Stop Foreclosure Answer

I continue to be amazed at the stories I hear about the work Wells Fargo has been doing on loan modifications.  This one really angered me.  It was in an article in the New York Times at the beginning of September.

In a post on this blog several weeks ago I reported on the trial loan modifications offered by Wells Fargo in the Making Home Affordable Modification Program through August.  Thus far they have only offered these on 9.2% of the loans it is estimated Wells Fargo has on which the foreclosure process has started.  Executives from the company indicated that they were pleased with the efforts they were making.  Yet by any normal person’s standards, 9.2% is not only a total failure; most would say that they are not even trying to do anything.

The information that came out in a Bankruptcy case in Arizona about how Wells Fargo is processing requests for loan modifications just confirms how poorly they are doing.  This was reported by the New York Times.

The Woman’s Story

A woman filed for bankruptcy in Arizona.  She had lost her job in 2008 and has not worked since then.  She also was in the process of divorcing her husband and he is no longer willing to make her mortgage payments.  With her mounting debt she had no alternative but to file for bankruptcy.

Her last payment on her mortgage to Wells Fargo was in November of 2008.  She filed an application for a loan modification under the Making Home Affordable Modification Program in March.   After that she sent Wells Fargo financial information they said they needed to process her application three different times.  Each time she called following up on it, she was told to send the information again.

When the date for the hearing on her Bankruptcy came, she still had no answer from Wells Fargo on the loan modification.  The judge on the case said that he and other bankruptcy judges around the country were hearing about how slowly Wells Fargo was acting on the applications for loan modifications.  So he summoned a senior executive from Wells Fargo to testify at this woman’s bankruptcy case.  Let me tell you – Summoning a senior executive from a national mortgage company to appear at a bankruptcy case is unheard of but this was how desperate the judge was.

The Testimony of the Senior Executive From Wells Fargo

The senior executive from Wells Fargo was initially questioned by the company’s attorneys.  He testified that the lady repeatedly failed to provide a financial worksheet which was necessary in analyzing her request for a loan modification.  This was their main defense and under cross examination it fell apart.  From her files the lady produced a letter from Well Fargo indicating the documentation she needed to submit as part of the request for the loan modification.  The senior executive was asked to read it out loud.  Nowhere in that letter was a financial worksheet requested.  The senior executive further revealed that shortly after receiving her application for a loan modification back in March Wells Fargo decided that she did not qualify for a loan modification.  Let me repeat that.

In March Wells Determined She Didn’t Qualify for a Loan Modification

 Yet they never notified her.  No one outside of the company was aware of this until the day the senior executive testified.  The senior executive went on to testify that this was not an isolated case.  There are others whose applications for loan modifications have been denied.  Wells Fargo has not had the courtesy to tell them.  He did add that his company was pledging to improve their communications with the people who have applied for loan modifications.  The senior executive also indicated that they would look at this woman’s case again to see if she qualifies to have her loan modified.

Can You Believe That?

 Shortly after she applied in March, Wells Fargo reviewed her file.  They determined that she did not qualify for a loan modification.  Yet they never told her.  Every time she called, they said they needed more information.  They never told her over the phone or in writing that she was denied.  This didn’t come out until that day in court.  How long would they have continued to withhold this information from her?  How many other people are in this same predicament?  The senior executive from Wells Fargo said that the company was going to improve communications.  How soon will this happen?  Can Wells Fargo be believed?

What Do You Do?

 If you have a mortgage with Wells Fargo and have requested a loan modification, do not believe anything they tell you verbally.  Ask for everything in writing.  Even then they may not be truthful with you.  They may have made a decision to deny your application some time ago yet just have never told you.  If they did deny your application is the denial correct?  You don’t know what they based the denial on or whether their judgment was flawed.

If you don’t have a lawyer or an expert in loan modifications representing you, consult with one immediately.  It does not look like anyone can try to deal with Wells Fargo on their own.  All they are doing is wasting time and risking an incorrect denial.  Also learn as much as you can about the foreclosure process and what you can do to save your home from foreclosure.  My EBook has much information which will help you.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins