Wells Fargo Denial
Hi Chris. We received a denial letter from Wells Fargo last week and right now our house is scheduled for a February 4th sale.
But the reason given in the form denial letter references a monthly expense number that we have never turned in. In reviewing my phone records, it looks like they have not been paying attention to any of my expense revisions that I have turned in the last few weeks.
A few weeks ago, they started including a “medical expense” of $566.25 in our budget and we have no idea where it came from. I requested, in writing on 12/21 to know where this came from and they never responded.
We have had several significant reductions to our expenses that I faxed them back in December, and they did not include those revisons in their decision either.
In my most recent letter to them, I requested several specifics including 1: a copy of the worksheet used to deny our request, 2: a list of the loan modifications they have considered us for (internal, HAMP, etc.), 3: An explanation of why our loan was not modified for specific “waterfall” examples we know should work for us (ie a reduction to 2.25% at 30 years,) and finally 4: the name of the investors on our loan.
On the blog, you referenced a Fannie Mae guidline that requires lenders to give homeowners the numbers used in a denial decison and give them 30 days to review those numbers for accuracy. I read the document, but it was not clear if it would apply to Wells Fargo. Especially if they have never officially considered us for HAMP, but rather just their internal modifications.
I had one rep tell me yesterday that once they input our worksheets into the system, they just get shredded. So how can they review everything for accuracy?
Because their last decision was based on incorrect information, we think we have a pretty good shot at having them delay our sale date and put us back into active review again. But they want me to fax everything into them again before they make that decision. We feel that because they clearly made some errors, they should delay the sale anyway, but we will do what they ask.
Right now, we are submitting everything again on our own. We have considered using a HUD approved counselor to help, but I actually had one in Rancho look at the packet we submitted and tell me I was doing everyting she would have done. Maybe there are better ones, I know you like Jesse in Riverside.
Since the sale date is so close, we are also considering NACA, but I don’t know what success they have had with Wells Fargo.
My questions are, with the sale date so close, what do you recommend as our best course of action? Does Wells Fargo have to respond to our questions and what do we do if they don’t? Should they be giving us 30 days to review their numbers, or does that not apply to them?
Thank You Chris