It is not uncommon to have Wells Fargo deny a request for modification. What's important is how you react right away when you get the news. If you're correctly prepared and spring into action you may be able to turn that denial into an approval very fast. I have broken this down into what I feel are the 3 most important things to know if your Wells Fargo loan modification is denied.
Know what program you were denied for - Wells Fargo has many different loan modification programs they offer. Each program has its own guidelines and just because you were denied for the first option does not mean your numbers may not be perfect for another. Ask them what program you were denied for and ask why. The representative should give clues as to a specific reason for your denial and provide valuable insight on your next approach.
Do not give up on Making Home Affordable (HAMP) - Most of the time this program will be your best option to reduce your mortgage payments and likely will be the first option Wells Fargo will try to qualify your loan for. If at first they deny your loan for Making Home Affordable (HAMP) you will have a short window to update your financial statement to fit within HAMP guidelines. This should be done within the first seven to ten days of receiving word that the modification has been denied to avoid having the review closed. If they close the review you may need to start at the back of the line with all new updated documents, so prompt action can certainly save a lot of time and frustration
Follow Up - This is by far the most important step to success with GMAC. You should be calling for status updates at least once a week, twice a week is better and sometimes necessary at certain stages of the loan modification process. With every call you should confirm the total past due balance, where in the foreclosure process the loan is, and if any documents are being requested. You can't expect to make incredible progress with every call but its necessary to avoid getting lost in the mix of thousands of GMAC loans in the modification process with you.
Some of the most shocking loan modifications have come from GMAC Mortgage loans lately. Just like most major lenders they are swamped with loan modification requests and forced to follow strict guidelines only based on your household financials. Don't let the GMAC guidelines become a cause of frustration, try to use them to your advantage and you just might end up saving a lot of money on your mortgage payments.
Know what program you were denied for - Wells Fargo has many different loan modification programs they offer. Each program has its own guidelines and just because you were denied for the first option does not mean your numbers may not be perfect for another. Ask them what program you were denied for and ask why. The representative should give clues as to a specific reason for your denial and provide valuable insight on your next approach.
Do not give up on Making Home Affordable (HAMP) - Most of the time this program will be your best option to reduce your mortgage payments and likely will be the first option Wells Fargo will try to qualify your loan for. If at first they deny your loan for Making Home Affordable (HAMP) you will have a short window to update your financial statement to fit within HAMP guidelines. This should be done within the first seven to ten days of receiving word that the modification has been denied to avoid having the review closed. If they close the review you may need to start at the back of the line with all new updated documents, so prompt action can certainly save a lot of time and frustration
Follow Up - This is by far the most important step to success with GMAC. You should be calling for status updates at least once a week, twice a week is better and sometimes necessary at certain stages of the loan modification process. With every call you should confirm the total past due balance, where in the foreclosure process the loan is, and if any documents are being requested. You can't expect to make incredible progress with every call but its necessary to avoid getting lost in the mix of thousands of GMAC loans in the modification process with you.
Some of the most shocking loan modifications have come from GMAC Mortgage loans lately. Just like most major lenders they are swamped with loan modification requests and forced to follow strict guidelines only based on your household financials. Don't let the GMAC guidelines become a cause of frustration, try to use them to your advantage and you just might end up saving a lot of money on your mortgage payments.
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