Special Forbearance and
Trial Modification Scams
Special Forbearance plans and Trial Modifications are just Wells Fargo's stalling tactics, requiring loan mod. applicants to pay in money that generally isn't applied to your mortgage to somehow pre-qualify to be re-reviewed for a loan modification. This is just a load of BS. If you are offered a "special forbearance," that doesn't get you any closer to a loan mod. Even if you make all the agreed-upon payments on time, you'll still be asked to keep sending paperwork over and over. You'll be reported to credit agencies as delinquent on your loan during the forbearance and/or trial mod. period - even though you are making the payment Wells Fargo specifies. Your loan will likely also still be progressing on the track toward foreclosure (the deadly dual-track system.)
A trial modification is part of the same scam. It's just another delaying tactic to keep stringing you along while the foreclosure machinery is turning in the background. (Hey, it takes a while to forge tens of thousands of documents!)
Here's a series of videos detailing the issues facing one Arizona woman seeking a loan mod. from Wells Fargo. Listen to the representative from the Office of the President (now known as the Office of Executive Complaints) feeding a line of BS to this very savvy and reasonable woman and her equally clued-in daughter. What a load of crap. Wells Fargo is trying to get this woman to sign a Special Forbearance Agreement that doesn't really fit the situation she thinks she has negotiated with Loss Mitigation. Why? The representative would have us believe that none of the thousands of employees of Wells Fargo could possibly write an agreement that matches what they are supposed to be doing. That all the loss-mitigation staffers are forced to work from form letters that actually have nothing to do with the specific cases they are pretending to be negotiating.
If Wells Fargo had any intention of honoring these agreements and immediately proceeding with a permanent loan re-structuring plan upon successful completion of the "trial period" or "forebearance" as their documents seem to promise, the language of the agreements would be specific, concrete, clear and enforceable on BOTH parties. What Wells Fargo (and the other big banks) really intends here is just to make a few more dollars off these people who are already in financial difficulty and them dump them into foreclosure when it's convenient for the bank to have the loss on their books. (That's right, they don't show a delinquent mortgage loan as a loss until the property is sold in foreclosure.)
How much would you bet that the representative didn't send the document she promised guaranteeing the terms these women think they have negotiated regarding this forbearance? In my experience, these promises were not met and such conversations generally led to my "review" being re-assigned to another person, whose contact information I had to fight to find. Even if this WF employee does actually send the "addendum" she promises, the homeowner is still supposed to sign the inspecific, inaccurate forbearance agreement form and then just hope that the addendum carries any weight with an organization that really, truly has no intention of modifying this woman's mortgage.
Don't miss the part at the four-minute point in the third video where the daughter gives the Wells Fargo rep. a polite but very pointed primer on professional business practice. I suspect it's what we'd all like to say to the Wells Fargo executives who decided "customer disservice" was a sustainable way to run a business.
"The paperwork that these people have sent ... it's absolutely unacceptable that they would expect her to sign a document that is so poorly executed, doesn't have any reference whatsoever to the information you're now giving us. To me that is unconcionable, it's unacceptable and it's beyond business practices that would be acceptable in my business and I don't see how possibly ... Wells Fargo can have integrity that they say they want to have in this whole debacle when this kind of stuff gets sent out incomplete, inaccurate, poorly written and then expect borrowers to step forward and do their part..."
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