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Are you eligible for Wells Fargo Loan Modification?
The two programs planned under Well Fargo loan modification have different eligibility requirements. The program based on the interruption of the foreclosure process and the proposal of a new payment plan excludes from the start those who are facing bankruptcy. The same goes for foreclosed properties that are only one month away from being sold and for loans that were not taken on residential properties.
The second loan modification plan proposed by Wells Fargo focuses on helping subprime mortgages that have an adjustable mortgage rate. In order to qualify for this plan, the loan should have been taken somewhere between the start of 2005 and 2007. Another eligibility criterion refers to the scheduling period of the loan for the readjustment of the introductory interest rate. Borrowers are also required to prove their income, as well as to add a letter of financial hardship to their application. It is a known fact that a complete application increases ones’ chances of loan modification approval.
Applications are easily rejected if the borrower has no idea how to calculate the debt ratio or if the financial hardship letter is not convincing. Filling in the requested financial statements is mandatory, improper completion being an important reason for rejection of the application. However, once accepted, borrowers can forget all about adjustable rate loans and they can successfully prevent the foreclosure process from happening.
The sooner one starts the loan modification process, the better. There are various sources which list the eligibility criteria and the paperwork that has to be completed. Before submitting the loan modification application, it is important that every aspect has been carefully considered and understood. The bank will decide if one qualifies for the loan modification program, taking into consideration the debt ratio in the first place. This is followed by the completion of the financial statement, borrowers being finally given the chance to escape a loan that was difficult to afford.
If you are tired of payments you cannot afford, then it might be for the best to give Wells Fargo loan modification a chance. Not only will you benefit from lower monthly payments, but also from a whole set of advantages that you will gradually discover. No more adjustable rates for your mortgage, no more foreclosure just waiting to happen. The loan modification program will be exactly the thing you need to regain your financial stability and escape your debt!
Foreclosures Remain the Main Concern for Homeowners
Since the collapse of the housing industry almost two years ago, foreclosures have remained the number one concern for all homeowners in the U.S. who have a mortgage. Rising debt, pay cuts and an uncertain job market have put immense pressure on all families trying to meet their monthly mortgage requirements.
With millions of families already losing their homes, homeowners have been trying everything to avoid foreclosure. Although President Obama has announced his mortgage stimulus plan to aid struggling homeowners on March 4th of this year, it has done little to stop the rising foreclosures across the country. The Obama administration has even announced a new plan for families with second mortgages and it remains to be seen whether these new measures will help homeowners save their houses.
Families who are finding it tough to pay their mortgages on time must try to get their loans modified immediately to try and stop the lenders from filing a foreclosure notice. A loan modification will allow the banks to give the homeowner either a new monthly payment plan or a revised interest rate which will help them meet the mortgage requirements until their situation improves. Most homeowners feel that if they are having difficulties in their payments or have taken pay cuts in their jobs, they do not qualify for a loan modification and hence avoid applying for one.
However the fact remains that if a homeowner is experiencing a difficult time, it actually increases their chances of getting the loan modification application approved as banks can see a genuine hardship on their part. Homeowners can decide to apply for a loan modification on their own or choose to enlist the help of a qualified consultant in the field. It is always better to apply via a loan modification consultant as they will be in a much better position to negotiate with the bank on your behalf. Although it will save you a lot of time since you wont have to constantly follow up with your lender and chase them down to know the outcome of your application, you also improve your chances on getting the best modification for your situation.
If you do choose go to with a consultant, just make sure that you do not agree to pay any kind of upfront fees. Unfortunately since there are millions of homeowners in distress right now, it has given rise to many fly-by-night companies who take money from homeowners and disappear without actually applying or even calling the bank for a loan modification application. Another problem with paying money upfront is that since there is no guarantee whether your application will get approved. Thus, you are losing a lot of money immediately which could have been used to meet your household expenses.
The ideal situation for a homeowner would be to contact a loan modification consultant who will charge their fees only once the loan modification application is actually approved by the bank. This means you are not losing any money in the event your application is rejected. At the same time, your chances of approval go up as the consultant would be able to negotiate with your lenders and make sure you get the best possible new mortgage plan based on your current situation.