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How To Get A Wells Fargo Loan Modification Approved

wells fargo loan modificationMany homeowners in the U.S.  simply could no longer continue to pay their mortgage with Wells Fargo.  Many of these homeowners tried to get a home modification to reduce their monthly payments.  Others chose to do nothing at all and just let their homes fall into foreclosure.

The problem is quite prevalent today in America.  Several lenders and servicers are in the midst of lawsuits for alleged predatory practices.   The stories are almost identical from one lender and servicer to the next.  Allegedly, lenders and servicers purposely made the modification process appear to be working for homeowners.  Even going so far as to telling them their applications were fine and that there was nothing to worry about.  Never telling the homeowner how the loan modification really works.  This has not been the case with Wells Fargo (as far as we know), they seem to really help homeowners in need if you follow the right steps.

In fact, I personally know people who have had a really easy time getting Wells Fargo to modify their loans.  They did their research, prepared their documents the right way and were accepted into the Wells Fargo mortgage modification program without any problems at all.

One person I know must have had lady luck on his side, because he not only received one Wells modification, but TWO!  After losing even more income during the initial home modification, he applied and was granted a second modification.  The second modification actually brought down his principal balance over the course of three years.  It was the first time I had ever heard of such a program and I applaud Wells Fargo for offering it out.  The homeowner was EXTREMELY happy, he told me “Lucas, I just got the best loan modification anyone has ever seen”.  I don’t know if this is an isolated case, or Wells is actively pushing principal reductions, but lets keep our fingers crossed that they keep this up.

I know there are many storied out there about Wells mishandling loan modifications and foreclosing on homeowners during the process.  The bulk of the stories I have heard from real people though, are positive in regards to Wells Fargo.  Every lender has bad publicity regarding loan modifications, usually stemming from a lack of qualified employees to handle the mass influx of applicants.

If you are in need of a Wells Fargo home loan modification, here are the steps you need to take.

Be prepared before you call. Their representatives are already prepared to ask you a long line of questions before you actually sign any paperwork.  If you give the wrong answers on the phone, even by mistake you’re chances of getting a Wells Fargo loan modification is over!  So you’ll need to be thoroughly prepared.

Sit down and figure out income, debt, expenses and asset amounts.  The numbers have to make sense otherwise you won’t be approved.  They will also want to know the nature of your financial hardship.  Is it due to unemployment? Are you carrying too much debt? Divorce? Out of pocket medical bills?   The point of the hardship letter  is to show Wells Fargo why you are unable to pay your current monthly mortgage payments.  Just telling them you have a financial hardship is not enough.  You’re going to have to prove it with documentation.  Word to the wise, don’t make any financial claims you cannot prove!  They will double check figures on your credit report.

You’ll need to come up with a budget.  This is the part that gets to be a real deal breaker. What no one tells you before you apply is that your income level has to be within a certain range.  You must fit into the guidelines.  See wells fargothis post on how to prepare your financial statements for more info.  Too much income or too little will get your application denied.  If you are unsure if your income will qualify, there are other steps you can take to be sure before you make the call.  More on that later.

If you’re confident you have everything together and in order…it’s time to make that phone call.  It’s ok to be nervous, that’s normal.  If you’ve created a sound budget, have financial hardship that is acceptable and all of the numbers add up as they should.  Just tell the rep you need to see if you qualify for a mortgage modification and they will ask you a series of questions.  If you qualify, you should be sent a Wells Fargo loss mitigation package that includes a financial worksheet you will fill out using the budget you previously completed.

After getting your package you’ll need to follow instructions very, very closely,  You’ll also need to make sure you send in every single piece of documentation you are asked for. These include recent pay stubs, tax returns, debt statements, mortgage payment information, miscellaneous income, assets.  If you haven’t written a hardship letter, you’ll have to put in writing the same information you told the representative in your initial phone conversation. Try to keep it to one page.

Previously we mentioned how you can find out if your income level will qualify for a loan mod.  It can be as complicated as you are probably thinking it is.  With all of the poor execution and abuse going on with servicers and home modifications, you may want to have someone in your corner to manage the process for you. Someone who knows how to deal with lenders and servicers on their turf.  A loan modification company can step in and handle the process on your behalf right from the start.  By the way, the income level issue,  loan modification experts can help you with that as well.

Your mortgage modification with Wells Fargo doesn’t have to be a nightmare.  If you have tried to do it on your own and were denied, maybe you should let a professional service help with the process and give you a fighting chance to keep your home.

Finally, if you aren’t going to save money with a mod you shouldn’t waste time trying to get one!  Sometimes, an adjustment to your loan will raise your payment.  To get an estimate of what your monthly payment would be, just use our free loan modification calculator on the right of this page.   If that payment will help you make your monthly mortgage payments, then go for it!


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