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Loan modification trial period. Bank didn't file with the Feds on time.

Asked over 2 years ago - Elk Grove, CA

I completed the 3 month loan modification trial period and now Wells Fargo wants me to submit all my information from scratch. They claim that I didn't submitted the required information on time which is a lie. I talked to two of their agents and they told me that the truth is that they fell behind due to the amount of loans in the same status. Now, the bank doesn't even want to accept my payments and now my credit is ruin.
Is there anything legally speaking that I can do to pressure the bank into accepting my payments and the new loan terms?

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Attorney answers (1)

Michael Scott Noble

Reputation Level 9

Answered over 2 years ago. Chapter 7 Bankruptcy Attorney in Sacramento, CA.

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Unfortunately a loan modification is a new agreement requiring all parties to agree to the new terms. Until you have a SIGNED agreement, the bank can say, "no" at anytime. If that mortgage is the only problem with your credit, you can just pay according to the loan modification. That way you will be current under the modified loan once it is finalized. There is no guarantee they will modify the loan, but it sounds like they were ready to once and you can afford it. I would think you would have a good chance of working it out.

Once you get everything straightened out, then check your credit and maybe the bank will work with you on the credit. Even if the bank doesn't help you with your credit, one year of perfect mortgage payments can usually clean up the mortgage assuming no other debts are delinquent. If other debts are delinquent, then bankruptcy is usually the fastest way to repair your credit.

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