If you can’t afford your current mortgage due to a financial hardship, and you want to stay in your home , we may be able to change certain terms of the loan — such as the interest rate or the time allowed for repayment — to make your payments more affordable. Any change to the original terms is called a loan modification.
There are multiple loan modification programs available, including the federal government’s Home Affordable Modification Program. These programs offer different options for borrowers in different situations, but all are meant to help people keep their homes when facing a significant hardship. We’ll work with you to determine whether a loan modification or another solution may work for you.
How a loan modification could help
- You avoid a foreclosure sale. Even if one is already scheduled, we may be able to postpone it while we review your information.
- You make lower payments. Your modified payment amount is based on your current financial situation and takes your hardship into account.
- It may be less damaging to your credit score than a foreclosure sale.
- A loan modification changes your loan permanently, so it may not be an option if you’re facing a temporary hardship.
- If you have a home equity loan or any other liens on the property, they may need to be addressed separately from your first mortgage. Make sure you contact any other lien-holders to find out what options you may have.
When you’re ready to get started, here’s how the process will work:
Call 1-800-678-7986 or submit an online request to start the conversation. Your home preservation specialist will talk with you about your situation, and let you know what options might be available.
If you’re ready to move forward, we’ll send you a package with all the forms and documents you need to complete your request for assistance. Make sure you get started on these right away — we can’t begin processing your request until we have all the required documentation. Use our mortgage assistance document checklist to see what you may need to provide.
After you send your documents, we’ll review them and let you know if anything is missing. Once we have everything we need, we’ll go through all of your information to see what programs you might qualify for.
During the review, we’ll try to determine whether you have enough income to support your current monthly payment amount. We may also verify your lien position and other factors like tax and insurance obligation.
Depending on your financial situation and other factors, we may consider a number of methods for modifying your loan to reduce the payment amount, including:
If our review confirms that you qualify for a loan modification, your home preservation specialist will contact you to set up a trial period plan.
Approximate timing for this step: 30 days
If a foreclosure sale has already been scheduled, we’ll attempt to postpone it while we review your information.
Before we modify your loan, you may need to complete a trial period. Your home preservation specialist will send you a package explaining how the trial period plan works, and asking you to notify us if you agree to it.
During the trial period, your monthly payments will be similar to the amount you would pay with a loan modification. We won’t calculate the actual payment amount for the modified loan until near the end of the trial period.
Your home preservation specialist will monitor your account during the trial period to make sure your payments are on time.
Approximate timing for this step: 90 – 120 days, depending on your particular modification program.
The payment amount during your trial period will be different from the amount shown on your mortgage statement. Check your trial period documents carefully and make sure you pay the right amount.
If you successfully complete the trial period plan, we’ll finalize your modification agreement and send you copies to sign and return. When you return the signed modification agreement within the required timeframe, we’ll process the modification and send you a finalized copy.
At this point your modification will take effect and your mortgage will be brought current.
Approximate timing for this step: 45 days
Contact a Home Preservation Specialist at 1-800-678-7986
Start the process by filling out an online request:
Already working with us on a loan modification?
Wells Fargo Bank, N.A. is required by the Fair Debt Collection Practices Act to inform you that if your loan is currently delinquent or in default, as your loan servicer, we will be attempting to collect a debt and any information obtained will be used for that purpose. However if you have received a discharge, and the loan was not reaffirmed in the bankruptcy case, we will only exercise our right as against the property and are not attempting any act to collect the discharge debt from you personally.