Hello,

6 months after I submitted my modification request, I finally received paperwork to sign up for a 3-month trail from Wells Fargo. My payment will be reduced by $700.

Frankly, I am surprised I even qualify since my Debt to Income Ration (PITI) is ~25%. I have never made a late payment and my credit is excellent. Also I have enough cash reserves to make my payment for at least 2-3 years if I lost my job today.

I am starting to think that they spent very little time reviewing my financial status before sending out the trail offer. I think they simply looked at my income/expense worksheet which showed a $500 monthly loss. But this loss is after my 401k and ESPP contributions (both which I ultimately get back), which i clearly stated in the worksheet. I am guessing they will more closely examine my financial status during the trail period and DENY ME.

I am guessing I have a good chance at being denied. I don’t want to take that chance if it means my credit will be hurt in the process.

My questions:
1) If anyone has experienced being denied after entering the trail period, what happened to your credit and current loan?
2) Is there any harm in trying to see if I qualify by entering into the trail period with reduced payments?
3) Will they inform me that I have not qualified before my credit gets hit?
4) Will it help my credit if I make my full mortgage payment instead of the reduced amount?

Any help is greatly appreciated.
Thanks

If you're under 31% and have no hardship, yes, you will eventually be denied for a final mod.

You cannot make full payments during the trial period, you have to pay the exact trial amount.

Yes, ones they report that you are on reduced payments, your credit score will get a substantial hit 80-90 Fico points, even if you're current while entering the trial.

And yes, if you're not approved at the end of the trial, they could report you 90+ days late.

So, bottom line, yes, there is harm to your credit in trying to see if you qualify, especially, since you're already seem to know that you won't qualify.