Wells fargo wants to see bank statements for loan modification,shopping on statement?They said they wanted to see how i pay for the mortgage, And only thing i have is my bank statements showing the automatic deduction We are trying to get a permanent modification since having financial hardship. Im worried about the transaction showing, shopping, and going out to eat and whatnot, will that matter?? | |
I disagree with the other responses. They want to see how much money you are making to see if you can still afford the house even if they remod it.
They do not have time to line item every item on your bank statement and determine if its a legitimate expenses. It is way too subjective. A line item for Applebe's could be a legitimate expense. If you are also working on the side and trying to take out business clients to obtain contacts, that is a legitimate expense. I'm not saying that is the case with your expenses, but what I'm saying is that it is darn near impossible for them to determine if it is legitimate.
Hell even toilet paper...who is to say that is a legitimate expense? You COULD reuse rags and wash them...How about milk? Well you COULD drink water. What about air conditioning? Our forefathers did just fine without it...
You see what I'm getting at?
I see you are only interested in responses that support your spending habits, but that is not the correct answer.
Whether you qualify for a permanent modification will be under intense scruntiny, you are asking the lender to take a loss on money you promised to pay. If you can afford to go shopping and eat at Perkins (for those of you on the west coast, Perkins is about the equivalent of Denny's), you are putting your qualification for a loan modification at risk. The lender is mainly interested if you can make the payments under the modification, but they take into account all of your spending. That $25 you spent at Perkins could go a long way at the grocery store. Thrift stores sell winter clothes. The bank does not expect you to eat bread and water, but they do not want to approve a permanent modification for someone who really does not need it to stay in the home.
What may happen here is they extend the temporary modification and review your spending/saving habits again in a 6 months or a year.
You should be able to get receipts showing the details of the automatic debit from the bank.
But if your bank statements reflects lots of unnecessary expenditures, such as eating out and shopping for non-essential items, then I have to question whether you are really suffering a financial hardship or if you just have a spending problem.
The bank is requesting the bank statments to Review your A/P's ( accounts payable) Not your income becasue they get that info from another source ; they want to review your spending trends
Of course it will matter. If they see deposits of sufficient value for you to make your current payments and also see evidence of frivolous spending, they aren't going to give you a modification. They're going to tell you to get your spending habits under control. You will need to explain just WHERE your money goes.
Of course it will matter, you are asking then to take a loss so that you can go to the mall. Of course it will not matter if you were truthful on your summary sheet and told them how much frivolous spending you do.
Yes.
