To Whom it May Concern,
Aprox 2 months ago we started the process of trying to modify our home loan on our primary residence. What followed was the typical exhausting task of having to hunt down updates on our own, no return phone calls, and the constant list of items need even though most had already been sent multiple times. At one point the processor did an initial review of the file, decided it was incomplete, and canceled the loan without so much as contacting us to request what it was she felt was missing. After complaining to her manager the file was reviewed and the items in question were in the file.
About 2 weeks after starting that process we applied for a loan modification on our investment property. This was with a different team and much smoother. Within a short period of time and a couple of simple communications from the processor our file was submitted and approved for modification.
We assumed this meant our primary home would be approved as well but we were wrong. We were denied because our current payment was only 18% of our gross income and the new payment would be less then 10% of our gross income and it was determined our current payment was affordable. We were told it was an investor guideline and that Wells Fargo could do nothing about it.
So we contacted Freddie Mac…they informed us that as the servicer of our loan Wells Fargo had complete authority to approve the loan.
We find this confusing and disheartening since the loan that was approved was clearly a much lower % of our gross income then the loan that was denied. So this lead to a new series of questions…. What was different.
The modification was approved for the investment property and the LTV on that property is upside down.
The modification on our home was denied and that home has more then $100k equity….. This leads us to believe our investment property was approved because Wells Fargo would lose money on the foreclosure and that our primary was denied because Wells Fargo could make a substantial profit on the foreclosure.
After a few phone calls we spoke to a Wells Fargo loan modification specialist who informed us that it is not uncommon for modifications where the property has 20% or more equity to be denied. This is not within the spirit or intention of the loan modification or home preservation act.
We would like out modification on our primary residence to be reviewed…our home…the place where we raise our family to be reviewed and explained why it was denied while an investment property was approved.
Thank you
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