Well Fargo Signs Up for HAMP

Wells Fargo Bank has decided to sign up for the HAMP (Home Affordable Modification Program).  This is a mortgage loan modification program offered under the Abama Administration, last year.  This program is a goverment program which encourgages lenders to modify subordinate liens (2nd, 3rd trust deeds).   The idea is to make the banks work with the subordinate lien holders  to lower the payments on those subordinate liens as an overall package of lowering the payments of both the 1st and 2nd mortgages. This program is for those homeowners who took "Piggyback" mortgages when they purchase a home for little or no money down.  Example:  A home owner purchased a home and accepted a 1st and 2nd trust deed.  Now they can't refinance becouse the home is upside down and there is no equity.   Wells fargo will work with the homeowner to re-structure both the 1st and 2nd lien, that is, if they qualify for the new payment on both mortgages. 

This program will not work for everyone but may work for some.  The reason it will not work for everyone is that there are many home owners who have "interest only" mortgage loan and when the new payment calculates out to a fully indexed rate at todays prevailing rates, they will not qualify. Add on top of the new fully indexed payment the homeowners current consumer debt, insruance, food, etc., they will not qualify.

We can help you determine if you would qualify by running the calculations and determining your future present debt to income ratios.  It usually takes about 35 minutes (the average single household).

Go to: WachoviaShortSaleDepartment.com