Wells Fargo mortgage aid procedures |
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Partial claim/claim advance.
For some customers who have loans insured by HUD or a private mortgage
insurance company, a partial claim or claim advance may also be
an option. In this situation, HUD or the mortgage insurer would
advance funds to reinstate all or part of the past-due payments
and the customer would sign a note to HUD or the mortgage insurer
for the amount of the advance. The note can sometimes be secured
by a subordinate lien on the home. The borrower would resume regular
payments on the loan and is responsible for payment of the note
to the insurer. Oftentimes, repayment of the note isn't required
until the time that the mortgage is paid off, thus not increasing
the borrower's monthly mortgage payment.
Short sale. A short sale can be considered for borrowers who wish to sell their home. The proceeds of the sale are used to pay
off the mortgage. Any amounts still remaining due on the loan may be waived. This option is generally available when market conditions place
the home's value at an amount less than the total amount owed and resulting sale proceeds are short of total amount owed to pay off the
mortgage obligation.
Deed-in-lieu. A deed-in-lieu is an option that allows the borrower to voluntarily transfer the property back to the investor
rather than foreclosing on the property. This is based on investor approval and determined based on the reason for hardship. In some cases,
a borrower may be required to contribute funds to facilitate this transaction. It may also be required that the borrower list the property
on the market at fair market value to attempt to liquidate the property prior to acceptance of a deed-in-lieu.
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These options are also discussed on our Web site.
Do you accept partial payments?
Unless the customer has a partial payment agreement in place with our loss mitigation department, we cannot accept partial payments.
Without a prior arrangement, if a partial payment is received, the funds are deposited in a holding account known as suspense. The funds
will remain in the suspense account and the loan is not credited until additional funds are received to make the full mortgage payment.
What percentage of people can expect to get some type of workout of their mortgage?
We will be able to help most customers, but not all. For example, if the loan they have with our company is sold to investors, we look for
solutions that align with the customer's financial circumstances while respecting the contract requirements that we have with investors.
Customers should continue to stay in touch with us to see if new solutions become available that might work for their
situation. As our economy and interest rates continue to change, solutions may be available today that were not available a month ago.
Does the process differ depending on whether you are a homeowner who is missing a regular payment or
a homeowner whose mortgage is about to reset?
No. Borrowers only need to make sure they contact the correct Wells Fargo customer service team.
- Wells Fargo Home Mortgage Customer Service: (800) 678-7986
- Wells Fargo Home Mortgage ARM Reset Help: (866) 398-7556
Is it helpful if they contact a credit counselor who can work with you on the process?
This depends on the borrower's financial situation. Sometimes, counselors are able to work with the customer's other creditors to resolve
some of those debts, making it easier to deal with the mortgage debt.
Are there fees associated with a workout option?
Generally, there is no fee associated with a particular workout option, but this can vary based on individual investors. Fees that may
already exist on the loan -- for example, attorney fees for a foreclosure -- must be dealt with in some fashion through that particular
workout option.
How did it go? Tell us about your experience using
this information to work out a solution with your lender.
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