Negotiating for a Loan Adjustment on Your Mortgage

[calvert_biker]

Hey everyone -- I'm wondering if anyone has tried (and been successful) in negotiating new loan terms with the bank that holds your mortgage. I have my mortgage with Wells Fargo, and I am planning on giving them a call and try and get them to adjust my mortgage, per the guidelines that have been laid out in the new "Making Home Affordable" legislation -- see the site here FinancialStability.gov

I'm definitely going to take a swing at this with Wells Fargo, but did want to see if anyone has any suggestions or tips on getting the bank to agree to new terms (specifically, if I can get even a slightly lower rate than the 5.75% than I'm paying now, that would be great).

I am new to my home here in Calvert, and given that home values are slipping, I may be able to "qualify" under the legislation's guidelines for LTV. Thanks in advance for any thoughts...

 

[remaxrealtor]

Please PM me if you are interested, this has nothing to do with my real estate business, Wells Fargo holds my note.

 

[somdrenter]

Hey everyone -- I'm wondering if anyone has tried (and been successful) in negotiating new loan terms with the bank that holds your mortgage. I have my mortgage with Wells Fargo, and I am planning on giving them a call and try and get them to adjust my mortgage, per the guidelines that have been laid out in the new "Making Home Affordable" legislation -- see the site here FinancialStability.gov

I'm definitely going to take a swing at this with Wells Fargo, but did want to see if anyone has any suggestions or tips on getting the bank to agree to new terms (specifically, if I can get even a slightly lower rate than the 5.75% than I'm paying now, that would be great).

I am new to my home here in Calvert, and given that home values are slipping, I may be able to "qualify" under the legislation's guidelines for LTV. Thanks in advance for any thoughts...

You're welcome.

 

[mmesser0]

at first my mortgage company said they weren't modifying any loans... so i told them ok, i'm not longer paying because i can't afford it... now since obama's plan has been laid out, they are currently waiting for the guidelines to begin modifying loans. i went to the fannie mae website to see if they owned my loan, and they replied that they do, and said i need to get in contact with my mortgage company (which i already did). they have no clue what guidelines to use right now, so they have halted all foreclosures until they receive them. according to the basic guidelines listed on the new website, we qualify. so, now it's just wait and see, basically. good luck to you!

 

[somdrenter]

at first my mortgage company said they weren't modifying any loans... so i told them ok, i'm not longer paying because i can't afford it... now since obama's plan has been laid out, they are currently waiting for the guidelines to begin modifying loans. i went to the fannie mae website to see if they owned my loan, and they replied that they do, and said i need to get in contact with my mortgage company (which i already did). they have no clue what guidelines to use right now, so they have halted all foreclosures until they receive them. according to the basic guidelines listed on the new website, we qualify. so, now it's just wait and see, basically. good luck to you!

Anything else we can do for you?

 

[Ray]

Wells Fargo holds my note and I contacted them on March 9th. I gave them my financial information and they told me I was pre-qualified for a loan modification. Thet told me that they would get back to me in 30 to 45 days. I do not know if this would be a rate reduction, a payment reduction, or a balance reduction but I am in a 6 3/4% loan that is interest only for the first 10 years than re-ammortorized to pay off during the next 20 years. I hope they can help me because I am drowning right now.

 

[calvert_biker]

Quick update...neither Fannie nor Freddie own my mortgage (of course)...out of curiosity I called Wells Fargo and actually got a really helpful representative on the phone - she told me that good old Goldman Sachs owns my mortgage. Nice. However, she also told me that does not immediately disqualify me from being eligible for participating in the program...but until the program details are released, they can't really do much for me.

She suggested that I call back as soon as the details of the program get released to the media, and then see if Wells will work with me at that point. I have a feeling qualifying for the program is somehow going to be income-based and since Obama apparently thinks that $250k/year means you shouldn't qualify for any government stimulus programs, I'm sure we'll be out of luck.

But I will keep hope alive! Yes we can!

 

[bluesmom31]

Wells Fargo holds my note and I contacted them on March 9th. I gave them my financial information and they told me I was pre-qualified for a loan modification. Thet told me that they would get back to me in 30 to 45 days. I do not know if this would be a rate reduction, a payment reduction, or a balance reduction but I am in a 6 3/4% loan that is interest only for the first 10 years than re-ammortorized to pay off during the next 20 years. I hope they can help me because I am drowning right now.

Sounds more like you are overextended.

 

[angelbaby]

Quick update...neither Fannie nor Freddie own my mortgage (of course)...out of curiosity I called Wells Fargo and actually got a really helpful representative on the phone - she told me that good old Goldman Sachs owns my mortgage. Nice. However, she also told me that does not immediately disqualify me from being eligible for participating in the program...but until the program details are released, they can't really do much for me.

She suggested that I call back as soon as the details of the program get released to the media, and then see if Wells will work with me at that point. I have a feeling qualifying for the program is somehow going to be income-based and since Obama apparently thinks that $250k/year means you shouldn't qualify for any government stimulus programs, I'm sure we'll be out of luck.

But I will keep hope alive! Yes we can!

Weren't the details released on March 4th?

 

[calvert_biker]

Weren't the details released on March 4th?

Yes, at a high level, but as we all know the government doesn't move quickly, and it is going to take another few weeks (at least) for the government to fully communicate the details to participating institutions. The "what" of the program has been released, but the "how" has not been fully answered as of yet.

I am eager to see if any of us on the forums are able to take advantage of this program.

 

[calvert_biker]

The most thorough set of FAQs available on this program can be found here: http://makinghomeaffordable.gov/docs/borrower_qa.pdf

I am about 100% convinced there's no way I can qualify, but I'm still going to give it a shot. A nuance in the program that makes me angry is on page 8 of the PDF. Basically, the Fed will pay borrowers with modified loans a "success incentive" of up to 5k over 5 years...for making mortgage payments on time!!! What about all of us that have ALWAYS made payments on time, because that's just what you're supposed to do as a responsible borrower!? Desperately trying to see how I can in any way benefit from these government programs...but yet again being responsible is biting me in the behind!

Honk If I'm Paying Your Mortgage Bumper Sticker from Zazzle.com

Frustrated....

 

[David]

Quick update...neither Fannie nor Freddie own my mortgage (of course)...out of curiosity I called Wells Fargo and actually got a really helpful representative on the phone - she told me that good old Goldman Sachs owns my mortgage. Nice.

Take this for what its worth: Apparently, in all their haste to package these mortgages and sell them as investments, "they" lost a lot of the mortgage contracts -- the one you actually signed. Unless they can produce a contract in court, they can't foreclose or sue you because, well there is no proof there is a contract. I've read that quite a few judges have been sympathetic to the borrowers in these cases.

No one suggests that you try to get a free house, although one guy apparently has. But, quite a few people in the industry suggest using it as leverage to get the lender to renegotiate the contract. At least if they renegotiate, they will actually have a contract they can hold you to. Just ask them to "produce" the contract and see what they say.

 

[calvert_biker]

Take this for what its worth: Apparently, in all their haste to package these mortgages and sell them as investments, "they" lost a lot of the mortgage contracts -- the one you actually signed. Unless they can produce a contract in court, they can't foreclose or sue you because, well there is no proof there is a contract. I've read that quite a few judges have been sympathetic to the borrowers in these cases.

No one suggests that you try to get a free house, although one guy apparently has. But, quite a few people in the industry suggest using it as leverage to get the lender to renegotiate the contract. At least if they renegotiate, they will actually have a contract they can hold you to. Just ask them to "produce" the contract and see what they say.

Good thinking - I did hear about folks that have been succesful in not paying their mortgage because the banks can't actually produce the contract...I did not, however, think about using that as leverage in a re-negotiation! Great idea, I'll put that on my list of things to try with good old Wells.

 

[kom526]

Wells Fargo here also. We just completed a re-fi from 6.375 down to 4.875 no "modification" or waiting for guidelines from Washington, just applied and settled within 30 days.

 

[somdrenter]

The most thorough set of FAQs available on this program can be found here: http://makinghomeaffordable.gov/docs/borrower_qa.pdf

I am about 100% convinced there's no way I can qualify, but I'm still going to give it a shot. A nuance in the program that makes me angry is on page 8 of the PDF. Basically, the Fed will pay borrowers with modified loans a "success incentive" of up to 5k over 5 years...for making mortgage payments on time!!! What about all of us that have ALWAYS made payments on time, because that's just what you're supposed to do as a responsible borrower!? Desperately trying to see how I can in any way benefit from these government programs...but yet again being responsible is biting me in the behind!

Honk If I'm Paying Your Mortgage Bumper Sticker from Zazzle.com

Frustrated....

Basically;

If you purchased an average priced home
Your family income is average
Loan originated on or before 1 Jan 09
LTV no more than 105%
Payments are up to date, none late in the last 12 months

You probably qualify.

 

[dmj926]

Followup Wells Fargo Question

Hello kom526,

When you refinanced with Wells Fargo. Was the 4.875% rate the rate for new customers that was published on their website? Or was there any negotiation by you or them to arrive at the 4.875%. I am speaking with them later today. The rate on their website for new mortgages is 4.75% (plus1 point). I am hoping to get my current Wells Fargo loan changed from my current 6.0% to the 4.75% while keeping my same terms and paying no points. Do you think this is possible, or will they only offer me a rate higher than the 4.75%? Any advice is welcome! Thanks!

Wells Fargo here also. We just completed a re-fi from 6.375 down to 4.875 no "modification" or waiting for guidelines from Washington, just applied and settled within 30 days.