Wells Fargo Loan Modification And Obama’s Making Home Affordable Plan
President Obama’s new Making Home Affordable Plan makes getting a Wells Fargo loan modification easier for many struggling homeowners. The federal government loan program offers financial incentives to lenders like Wells Fargo, to offer loan modifications to their borrowers. In fact, Wells Fargo has recently increased their home retention staff to meet the demands of an increased need for loan modifications. A loan modification results in lower monthly payments, making it easier for homeowners suffering a financial hardship to meet their monthly payments and save their homes from foreclosure.
What if you have already applied or been turned down for a Wells Fargo loan modification? Even if you have previously applied, you can still apply under the federal Making Home Affordable Plan. You just need to become familiar with the eligibility requirements and make sure to fill out a complete and accurate loan application package.
A Wells Fargo loan modification may involve a reduction in the interest rate you are paying on your loan, having your loan term extended for up to 40 years, or having part of your principal balance deferred. These loan modification options may be available to you and result in a new loan payment that is 31% of your monthly gross income. Under the Obama Making Home Affordable Plan, you do not need to negotiate a loan modification agreement. Everyone is given the same options, as long as you qualify. However, you still do need to submit an accurate and complete loan modification application.
There are also representatives available to help you through the Housing and Urban Development Department (HUD). The counselors will help explain the program but do not help you with completing your Wells Fargo loan modification application. So you will still need to take the time to become familiar with Wells Fargo’s loan modification application requirements and the loan modification process in general to ensure that your application is filled out properly to give yourself the best chance of having Wells Fargo approve your loan modification request.
If you are interested in applying for a Wells Fargo loan modification, you will need to be prepared to write an effective hardship letter, stating clearly and concisely what your financial hardship is that is making it difficult to make your current monthly mortgage payments. You will also need to be able to provide proof of your income and expenses as well as fill out all the forms in the Wells Fargo loan modification application in an accurate and complete manner. Taking time to learn about the loan modification process and submitting an accurate, complete and persuasive loan modification application will greatly increase your chances of your Wells Fargo loan modification being approved.
