Wells Fargo Home Mortgage Loan Modification RMA Form Application Package

Wells Fargo Loan Modification Request For Mortgage Assistance (RMA)

You will first have to submit a complete Wells Fargo Mortgage Request for Mortgage Assistance (RMA) Package if you want to apply for a loan modification with Wells Fargo. It will always be a better choice if you consult with a professional first before submitting the package. Finding the right professional is crucial as there are many professionals in the market to choose from. We are a company that help our customers in getting mortgage relief so we have put the package on our website to help you.  Click here to request a call from a loan mod pro or call 888-934-3444. 

Wells Fargo Hardship Letter

Built into their application Wells Fargo have a hardship affidavit citing your hardship,

What is a loan modification?

First, let’s go over what a modification is not. A loan modification is not like refinance. It will be when you get a new loan to pay off your old existing loan or combining loans. While completing a loan modification you cannot combine loans, such as a first and a second mortgage, . A loan modification is exactly as it sounds. We work with you to modify the terms of the loan that currently exist.

What terms can I change on my mortgage with a loan modification?

It is not possible for banking industry to think outside of the box. So there are limitations to the things you can modify on your loan and how those things can be modified.

Interest Rate Modification

People mostly request to us about changing their interest rate. It is important but it’s not the only way to adjust the payment. The mortgage servicer will push to reach affordability to it will be based on your income.

Loan Term Adjustment Mod

The life of the loan may be changed to reach affordability but it doesn’t work the same way as many times people say they are adding the payments to the back of the loan. The loan isn’t physically extended by the number of payments you miss. In many cases the loan is extended back to 30 years or even extended further out. We have seen as much as 50 years, but as 30 years is the norm, any extension beyond is generally no more than 40. Beneficiary of the note and the limitations they set completely control this.

Principal Capitalization and Principal Reduction Modification

Principal capitalization is when they take the amount you are behind on, including any past due payment, interest, and fees later adding them to the outstanding balance of what is owed. In rare cases that are generally dictated by the amount of perceived equity in the home (or lack there of) the investor on the loan may be willing to take a reduction on the principal owed

Getting Your Forms Submitted To Wells Fargo To Get The Process Going. What is in the Wells FargoLoan  Modification Package?

Usually all the lenders have the same requirements and it is not only limited to Wells Fargo. You will have to provide your financial information to you servicer such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a loan modification, and a hardship letter.

Getting The Right Value Goes A Long Way.

The lender will balance out all the options that are available to the homeowner before approving anything. Including some ways to get the valuation done online there many ways that a valuation can be done. In a type of valuation called Broker’s Price Opinion (BPO) a broker will do the valuation. Sometimes it happens that the person doing the valuation will require interior access to the home. In every type of the valuation the person will compare the properties listed currently of sold recently. They consider the homes perceived condition, the size of the living space, the size of the lot, how many stories it has and whether or not it has a pool. They will also consider market conditions and how fast homes are selling in the area. There are many factors they take into consideration.

Loan Modification Appraisal Values

The real investor for which Wells Fargo is working, will require to complete a valuation before approving any terms of loan modification.The lender will do a computer based valuation called an Automated Valuation Module.. The lender will hire a broker for Broker’s Price Opinion (BPO) due to cost preventions but thats a rare case. In even rarer cases the beneficiary will pay for a by a licensed appraiser. The homeowner may be required to pay upfront fees in some of the cases for these services.

Filing Value Disputes and Variances

Returning a value too high or too low happens quite often. This can happen to anyone whether you are a expert or a rookie does not matter, you may have to deal with a value dispute. Depending on who the investor is or if it’s insured there may be different processes for filing disputes with Wells Fargo or another managing entity.

Wells Fargo’s Net Present Value or NPV Process and Analysis.

It is up to the lender to qualify you for the loan modification or not and to forward your file or not after a valuation has been completed and it has returned. Usually there is an auditing process before the submission to management and if approved there is often another auditing process the occurs before an approval letter is issued.

Wells Fargo NPV Counters

NPV stands for Net Present Value. NPV is basically an algorithm so the lender can get the value for his money. This isn’t a stable value either. It changes from day to day. The process of looking at two separate borrowers and checking where they can make more money is known as NPV. In most of the cases the borrower is behind on his/her payment so the lender will have to decide whether to take the amount owed and increase their balance is even worth it or not. Homeowners have to know that when the numbers don’t add up for the investor that is when they are most likely to get declined.

Wells Fargo NPV Counters

countering the NPV is easy just look at the points and find the ones that don’t make sense and attack those parts. You have to look at each point and observe what would be the likely output. In most cases there are incorrect income figures but it could go beyond that to things like the property’s perceived value and even in some cases the consumers credit report.

Three Payment Plan

If you get approved for the loan modification with Wells Fargo in most of the cases you will be put on 3 month trial payment plan. You will not know what the finalized terms will be that they are offering you but the final payment should be inline with what you will be paying for the mortgage at least at the onset of the new plan.

Wells Fargo Modification Complete

There is a finalization process when the loan modification is being completed with Wells Fargo.The finalized Loan Modification documents will be sent out somewhere between second and third trial payment if you are on trial payments. They usually come with a prepaid package to return the documents to the lender. Once the documents are returned and the loan modification goes through the final audits with underwriting the master loan documents are amended to show the new terms of the loan.