (he answered the phone) from Wells Fargo in Minnesota.
Why the phone call? The representative stated that my Dad had not submitted the proper financial information.
Here we go again…..
My Dad explained all of the information they had received including all pension statements. Wells Fargo said they will now require financial updates every 30 days.
My Dad could have a response in 60 days!
WHERE IS THE HELP PART BEGIN?
AND WE WONDER WHY HOMEOWNERS ARE WALKING AWAY FROM THEIR HOMES?
Just one real estate agents opinion based on personal experience.
Check out our website: www.randywellsteam.com
