Contact Wells Fargo before you miss a payment
Call Wells Fargo's loss mitigation department as soon as you know you cannot make a payment. The phone number is on your mortgage statement or you can reach them at 1-800-869-3557. Do not wait until the payment is late — lenders are far more willing to work with you before a missed payment appears on your credit report.
When you call, explain your situation clearly: job loss, medical emergency, reduced income, or whatever caused the problem. Wells Fargo will ask about your income, expenses, and how long you expect the hardship to last. Have your most recent pay stubs and bank statements ready. The goal of this call is to find out what options exist for your specific circumstances.
Wells Fargo is required by federal law to review you for loan modification, forbearance, and other relief options before foreclosure can proceed. Starting the conversation early gives you the most time to work through these options.
Key Takeaways
- Contact Wells Fargo's loss mitigation team before you miss a payment, because options are more limited once a payment is late.
- Forbearance pauses or reduces your payments temporarily, but you will owe the full amount later — usually added to the end of your loan or due in a lump sum.
- A loan modification changes the terms of your mortgage permanently, lowering your payment by extending the loan, reducing the interest rate, or both.
- If you do not may have access to for modification or forbearance, you may be able to sell the home or pursue a short sale before foreclosure begins.
- Foreclosure takes months to complete in most states, giving you time to explore options even if you have already missed payments.
Forbearance: pausing payments temporarily
Forbearance is an agreement to pause or reduce your mortgage payment for a set period — typically three to twelve months. During forbearance, you do not have to make the full payment (or any payment, depending on the agreement). Interest continues to accrue, and you still owe the full amount.
At the end of forbearance, you owe the missed payments in full. Wells Fargo may allow you to add this amount to the end of your loan, roll it into a new payment plan, or pay it back in a lump sum. The terms depend on what you negotiate with the lender.
Forbearance is useful if your hardship is temporary — you expect to return to work in a few months, or a medical crisis is passing. If your income problem is permanent or long-term, forbearance only delays the problem and you will face the same payment crisis when forbearance ends.
Loan modification: changing your mortgage terms
A loan modification is a permanent change to your mortgage. Wells Fargo can lower your payment by extending the loan term (spreading payments over more years), reducing your interest rate, or both. Some modifications also forgive a portion of the principal you owe, though this is less common.
To may have access to, you must show that you have a hardship (job loss, illness, reduced income) and that you cannot afford your current payment but could afford a modified one. Wells Fargo will review your income and expenses. The process typically takes 30 to 90 days, though it can be longer if the lender requests additional documents.
If approved, your new payment is lower and permanent. You keep your home and your loan stays in good standing. The trade-off is that you pay interest for a longer period, so the total amount of interest over the life of the loan increases.
What happens if you miss a payment
A missed payment appears on your credit report after 30 days. Wells Fargo will send you notices and may call you. You are not in foreclosure yet — that process begins only after you are typically 120 days behind, though the exact timeline varies by state.
Even after you miss payments, you can still contact loss mitigation and work toward forbearance or modification. Many borrowers successfully negotiate relief after missing one or two payments. The longer you wait, the fewer options remain and the more damage occurs to your credit.
If you receive a formal notice of default or a foreclosure notice, you still have time to act. Foreclosure is a legal process that takes several months in most states. During this time, you can still pursue loan modification or other relief.
Selling or short sale as an alternative
If you cannot afford your mortgage and do not may have access to for modification or forbearance, you may be able to sell the home. If the sale price covers what you owe, you walk away with no further obligation. If the home sells for less than you owe, you have a short sale.
In a short sale, Wells Fargo agrees to accept less than the full loan balance. You sell the home, the lender receives the proceeds, and the remaining debt is forgiven (or you negotiate a payment plan for it). A short sale damages your credit less severely than foreclosure and you avoid the legal process.
Short sales take time to arrange — typically two to four months — because Wells Fargo must review and approve the sale price. You will need a real estate agent and a buyer, and the lender must agree that the sale price is reasonable. Start this process early if you think you will need it.
How foreclosure works and your timeline
Foreclosure is the legal process Wells Fargo uses to take back the home when you cannot pay. In most states, foreclosure takes four to six months from the time you receive a formal notice. Some states are faster, some slower, depending on state law.
During foreclosure, you can still live in the home. You can still negotiate with Wells Fargo. You can still sell the home yourself. The foreclosure process does not end immediately — there are court filings, notices, and a sale date. This timeline gives you room to act.
Once the home is sold at foreclosure auction, you lose ownership and must leave. In some states, you may have a right of redemption — a period after the sale during which you can reclaim the home by paying the full amount owed. Check your state's foreclosure laws or speak with a HUD-approved housing counselor to understand your specific timeline.
Getting help from a housing counselor
HUD (the U.S. Department of Housing and Urban Development) funds free counseling services in every state. A housing counselor can review your situation, explain your options, help you prepare documents for Wells Fargo, and sometimes negotiate on your behalf.
To find a counselor, call 1-800-569-4287 or visit HUD's website. Counseling is free and confidential. A counselor cannot force Wells Fargo to modify your loan, but they understand the process and can help you present your case effectively. They can also tell you whether your state has additional programs or protections.
If you are facing foreclosure, a housing counselor can also connect you with legal aid if you need it. Some states have programs that pay legal fees for borrowers in foreclosure.
Frequently Asked Questions
How long do I have before Wells Fargo forecloses?
Foreclosure typically begins after you are 120 days behind on payments, but the exact timeline depends on your state and your loan documents. From the time you receive a formal notice of default, you usually have several months before the foreclosure sale. Contact Wells Fargo or a housing counselor to understand your specific timeline.
Will forbearance hurt my credit?
Forbearance itself does not appear on your credit report as a negative mark if you enter it before missing a payment. However, if you have already missed payments, those will show on your credit report regardless of whether you then enter forbearance. Once you resume regular payments, the impact on your credit score gradually lessens over time.
Can Wells Fargo deny me for loan modification?
Yes. Wells Fargo must review you for modification, but they can deny your request if your income is too high, your hardship is not documented, or you do not meet their criteria. If denied, you can ask for a reconsideration or explore forbearance, short sale, or other options. A housing counselor can help you understand why you were denied and whether you can reapply.
What if I owe more than the home is worth?
Being underwater (owing more than the home's value) does not prevent you from modifying your loan or pursuing forbearance. It does complicate a short sale, because the lender receives less money. Loan modification is often your best option in this situation. A housing counselor can help you understand whether modification is realistic given your circumstances.
Do I need a lawyer to negotiate with Wells Fargo?
You do not need a lawyer to contact loss mitigation or negotiate forbearance or modification. A housing counselor can guide you through the process for free. You may want a lawyer if you are already in foreclosure and want to challenge the process, or if you are negotiating a short sale and need legal review of the agreement.