Confused about whether you can qualify for a Wells Fargo loan modification to lower your mortgage payment? Homeowners facing financial difficulties may apply for a loan workout to lower their monthly loan payment to help them to stay in their home. However, each applicant must complete a loan modification package that will be reviewed for eligibility by the lender. One of the most important qualifications is called debt ratio-this is a percentage figure that Wells Fargo deems acceptable when calculating your new modified mortgage payment. Learn what this figure is and how to calculate your own debt ratio to make sure you have a chance at loan modification approval.
A Wells Fargo loan modification can use a number of options to achieve a new mortgage payment that is affordable and meets the banks guidelines for approval. This new modified payment is targeted to equal 38% of the homeowners gross monthly income. This new lower payment can be accomplished by one or more of the following options:
1. Longer loan term up to 40 years
2. Reduction in interest rate
3. Principal forbearance whereby a portion of the current loan balance is deferred interest free
4. In rare instances, principal forgiveness
To help struggling borrowers apply for a Wells Fargo loan modification, the lender has increased its full-time home retention staff by 125% to almost 6,000 employees. The bank plans to continue adding staff as the demand warrants. These employees are trained to work with financial troubled borrowers to find a solution that is most appropriate to their circumstances.
Interested borrowers are encouraged to take the time to learn about how to meet the requirements for a Wells Fargo loan modification before contacting the bank. Homeowners can pre-qualify themselves by learning how to calculate their own debt ratio, how to arrive at a target modified mortgage payment and how to complete the required loan modification forms properly. Borrowers who submit a complete, accurate and acceptable package to the bank will have a better chance of getting the results the need and deserve.
You can get the help you need to understand how to qualify for a Wells Fargo loan modification by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.
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