Wells Fargo Loan Modification Overview

If you are behind on Your Wells Fargo Mortgage, you might think that foreclosure is your only alternative. That may not be the case. Have you considered the possibility of a Wells Fargo Loan Modification?

President Obama has signed a stimulus bill that allocates 75 billion dollars in assistance to homeowners adversely affected by the downturn in the United States economy. Millions of people will receive help, and maybe you could qualify.

Wells Fargo is on the Treasury Department's Approved Lender List. These lenders receive financial incentives to provide reworked loans to people who have mortgages backed by Freddie Mac or Fannie Mae. These loans must be on a primary residence; you must live there.

A Loan Modification provides a qualified borrower with a lower monthly mortgage payment by utilizing one or all of these means: lowered interest rates, lengthened loan term, waiver of late fees, and forgiveness of part of the principal. The goal is to allow the homeowner to have a payment plus insurance, taxes, and association dues that is less than 31% of their gross monthly income. Hopefully, this will allow the homeowners to avoid a foreclosure and stay in their home!

A few of the application guidelines are:

· The original home loan was written on or before January 1, 2009
· The amount can not be more than $ 729,750.
· The current payment must be over 31% of the gross monthly income.
· A documented case of financial hardship has claimed fulfilling the mortgage obligation to the lender.
· A budget must show how the new payment will allow dependable payment of the monthly house payment. This, too, must be documented with all appropriate paperwork.

Of course, Wells Fargo needs to be convinced that you are committed to repayment of this new modified loan.

Source by Scott A. Kennedy

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