Any luck getting a 4-plex mod. thru ASC (Wells Fargo)..

I just want to know how many of you get a loan mod. thru ASC (Wells Fargo) with your 4 plex? At this time I tried to contact them and they said they were going to send me some financial sheet and etc. to fill out to see if I qualify for a loan mod. I waited and waited and didn't see anything from them except receiving a letter that my mortgage is in delinquent.

I have a adj. rate mortgage. My husband and I didn't know, we thought we had a 30-fixed rate until last year of Nov. 07' they wrote a letter saying our rate is going to change. It makes me upset because the loan officer (middle man) didn't share with us. Last Year I found out the same Loan Officer did the same thing to my Pastor and his wife. They were so mad when they found out that their home was not fixed. so they refi. again. That was two years ago for my pastor.

My husband and I can't refi. because the 4-plex have no value. We have another investment property which is a 5-plex (commercial) and last some banks advice us to pull some equity from our 5-plex to refi our 4-plex. We thought it was a dumb idea because if we do, everything is going to collapse.

Now I don't want them to say the same thing. Let me know if some of you have any luck getting your investment property modify thru ASC?

Edited: 06/26/2010 at 06:31AM

Jake Kucheck

Residential Real Estate Agent · Newport Beach, California

Pro Basic

722 posts
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Dec 02 '08, 07:32 PM

What do your loan docs say? If they say 30 year fixed, that is straight up fraud, and I would imagine a modification would be fairly easy to obtain, regardless of the lender.

If they say adjustable... then you're kind of in the same boat as everyone else looking for a loan mod, although you do have the advantage of being delinquent. From people "in the biz" that I've talked to, ASC is pretty much fair game. The only lender I've heard is just flat out saying no to any mods is Wachovia because there in the process of being taken over. Anyone else hear this?

Edited: 06/26/2010 at 06:31AM

Erik Miller

Real Estate Investor · Reisterstown, MD

17 posts
1 award
50 influence

Jan 29 '09, 03:46 AM

I own a loan mod company..do what we do..use a lawyer..I can give you a few if you would like feel free to email me [REMOVED]

Edited: 06/26/2010 at 07:06AM by Moderator : email removed, use signature or profile

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Greg X

Loss Mitigation Specialist · Mesa, Arizona

27 posts
50 influence

Mar 19 '09, 08:45 PM

Nearly half the people I talk to don't remember signing up for the mortgage they accepted. Everyone who has an interest only ARM was told the same thing -- "just take it now and refinance in 2 years to a better fixed rate loan." Of course 2 years later you're house value has tanked and you're stuck with that ticking time bomb of a mortgage. Countrywide was especially good at convincing people to do the interest only loans as loan to build up your credit score.

You can modify investment property just as you can your primary residence. You must be upside down significantly, can show financial hardship (why you haven't been able to make payments recently or why you won't be able to make them in the near future), you must want to stay in the home (okay, an investment property not so much), and if the payment can be made affordable, you can make that payment.

Affordable is the least expensive option the lender can offer you. And that must be cheaper than foreclosure (NPV basis) or they will not offer a mod. Determining what an affordable payment is requires a little more effort as there is no standard to determine that. You may check your income and expenses and see how much you spend each month than take in. That might be a fair example of what the payment might have to be reduced (some add $200 to that figure) to make it affordable. Some lenders will use a debt to income ratio, say 36% - 38% of your gross income is the limit of what your payment should be.

Hope this helps.

Edited: 06/26/2010 at 07:38AM