How to get a loan modification from America’s servicing company
Loan modifications are an important tool that consumers can use to avoid foreclosure and make their mortgage payments affordable. Unfortunately, the process is not simple and requires a lot of diligence on the part of the homeowner. Many consumers approach America’s Servicing Company seeking loan modifications, but don’t really understand the process. There is a process which can show consumers how to get a loan modification from America’s Servicing Company. America’s Servicing Company is a division of Wells Fargo Home Mortgage. It services other lender’s loans.
Loan modification eligibility
For a consumer to be eligible for a loan modification they have to demonstrate need. This can be done in a number of different ways. One of the ways to demonstrate need is for the consumer to be behind on their mortgage payments. In addition, another way to qualify is to demonstrate a hardship. A hardship can be defined in several ways including the loss of a job, a family crisis such as a divorce, a severe medical issue, or a significant negative change in one’s financial position. Homeowners who have a high interest rate or an adjustable rate mortgage will typically qualify for the program.
In order to qualify for a loan modification from America’s Servicing Company, a consumer can not be in bankruptcy, either Chapter 7 or Chapter 13. The consumer must be willing to keep the house once the rates and payments have been reduced. In order to be able to pay the new payments the consumer must have a stable source of income, preferably a job.
Another way to qualify for the program is to be upside down on your mortgage. This means that the consumer owes more than the property is worth. In this situation the borrower will need to have the loan modified with a principal reduction.
Fast track loan modification program
Once a consumer is confident that they can demonstrate need, they need to begin the loan modification process. Some experts have recommended that the fastest way to obtain a loan modification is to hire an attorney who specializes in these matters to handle the process for the consumer. In addition there are a number of companies who specialize in assisting consumers with loan modifications that may be able to help. If a consumer chooses to do it on their own, they need to be organized and willing to be very diligent. It is also important for the consumer to create some sort of record keeping system for this process.
The first step in the loan modification process is to write a hardship letter. This letter will be the consumer’s official request to America’s Servicing Company for a loan modification. It must be in writing and cannot be done over the phone. The goal of the hardship letter is to convince America’s Servicing Company to allow the consumer to apply for a loan modification. It has to be sincere and truthful while demonstrating a compelling need.
The hardship letter has to tell America’s Servicing Company not only that you are facing a financial hardship but what the nature of that hardship is. It has to state what type of financial stress exists and why the individual feel behind on the payments (if this has occurred).
Once they have received the hardship letter they can send the consumer a detailed set of documents. In order to complete these documents the consumer will need their most recent mortgage statement, the last two year’s tax returns and W2s, the last four months of bank statements and a statement of the consumers income and expenses. When completing the form, all questions must be answered accurately and completely. The consumer will need to completely fill out the application form and attach these documents to it, then mail it in.
There are software packages available to consumers that helps them complete the financial statement so that they meet the federal guidelines. If a consumer doesn’t want to purchase this, they should research the guidelines so that they meet them. In addition it is the consumer’s responsibility to demonstrate that they can pay the modified payments, so it is important to make sure that the financial statements reflect this.
Once America’s Servicing Company has received the package it can take them thirty days or more to respond. The consumer should not just wait during this time period. An individual needs to follow up to make sure that America’s Servicing Company received the paperwork and documents and make sure that is being appropriately acted upon.
It is important for the consumer to remember that America’s Service Company is not the actual bank. It may take several phone calls to identify someone who has access to all of the information necessary to complete the process. It is important to continue contacting them until someone like this becomes involved.
The best successes seem to have come from dealing with the ART department. It is recommended that the consumer continue to contact America’s Servicing Company until they reach this department. The individual who has the ability to successfully assist the consumer is the Work Director. It is important the the consumer continue to follow up during the entire process to assure that all questions are answered and that the process continues moving forward.
Once America’s Servicing Company has completed the review process, they will make an offer to the consumer regarding lower interest rates, principal modification or other relevant issues. The first offer may not be particularly appealing to the consumer. At this point the consumer needs to evaluate the offer to make sure that it will resolve the issues. Common offers include a temporary interest rate reduction and extending the length of the loan to lower the monthly payments. One offer that is typically not in the consumer’s best interest is a forbearance agreement, which takes all the past due amounts and adds them to current payments which will actually increases the consumer’s monthly payments.
At this point, if the consumer does not feel the modification will help them, the consumer needs to contact America’s Service Company and begin negotiating with them. The consumer needs to be calm yet determined to continue the negotiations until an achievable modification is approved. There are no guarantees that this process will be successful, but continue communication and negotiation will improve the likelihood of success.
There is no magic formula which determines how to get a loan modification from America’s Servicing Company. It is a long process, which can only be simplified by attention to detail, ongoing follow up and determination. However, many consumers have had success and the process can significantly improve their financial situation.