"" banks will say they can't do a modification on Moral grounds."" Pure fiction. Do you even know who these "banks" are? As far as first position home loans go, Wells is primarily a mortgage originator and servicer. Over 90% of the loans Wells services belong to GSEs and private investors not Wells Fargo. Ultimately the GSE's and private investors on the hook for the loss, decide which loans will qualify for mods or Short sales. In case you don't know the acronym GSE, here's a clue. G stands for Government.