Wells Fargo Loan Modification Reentry Team

Borrowers who are doing the loan modification song and dance to delay their foreclosure proceedings now have a real hurdle placed in the road for them by Wells Fargo with the rolling out of their Wells Fargo Loan Modification Reentry Team. Servicers are taking action to prevent the cycle of countless loan modification attempts and to further streamline their system. Wells Fargo loan modification reentry team has been implemented and this team will be the one who decides if a loan modification review will be reopen or if it will be closed out per their guidelines.They will particularly be looking to see if a loan modification has officially been denied in the past and if so does a change in circumstance justify for a new loan modification review to be open. Mortgage servicers will be looking to get homeowners at least one final decision on their loan modification in quicker time frames so they can show that they did provide a borrower with a full review. This would decrease certain liabilities on the servicers end if executed properly.

What Is Considered A Change In Circumstance?

If a borrower is denied for a loan modification for low income they likely need to show a 15-20% increase in income to show a change in circumstance. If a borrower is denied for high income they likely need to show 15-20% decease in income to be let back into a modification. If a change in circumstance is not showed, a modification review won’t be reopen. This causes challenges for borrowers who get denied for a loan modification and then have a sale date set around the corner. We have seen many borrowers sink with the ship by not taking alternative action to resolve their mortgage crisis at hand.

For any questions regarding a loan modification or a short sale please fill out the form below for a free consultation.