Posted by Calnotary on 9/10/10 12:19pm
Msg #352173

Wells Fargo Loan Modification Agreements...

I have seen that all these LMA have the "Payment begins on" date is way past like 4 or 5 months. Last week the payment begins date showed 4-1-10 Borrowers signed anyways since it was a very attractive rate and terms.

I did a few and all of them have that. I called the title and they don't know and to call the lender, lender is impossible to talk to, they have you back in forward and put on hold for so long and at the end they just hung up the line.

Anybody have seen this lately?

Thanks.

Reply by Linda_H/FL on 9/10/10 12:25pm
Msg #352174

Possible the "Payment begins on.." date is the

new payment date? Not first payment date? Perhaps they have to continue under the old payment system until the "Payment begins on..." date arrives?

And just a note..as to this:

"I called the title and they don't know and to call the lender, lender is impossible to talk to, they have you back in forward and put on hold for so long and at the end they just hung up the line."

I can see asking title why - for your own clarification and education....but I wouldn't call lender about it...way beyond your scope of authority - why would you call lender about borrowers' mod agreement? Just call title for your questions...no?

MHO

Reply by Calnotary on 9/10/10 12:28pm
Msg #352175

Re: Possible the "Payment begins on.." date is the

No Linda, when I called title they told me to call the lender for more specific answers. But lender is impossible to reach, and once you reach a live person they put you on hold and then they disconnect the call.

Reply by Linda_H/FL on 9/10/10 12:33pm
Msg #352176

Wow...title pawned you off on them? Good Company!!

that's their job....and yes - Wells Fargo IS impossible to speak with - even when you do get someone they don't know and you spend more time on hold than getting answers (experience from my own loan, not signings)...

Reply by CopperheadVA on 9/10/10 1:11pm
Msg #352179

Re: Possible the "Payment begins on.." date is the

OMG Calnotary I had one of these last Friday evening! It was a disaster!

Upon my confirmation call, borrowers said they wanted to see the mod ahead of time. I had it in my email days before but I wasn't about to forward to the borrowers on my own. I told borrowers it would have to come from the title company or lender. So I show up on Friday night and the borrowers tell me that Wells Fargo refused to send them a preview copy, and also that Wells Fargo told them that "the notary will bring all the paperwork and explain everything to you." Umm, I don't think so.

So I call title. Title says they are basically acting as a signing service in this instance and they do not explain anything about the Wells Fargo mods - that all questions MUST be answered by Wells Fargo. Except Calnotary you are SO RIGHT that you cannot get a hold of Wells Fargo!!!! Borrowers called Wells Fargo and got the run around. After being at borrower's home waaaaay longer than I should have been, I decided it was time for me to leave.

I felt so badly for the borrowers. They needed this loan mod but of course they didn't want to sign without understanding it in detail. It looked like the terms started back in March 2010 - it was a five page mod with varying interest rates. There was also another "settlement sheet" they had to sign. I left a copy with the borrowers and they took it to their attorney and then called me back a few days afterward and said they were ready to sign. I made sure I got a second work order to go back out. Glad they eventually got the answers they needed, but Wells Fargo should have provided them in the first place.

And Calnotary, my borrowers *got disconnected* several times too! They were not dumb people - they said they felt that they were getting hung up on.

Reply by roxierox/TX on 9/11/10 6:24am
Msg #352289

Re: Possible the "Payment begins on.." date is the

I have worked in the mortgage business for many years. I was a workout negtotiator for two years and I am a long-time signing agent. I can tell you that each lender has their own way of modifying loans. There are several types of loan modifications and they are based on the loan type and the investor guidelines. The look of the mod docs vary between lenders. For example, Citi Bank and Bank of America mod docs look totally different from each other.

Also, the first modified payment date depends on how many months of delinquent payments are being capitalized into the unpaid principle balance, the required up front funds, and anything that has been negotiated with the investor on the homeowner's behalf, etc. It is not unusual for that date to be a few months from the due date of the docs.

Our job as a signing agent is to authenticate the signer, make sure that they sign and initial in the correct places and notarize the pages that need to be notarized. We really should not spend a lot of our time trying to interpret the docs.

If the signer has a question regarding their mod docs, they should contact their negotiator. I am trying to understand why a title company would be involved with a loan modification?

Reply by CopperheadVA on 9/11/10 9:59am
Msg #352297

Re: Possible the "Payment begins on.." date is the

Roxanne, thanks for posting that!

Not sure if you read my post about my recent Wells Fargo mod signing experience but I felt kind of like a doofus for not being able to explain their mod to them. The mod seemed somewhat complicated to me and since it said that their interest on $XXX,XXX dollars (not the entire amount of the indebtedness) was being deferred (not forgiven) until the end of the loan, they specifically wanted to know if there would be a balloon payment, which I would think there would be, but I could not figure out from the paperwork whether there was one or not. I did not feel comfortable interpreting the document and so I did not. This one was not a matter of it is like with the Note, where you simply point out their loan terms. And of course I was being paid a smaller fee because this was not a loan package - yet I was there 40 minutes trying to help these people get the answers they were looking for. My understanding when I took the job was that I was to bring the mod, they borrowers would be ready to sign, I would secure their signatures, and ship docs back. This one did not require notarization.

The title company involved in my Wells Fargo mod is a national TC that I do loan signings for all the time. They told me that they will not answer any questions about the Wells Fargo mods, they do not expect the notary to explain the mod, and in this instance they are acting only as a signing service for Wells Fargo since they (the TC) have an extensive database of notaries.

Again, thanks for your explanation of the payment dates on these mods.

Reply by MW/VA on 9/10/10 1:37pm
Msg #352181

I'm guesssing that WF is covering themselves by backing up the mods to earlier in the year.
They were one of the companies that I heard were delaying the process for a year or more, with put-off stories like "we need more documentation, paperwork was lost, etc". I heard of a few situations where the borrowers felt it was a stall tactic & that WF has no interest in doing a mod for them. It sounds like things are moving with that lender.

Reply by OR on 9/10/10 10:14pm
Msg #352261

Re: I did one yesterday

I took a mod to a borrower from Wells Fargo. Everything was fine. Borrowers paid $250.00 to be applyed to the back due amount and the next payment that was due on that day.

Reply by Linda_H/FL on 9/11/10 8:43am
Msg #352295

When we had our mortgage with Wells Fargo

several years ago we were allowed to modify once per year and we did take advantage of it to a lower rate - the $250 fee was the service fee for processing the modification