| If you have a home mortgage serviced by Wells | | | | principal may be reduced. |
| Fargo and you are facing financial difficulties you may | | | | Wells Fargo has expanded its home retention |
| be eligible for a plan to lower your monthly payment. | | | | department by 125% to almost 6.000 full-time |
| Homeowners in your situation may apply for a loan | | | | employees in order to help see their borrowers |
| modification, also known as a loan workout program. | | | | through this crisis. They plan to continue hiring as |
| But how do you know if you qualify? You will fill out an | | | | warranted by demand. The home retention |
| application for the loan modification and submit it to | | | | representatives are there to work with you to |
| Wells Fargo to review for eligibility. Your debt ratio is a | | | | negotiate a solution that will work both for you and for |
| very important qualification. This is a ratio that Wells | | | | Wells Fargo. |
| Fargo finds by comparing your income with your debt, | | | | But before you contact Wells Fargo, take the time to |
| and it must be low enough to show that you are not | | | | learn how to meet their requirements for a loan |
| able to afford your mortgage payments now, but high | | | | modification and gather all of the information you will |
| enough to show that you will be able to manage your | | | | need. If you understand how to calculate debt ratio, |
| new, lower payments after the loan modification. Find | | | | and you know that Wells Fargo has a threshold of |
| out how to calculate this, so you can be sure your | | | | 38%, you can find an appropriate, agreeable target |
| application will be approved. | | | | modified monthly payment. This will help you to fill out |
| The debt-ratio threshold that you must be above now, | | | | your forms and submit an acceptable loan modification |
| but below after a Wells Fargo loan modification is 38%. | | | | package that is much more likely to be approved so |
| This means that your monthly payment must be more | | | | that you can get the financial relief you need. |
| than 38% of your gross monthly income now, but less | | | | Because of the increase in number of American's who |
| after your loan modification. There are several ways | | | | are applying for loan modifications it is important that |
| that your loan modification can bring your mortgage | | | | you do not waste your contact at Wells Fargo's time. |
| payment down to the point where your debt ratio will | | | | To get your case considered quickly and increase |
| be acceptable and you will be able to manage your | | | | your chances of receiving a successful loan |
| payments going forward. They include:a. Increasing the | | | | modification you must have all documents prepared |
| length of your loanb. Reducing your interest rate.c. | | | | and be armed with the knowledge of how the system |
| Forbearing payment and deferring interest on part of | | | | works. |
| your principal.d. In some exceptional cases, your | | | | |