A Wells Fargo loan modification is a great option for homeowners who do not qualify for the traditional FHA or VA program. These programs are designed to provide assistance to homeowners, but do not have all of the benefits that a Wells Fargo loan modification does. In addition to providing additional loan relief through lower monthly payments and interest rates, a Wells Fargo loan modification can also help the homeowner to retain their home. The modifications that the company will offer can save the homeowner thousands of dollars on their mortgage and reduce their risk of losing their house.
A Wells Fargo loan modification can be applied for through either the traditional lender or by a third-party mortgage company. The homeowner may choose to apply directly to Wells Fargo to get their loan modification. This third-party approach allows a homeowner to apply to multiple lenders at one time, reducing the paperwork required. There are even some loan modifications offered by Wells Fargo that will allow a borrower to apply for both a federal loan modification and a refinancing of the original mortgage. Depending on the circumstances of a homeowner, they may find the savings and benefits of a loan workout to outweigh the costs and risks of applying directly to Wells Fargo.
In most cases, a Wells Fargo loan modification will involve their borrower modifying the existing loan, rather than requesting a new loan. This ensures that the borrowers do not end up with two individual loans. Many homeowners are unsure of whether or not their current lender will approve their loan modifications. Because applying directly to Wells Fargo allows a homeowner to apply for both modified loans, it has often been referred to as the 'wells Fargo plus' or 'Wells Fargo modified loan'.
As part of the loan modification process, a homeowner is required to complete an application that details their financial situation. The lender will evaluate this application to determine if the homeowner will be able to make the modified payment plans. In most cases, borrowers will receive a letter of approval from Wells Fargo after the application has been submitted. It will usually take about two weeks for the Wells Fargo loan modification specialist to review the homeowner's application. Once the homeowner receives their approval, they can begin the process of modifying their home mortgage.
If a homeowner has not received a letter of approval from Wells Fargo, they can still pursue a modified loan through other lenders. While many borrowers mistakenly believe that all lenders offer modified loans, they are not necessarily inaccurate. There are a number of lenders who have their own loan modification programs. In addition, some homeowners who have applied and received a loan modification from Wells Fargo, but were declined can still pursue the lender's program. To find out more, homeowners should contact their lender directly. They will be able to tell them more about their options.
Because a Wells Fargo pre-approved loan is good for up to five years, homeowners may find themselves in a better financial position than they originally were before applying for a modified loan. This . . . . . . is because the additional time to pay on the new loan will allow the homeowners to save money by reducing their monthly payments. Furthermore, homeowners may be able to negotiate a lower interest rate. If a homeowner does not qualify for a Wells Fargo loan modification, there are other programs available to help prevent foreclosure.