How To Negotiate a Reduced Payoff with Wells Fargo

Applying for a reduced payoff with Wells Fargo is something that not a lot of people know how to do. Not all homeowners are given the Wells Fargo loan modification program, which will lower your mortgage payment and prevent you from a mortgager’s equitable right of redemption. Applying for this program will help you a lot in your financial obligations and lessen your problems.

Here are some useful tips you can use to negotiate a reduced payoff with Wells Fargo:

  • Prioritize your expenses. The lender must know that you are serious in maintaining your home ownership above all other expenses. Settle your budget, and get rid of other unimportant expenses. Know how to compute your own debt ratio so that you know your new mortgage fee. You can obtain more details about this very important pointer by searching online.
  • Complete the needed requirements. Gather everything you need (documents, letters, forms, etc.) to present to Wells Fargo for the application. Take your time so that you will not miss anything important. It is better if you have a checklist of everything that you need. Remember, you do not want to commit any mistakes when you submit your application. You must prove to Wells Fargo that despite the fact that you cannot pay the existing fee, you are able to pay and continue the mortgage.
  • Submit your application. Be confident that you haven’t missed anything in all the preparations you did for this.

Here are some other tips to help you negotiate your payoff:

  • Work out a payment plan with Wells Fargo. This is the first thing you have to do. Fix your credit score to remove the negative accounts from Wells Fargo. Work out a good payment plan with them, and assure them that you can pay all your obligations. Showing them billing statements, including pay stubs for household bills such as utilities and telephone bills, grocery expenses and transportation costs will help you prove a case that you can pay all outstanding debts.


  • Well Fargo is willing to take off 50% of your liabilities if you can work out a good payment plan with them. The company is also willing to reduce interest rates if necessary, to facilitate your ability to make payments.


  • Pay all outstanding debts. If you can pay a certain percentage of your debt to Wells Fargo, they are willing to work out a plan to remove all negative accounts in your credit score. It will certainly give you breathing room and stretch your paycheck with a consolidation loan.


  • Partial Claim or “Claim Advance”.  A partial claim or claim advance may also be an option. The mortgage insurer will advance funds to reinstate all or part of the due payments, and the customer would sign over to the mortgage insurer for the amount in advance. You can resume your regular payments on the loan and will be responsible for the note of the insurer. It will not increase your monthly mortgage payment.


  • Use short sale.  You have to sell your home, the proceeds of which will be used to pay off the mortgage. Any amount that will be left on the loan will be waived. This condition is available if the market conditions place your home’s value at an amount less than your total amount owed. The resulting sale will pay off your mortgage obligation.


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