Archive for the ‘California modifications’ Category

Trying for a modification? READ THIS!

Sunday, January 16th, 2011

If you are in California and if you are in a position to get a modification through Wells Fargo/Wachovia, please read the following.

Even if they do agree to work with you, they will likely start with a three-month forbearance period. A word of caution: Even when that starts, you will have to stay on top of them. They will screw up, probably by losing your paperwork. They will blame it on you and, as a result, they will try to deny a modification agreement, thus the importance of keeping copies and sending everything registered/certified.

As soon as you pay your second month forbearance payment, request a copy of the permanent modification offer; they will try to get out of it. You won’t believe it, but I’m not going to let you go into denial of how botched it all is. It is worse than you could possibly imagine. America is in fact in trouble financially and big banks such as Wells Fargo are part of the problem.

When you make your first payment of the forbearance, send a letter confirming that to Wells Fargo, along with a receipt, and copy bank regulatory agencies such as:

  • President Obama,; 1600 Pennsylvania Ave., NW, Washington, D.C. 20006
  • If you are in California: Governor Edmund G. Brown, State Capitol Building, Sacramento, CA 95814
  • Federal Trade Commission, Consumer Response, 600 Pennsylvania Ave, NW, Washington, D.C. 20580
  • Office of Thrift Supervision, 1700 G Street, NW, Washington, DC 20552
  • Your local senators 
  • Your local Better Business Bureau
  • Your local newspapers

My story: After a year of “negotiations,” Wells granted me a forbearance agreement in December 2009. I paid January/February/March and then their records and our conversations were screwed up for months.

If I did not keep accurate records I would not have my home. (That’s my binder on the right — 6 inches thick, 20 pounds, 22 pages of single space types notes indicating who said what to whom during this process.)

AFTER I started paying the forbearance agreement, it took from April 2010 to December 2010 for Wells Fargo to finalize the agreement; I have 10 pages of single-spaced notes during that period alone indicating glitches made by Wells! Excerpts from those notes follow. YOU will need to stay on top of it. The lenders have undertrained staff dealing with processes new to them that they don’t understand and don’t want to follow, and from executives who are larcenous on an international level.

I learned a new concept today from a investment research firm relating to this . . . the average American is in denial about the severity of our nation’s finances because it has never happened to us before. We just can’t believe it so we have tunnel vision.

A sample timeline starting with the 3-month forbearance period:

  • April 2010:  Meeting w/Wells Fargo to discuss modification. Five times during that meeting they said they had missing paperwork. Because of that huge binder I had with me, I was able to pull out the appropriate paperwork and give them a copy to duplicate. In addition to showing them the paperwork, I was able to supply either a receipt from Kinko’s indicating when it was FAXed and received or a copy of my FedEx receipt indicating when it was received by Wells Fargo.
  • January-March, 2010: Forbearance payments made. They did NOT offer a permanent modification.
  • April 26, 2010: Attended meetings Wells Fargo had in Oakland and brow-beat them into signing a modification agreement with me.
  • May 2010: Modification Agreement received in the mail from Wells with incorrect amounts — interesting to note tha tthe modification agreement was dated April 22, thereby predating the April 26 meeting with them.
  • June 29, 2010: No statements received reflecting new terms.
  • July 19, 2010: Notices on front door saying Wells wants to talk with me.
  • July 19, 2010: Fed Ex delivered a package from Wells with NEW blank modification agreement. I called Wells to see what is going on. Was told that my loan is an “unconverted brokerage account,” and the modification had not been approved. Bottom line is that they did not want to honor the signed agreement.
  • July 23, 2010: Letter from Wells saying I was in default, that the modification agreement they signed was not “approved” on their end. I met with two attorneys who verified that the document I have will hold up in court, so I told Wells to back off.
  • July 24, 2010: My calls/issues could only be dealt with by one person — an “executive specialist” in the Office of the President. Works for me.
  • July 29, 2010: First payment under this agreement sent w/USPS tracking system. They received in July 31, but had not applied it as of August 1.
  • August 13, 2010: They tried telling me again that the modification was “moving through settlement right now.” I again reminded them that I have a modification agreement that will hold up in court.
  • Phone calls on August 31, September 6, 13, 17 to straighten them out.
  • October 9, 2010: 10:31 a.m., Melissa Slater called. Account is in “escrow analysis.” Seems they did not account for taxes and that is why there are discrepancies in the figures. They made a mistake (another one). Account is showing $2609.65 due instead of $2567.76 due. It is also showing that the October payment is still due – it is not.
  • November 17, 2010: Still inaccurate. Executive said that 11/02 payment was not applied, she did not know why. She then said it was applied to the wrong account.
  • December 1, 2010: Mortgage statements are finally accurate.

If you are here, you may need to . If you do not want to take on yet another battle and you are in Marin County, please contact a non profit which has been working with housing, financial literacy and credit issues since 1997. If you are not in their area, consider