The two programs planned under Well Fargo loan modification have different eligibility requirements. The program based on the interruption of the foreclosure process and the proposal of a new payment plan excludes from the start those who are facing bankruptcy. The same goes for foreclosed properties that are only one month away from being sold and for loans that were not taken on residential properties.
The second loan modification plan proposed by Wells Fargo focuses on helping subprime mortgages that have an adjustable mortgage rate. In order to qualify for this plan, the loan should have been taken somewhere between the start of 2005 and 2007. Another eligibility criterion refers to the scheduling period of the loan for the readjustment of the introductory interest rate. Borrowers are also required to prove their income, as well as to add a letter of financial hardship to their application. It is a known fact that a complete application increases ones' chances of loan modification approval.
Applications are easily rejected if the borrower has no idea how to calculate the debt ratio or if the financial hardship letter is not convincing. Filling in the requested financial statements is mandatory, improper completion being an important reason for rejection of the application. However, once accepted, borrowers can forget about about adjustable rate loans and they can successfully prevent the foreclosure process from happening.
The sooner one starts the loan modification process, the better. There are various sources which list the eligibility criteria and the paperwork that has to be completed. Before submitting the loan modification application, it is important that every aspect has been carefully considered and understood. The bank will decide if one qualifies for the loan modification program, taking into consideration the debt ratio in the first place. This is followed by the completion of the financial statement, borrowers being finally given the chance to escape a loan that was difficult to afford.
If you are tired of payments you can not afford, then it might be for the best to give Wells Fargo loan modification a chance. Not only will you benefit from lower monthly payments, but also from a whole set of advantages that you will gradually discover. No more adjustable rates for your mortgage, no more foreclosure just waiting to happen. The loan modification program will be exactly the thing you need to regain your financial stability and escape your debt!