Wells Fargo Offers Loan Modification to Struggling Homeowner, For $2 Less than He was Paying

Wells Fargo Offers Homeowner $2 Loan Modification Discount

Here’s another PR nightmare…

Wells Fargo reportedly offered a struggling homeowner a loan modification that resulted in just $2 off his monthly mortgage payment, according to an ABC news affiliate.

The Independence, Ohio-based homeowner, Mike Elewski, apparently got into trouble back in 2009 when the ongoing recession began to affect his business.

In August of 2009, he asked the San Francisco-based bank and mortgage lender to grant him a loan modification, but bank representatives said they only negotiate with homeowners behind on mortgage payments.

As a result, Elewski stopped making his mortgage payments, and before long, faced foreclosure.

Eventually a judge ordered mediation between him and Wells Fargo, and after mountains of paperwork and thousands in attorney fees, the bank offered him a modification.

Unfortunately, the loan mod resulted in just $2 off his regular mortgage payment, meaning foreclosure is likely imminent.

Continue reading here…



11 Responses to “Wells Fargo Offers Loan Modification to Struggling Homeowner, For $2 Less than He was Paying”
  1. spitzer says:

    wells fargo / wachovia are CONVICTED conspirators to fraud, drug and money laundering… they should be shut down.

  2. Connived in Connecticut says:

    At least he got $2 less! We have to pay $200 MORE. We even went through the court mediation process which took a year. We had to keep coming back month after month because of some reason or another, they needed another month worth of bank statements or this wasn’t copied just the way they wanted it, or Wells Fargo’s lawyer didn’t show up! Each month we missed another payment, accrued lawyer’s fees, taxes etc. If it had been approved in the beginning (we were only three months behind to start out) maybe it would have been less. Isn’t the modification program supposed to help people by making their payments less. If we can’t afford $1600 a month then we sure as hell can’t afford $1800 a month. What should are steps be to fight this? How do people that are facing foreclosure afford lawyers? Any advice is appreciated!

  3. Vicki Nader says:

    We had the same type of situation happen to our mortgage IN December 2009 but we were trying to work with GMAC. They modified our loan, reduced our payment by $9.21 per month (BIG DEAL), reduced the interest from 6.25 % to 5.12% (OUR YEARLY TAX DEDUCTION!!) and then escrowed our home owner’s insurance and real estate taxes which raised our payments from $829.00 per month to $1,035 per month. Granted that included the insurance and taxes but then we lost the ability to earn the interest on the money that we would save to pay the taxes and our insurance was paid on a monthly basis so it helped with getting a lower rate from our insurance company because it was included with the automobiles!! GMAC still doesn’t have the escrow accounts correct even though hours have been spent sending letters to them trying to straighten out all of this plus they took an advance payment of almost $1,000 that we sent them in December 2009 and applied to past due amounts – which is against the law according to the HAMP modifications!!!

  4. Pamela says:

    I’m with Larry take this house and shove it is a good mantra to live by.

  5. Larry says:

    TWO BUCKS? I applied for a modification due to genuine “hardship” and was approved TWO YEARS LATER… after I ceased making my mortgage payments. The modification terms offered to me called for the payment of BIG BUCKS in fees up front and an INCREASE of $300 in my monthly mortgage payments!
    This was the considered response of Specialized Loan Servicing/ Deutche Bank National Trust to my “hardship”.

    I am 62 years old, a diabled veteran and father of three minor children (one of whom has an ADA qualified disability). We experienced a 75% reduction in income due to the real estate market collapse in the Las Vegas metropolitan area. Until 2008, I paid my mortgage in full and on time every month for 15 years. The real estate collapse signalled an unforeseeable, long-term change of circumstances.

    I didn’t apply for a loan modification to get out from underneath my obligation or any part of it- I sought a lender’s accomodation where I would pay what I owed under the original loan agreement, but on new terms that would provide me affordable monthly payments in light of the change in my income circumstances- i.e. I sought a re-fi of sorts. No go.

    The response I received proves you can get blood out of a dead turnip if you are a bank and the turnip is really stupid. I chose not to play and REJECTED the lender’s proposal because, as Forrest Gump’s mother said, “Stupid is as stupid does!”

    My home is now worth less than half of what is owed, and it’s value continues in free fall with no bottom in sight. I really don’t care anymore about honoring my obloigation, now that the veil is lifted and I see in the light of day what a grotesque and despicable person I am really dealing with.

    Years ago there was a country-western song called “You can take this job and shove it!”. My mantra is, “You can take this house and shove it!” Be happy, live credit free!

  6. B Anderson says:

    Sadly, they get you to sign away your rights on the modification docs – which probably also wipes out any fraud in the prior loan docs…then they foreclose and get your house anyway.

    Well, excuse me for saying so, but hey Wells, Chase, et. al., “Bite me.” Actually, “Bite us”.

  7. pamelag says:

    they mediated. just like the judge said. @KM GMAC over insured me tho i had homeowners. they used Balboa ins. ring any bells? i lost by the way.

  8. Pamela says:

    Wow are they sure they can afford to give him this modification.Cause $2.00 sounds like it might make or break WF.

  9. Katheryn says:

    Hey, two bucks goes a long way today….I think you can still buy a piece of Bazooka Bubble gum for a buck. As the ‘Jeff Foxworthy” group would put it……Wells fargo – “Here’s your sign”.

  10. KM says:

    Sounds Familiar. Well that is better than our offer. Our payment incresed significantly on their supposed loan mod. (Which was all incorrect and they wanted us to sign it anyways). The arrearages were calculated wrong and they placed lender placed insurance on our loan at a 400%+ increase then my own yearly premium, and I was paying my own insurance. That was a fiasco. That is why we find ourselves in litigation still with Wells Fargo and their attorneys. Not to mention their discovery paperworkd and the interoffice emails of Execs. at the Wells Fargo Office of The President incriminated themselves by stating they NO Longer Have default duties on the loan and that on the modification it was eilgibles for prinicipal balance reduction and they admit my rate was really in the 3s and not at 5%.

    • losing my home in florida says:

      11/08 my husband lost his job, rehired 2/09, 3/09 i lose my job. i am unable to find employment until aug/09. i called wells fargo in june they put me in a forebearance agreement but i still paid using my credit card for food and gas. i was told i needed a escrow account to g=apply for hamp, i was told i would be modified by oct/nov i was working now. i sent paper work by fax (did not know about the black hole then which still exists with even fed ex hmm ps does anyone know how the judges are handling these cases)
      i had to resend my paper owrk numerous times, also calling waiting oon my escrow accout it was insane. jan/10 i was denied a hamp loan. no reason i did everything right so wells rago gives me a wells fargo modification my mortgage wnet down only 60$!, i was escrowed which raised it up 268 bucks . well ovwe 1400 i could not afford. the lady on the phone i called after i got the mod paper work was so mean. i call it the take it or leave it mod. either sign the papers or go into foreclsoure some choice. after adding 10k to my underwater mortgage i only paid 5 months i became under emplyed by the bp spill and my husband got sick. so now we are atit again. lost paper work, denied hamp, foreclosure. i retained a lawyer and plan on fighting this. will accept all help need as much education as i can about foreclosure defense we need to win these dogs. and save our homes and neighborhoods

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