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Wells Fargo Loan Modification Explained

Being accepted for the Wells Fargo loan modification depends, to a great extent, on your existing budget. You will have to make some adjustments, determining the target payment and setting up clear goals.

The next step, one of the most important ones, is to complete the necessary forms of the loan modification, demonstrating to the bank that you are prepared to accept the new terms and that you have already adjusted your budget in order to meet monthly payments. Completing the loan modification paperwork without any errors will be a point in your favor, increasing your chances of approval.

Keep in mind that you are not the only one applying for a loan modification at Wells Fargo. They probably have to deal with hundreds of applications every day, and may be tired of applications that are not complete or accurate. Don’t decrease your chances of acceptance by submitting a loan modification form that is incomplete; give the lending institution all the documents requested in the first place and you won’t have anything to worry about.

If this is the first time you are considering applying for a loan modification, then it might be in your own interest to do a little bit of research first. You can find an online application guide and discover everything there is to know about Wells Fargo. These guides are extremely useful when it comes to completing the application, calculating the debt owed and even writing the hardship letter, in which you explain the reasons for needing a loan modification.

Wells Fargo has come up with the proposal of loan modification because they want to reduce the number of foreclosures on the market, thus helping delinquent borrowers remain in their homes. There is one loan modification program from Wells Fargo that actually interrupts the foreclosure actions for a period of one month, allowing the borrower to find a solution that works in everyone’s favor. Several types of loans will be excluded from the start, including the ones that are already in bankruptcy and those that were taken on empty properties.

The second type of Wells Fargo loan modification concerns loans with adjustable rates, proposing a period of five years in which the introductory rate is not taken into consideration. There are a number of eligibility criteria that one has to meet as well, presented in detail on the Internet. One example is that loans should have been taken between 2005 and the first half of 2007. Find out more from the World Wide Web and see if you qualify!

How to Get A Bank of American Mortgage Loan Modification

Bank of America mortgage loan modification is one of the harder loan modification programs to find information on. Their requirements are tightly sealed to anyone not legitimately requesting a loan modification. But despite that, there are things you (or any homeowner under any lender) should do in order to make your loan modification application debate-proof.

Do call their loan modification or loss mitigation departments and ask what their requirements for loan modification are. There is no information on Bank of American mortgage loan modification requirements on-line, so making that phone call is a crucial step. If you’re too far out of the requirements, applying would most likely end up as a bunch of wasted time and a headache.

You need to write a hardship letter to send in along with your application, but before that work out a new budget to supplement the lower payments you are requesting. Working out the new budget will give you a good perspective on things later on if your mortgage loan application is approved.

It’s also good to do the budget as one of the first steps because you can use it to boost up the effectiveness of your hardship letter. The hardship letter portion of the application is your chance to explain your situation and to formally request the modification.

You need to be as clear as possible while still going details over your financial hardship and stating the rate you feel would be ideal. Also in the letter include your willingness to work with the lender and mention your plans or prospects coming in the future that will positively affect your ability to pay your mortgage.

Be sure not to lie on a single thing in either your application itself or the hardship letter. Like with any lender, Bank of America has a zero tolerance policy on false information. Be sure to double – even triple – check your application papers and letter to make sure there is no information that could be seen as false or misleading. You don’t want to go through all that trouble only to have your mortgage loan modification application denied for an unexplained reason.

The last thing is: Try to submit all of your papers in at the same time. Giving all of your application forms and the letter to Bank of America all at once will speed up the approval process – meaning you will get the modification sooner as long as you are qualified. Bank of American mortgage loan modification isn’t difficult to receive, though you do need to put some real effort into it.