will our lender start foreclosure if we are in the midst of trying to obtain loan modification?
November 26th, 2011 | 
Author: Question by Allen: will our lender start foreclosure if we are in the midst of trying to obtain loan modification?
we have our mortgage in Illinois with Wells Fargo. We can no longer make the mortgage payment and called Wells Fargo who is mailing a loan modification pkg. to us. Meantime, we will not be able to make the payment. We do not want to face foreclosure. Will Wells Fargo begin foreclosure if we are making a concerted effort to get a loan modification with them? This is very troublesome to us. we want Wells Fargo to work with us, but what happens if they refuse us? Do we have other options or will they offer other options to us? Please help.
Best answer:
Answer by Arbor Mortgage
Truly, only Wells Fargo can answer this question. Part of the problem with the big banks is that none of their departments talk to each other. Even though you are trying for a loan mod, the department that initiates foreclosures won’t know that and will likely move forward if it’s reached that point. The most important thing you can do at this point is constant communication with them. Call them and let them know you can’t make the payment and you are working on a loan mod, have them note your file in the computer system. This may or may not help. When they call you or send you letter, DO NOT ignore them. Always take their calls and respond to their correspondence, even if it’s just to tell them you don’t have the money and remind them of your loan mod application. Keeping constant touch with them will help.
How far behind are you now? Is this the first payment your are missing? If it’s the first payment, I wouldn’t worry too much about foreclosure proceedings yet, but if you are greater than 90 days behind, then you should definitely be more aggressive with your contact.
Best of luck with your modification application!
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Wells Fargo is telling you you can’t make payment anymore? or you can no longer afford to continue paying until your loan is modified with affordable terms and amounts? I’m just want to verify that with you.
As for your question, I agree with the previous response, lender’s departments don’t communicate with each other so even when your file is under review, the foreclosure process is still happening.
Here’s my recommendation. Visit http://www.HUD.gov to locate a local non-profit org that can give you guidance going through this modification process. When you’re at HUD website, click on Mortgage Crisis icon, that’s to start. and please remember, SERVICES ARE FREE!
Just let them know you need help with your file, you’ve basically initiated a loan modification request with Wells and waiting for the package, but you have some questions. Now, the organization won’t be able to guarantee if you’ll get an approval or not, but at least you’ll get a better chance to talk one-on-one with someone who knows more about Wells’s process.
You’ll basically still have to do the follow up with Wells yourself, just to check in on the status of your file until you get a negotiator. I suggest do it once a week. Each time you call, DOES NOT matter what the person in customer service/collection say, ask for loss mitigation department, then ask what’s the status, if you have a negotiator already. You’ll get more guidance, just visit HUD.
Hello, I am Peggy Whitney from Texas in US, I saw your question on how you need loan,I got mine from standard loan firm a month ago with monthly repayment schedule and interest rate of 4% no credit check no cosigner if you know you can pay back as at when due then I will advise you to contact them they can help you here is the email standard_loanfirm@live.com
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