The takeover of Wachovia Bank by Wells Fargo may be good news for homeowners stuck in a bad Wachovia home loan. Wells Fargo is anxious to quickly cure the billions of dollars in bad mortgage debt and clean up this mess as soon as possible. A Wachovia loan modification is a quick and cost effective way to turn those toxic and delinquent loans into performing assets, making the bank look better on paper and helping the homeowners avoid foreclosure.
Many borrowers are currently saddled with unaffordable “negative amortization” loans that were widely issued by Wachovia Bank. These creative financing programs started off with low teaser payment rates, but now have adjusted to high rates and rising payments. Many borrowers are actually adding to their principle balance each month when they make their loan payments. These loans are ticking time bombs waiting to explode as property values continue to decline and equity erodes.
Good news for many Wachovia borrowers-NOW is the time to apply for a loan modification with Wachovia
Learn how to fill them out correctly
Bank. The loss mitigation departments are set up and offering several loan modification options to their distressed borrowers. Qualified home owners may have the opportunity to convert their current loan into a fixed rate as loan as 2%. Wachovia is offering these programs on a graduated interest rate loan modification as a way to allow delinquent borrowers to get caught up and maintain the new lower, home loan payment. More good news, some of these programs only require “stated income” applications, meaning you do not have to present pay check stubs, tax returns, etc to qualify.
So who will qualify for these low rate loan modifications? Well, you must show the lender that this home is your principle residence, it must be a single family home (no 2-4 units), and your debt ratio must be 38% or
Learn how to figure your own debt ratio to qualify
less. This means that your housing debt, including taxes, insurance and HOA dues cannot exceed 38% of your gross income as stated. This is only a brief overview of some of the options available to Wachovia borrowers, and not everyone will qualify for these programs.
Start now to learn all you can about the loan modification process and you will improve your chances of a loan modification approval. Once you understand how the process works and learn what the lender needs to see from you to approve your loan modification application, you will feel confident in working with the bank to fix your bad loan. It is important to calculate your debt ratio and complete the required forms properly so they will meet the lenders loan modification guidelines and increase the chance for success. Take the time to learn how to figure your income and expenses and present a family budget that will conform to the lenders requirements and meet the debt ratio percentage. How you present your current situation is as important to better your chance for loan modification help.
There is a lot of information available on the internet about loan modifications-in fact, there is so much information it is very hard to figure out exactly what is accurate, up to date and most important to help you prepare your loan modification application.
Watch the short video to learn more now! Go to: http://www.youtube.com/watch?v=fV92aSTdB7E
A very complete, accurate source of information is The Complete Loan Modification Guide handbook. This is a low cost, easy to follow guide that you can buy and download right online. This Guide will provide you
Home Edition Loan Modification Kit
with step by step instructions on how to complete the provided loan modification forms, how to calculate your debt ratio, tips on writing a compelling hardship letter, direct contact phone numbers, and much more. You will save yourself hours of frustration and stress by using The Complete Loan Modification Guide handbook and feel confident that you are presenting a successful loan modification application package to your lender. Give yourself a fighting chance to save your home-an informed homeowner is a powerful homeowner.
If you would like more information about loan modifications, please visit us at:
29 Responses
[...] borrowers needing a Wachovia loan modification may feel like they are hitting their head against a brick wall. It seems like common sense that [...]
Posted on December 5th, 2008 at 8:55 pm
Great information for many many homeowners. keep up the good work.
Posted on February 24th, 2009 at 3:25 am
[...] requirements for Wachovia loan modification approval are not hard to understand. Basically, you must be able to prove your income, show that [...]
Posted on May 22nd, 2009 at 1:08 pm
how could it be when I called wachovia on 22 may 09 they said it will be two weeks to two mths before they will be doing mods. i am current on my loan but in a bad product. let them know i eithor need to mod or will have to let it go. they repeated the above. I asked them for an address to send my keys in and they said lock them in the house and leave if you want. not hard to understand.. are you crazy or just work for them?
Posted on May 24th, 2009 at 2:45 am
…Wachovia was only doing loan modifications for foreclosures,3mos, 2mos, now they are doing 1month delinquent. Now is the time to call! Ask for loan Counseling
Posted on June 19th, 2009 at 11:50 am
Who in the world are you talking to. I have tried since Nove 2008 to get someone anyone to help. No success. Worst mortgage company to deal with I am told and I certainly agree. My husband died and I have no income and they say oh well too bad so sad.
Posted on July 9th, 2009 at 8:21 pm
I just got off the phone with Wachovia - Have a 500k pick a plan at 6.75% - Decided to not pay mortgage for 1 month - 30 days past due intentionally (scary but felt it was the right time) - Called and they said because I was 30 days past due I qualified for the modification. Answered alot of questions and faxed all the paper work to them - Told to call back on Tuesday and see where they are - Should have a packet within 2 weeks. In the meantime I will not pay anything. She asked when i wanted to start paying - Said Oct 1, - she offered a 20% reduction in prinicipal - a 40 year - 10 year only pay interest - regular principal and interest payments after 10 years and a reduction of interest rates to anywhere between 2%-4% depending on my paperwork and after a year if payments were received monthly on time a $500 redeemeable VISA card. She did state that the only thing bad about it was that my credit numbers would decrease and not be too good - What does she think the alternative is? Just happy to see what they have to offer. It was too easy. Will let you know how it turned out. The number we called was 888-565-1422. good Luck!
Posted on July 11th, 2009 at 2:42 pm
Wachovia is dealing now…. Maybe they are iin hurry for Wells aquisition to close November ish. anyhow.l. I have a World (Wachovia) pick pay. 6.75% was at like 8.9% durring the peak.
Owe 678K
they just offered (without any work, may I add)
40 Yr
2.75% 1st year +.375 a year for 5 years/ interest only for 10year remainder.
then 5.4 is fixed rate full 30 yrs
230K Principal Reduce
no neg am
I have been in the property for a 14 mons without a payment.. and they have been paying property taxes, Hazard. etc.
I must say I think they have been more than flexible and very easy to work with to get this.
Any na sayers Havent tried at all.
Posted on July 20th, 2009 at 2:30 pm
Heard back from Wachovia on that elusive modification we were going to get. Said the credit check did not come out good so we were denied any help Pay up or loss your house. They told me that credit did not matter - only that income did and that they did not dispute. Now they want all the back payments that took over 6 weeks and I do not have the total. that was why we were going for the modification. No one wants to listen now. So I will never stop paying again but I guess it is too late now.
Posted on July 24th, 2009 at 11:56 am
Just got my mod package July 23rd, after working with Wachovia for 3 months. They said on the phone 18% reduction would be on the paperwork, NO such luck, 2.9% interest is good, but not loan reduction, Our house isn’t worth what they want to modify it for. I’m confused on what I should do, Gotta sign and give them one months payment by August 2nd. Why are some people getting reductions? when I called to ask about the reduction, she said, sorry those notes were for someone elses loan, I think it’s a scam, like 1st offer maybe, if I hold out I can get a better deal. any suggestions, feel free to email me at hockemom@msn.com.
Thanks,
Posted on July 27th, 2009 at 10:19 am
I called the number on a earlier post on here. It was for loan’s that where originally w/ World Bank. If your loan originated w/ Wachovia you have to call a diffrent number (800-922-4684) I have been trying since Dec ‘08 to get a modification. Again when Obama made the change. I call everyday 3x’s a day. Same answer “there workin on it.’ I’m about to lose my house. I’m in the south so there’s no long delay in foreclosure. I’ve sent them all the paperwork they need. NO HELP! The house’s in my area have dropped in price by over 30k. If anyone know’s something I don’t…PLEASE let me know. Email…rjstravel@yahoo.com
Posted on August 1st, 2009 at 5:47 pm
I have been waiting on loan modification approval since April 2009. I have called each week to check the status of the modification only to be told they are still waiting on my documents. I have over 40 fax confirmation pages showing all faxes have been received. I also have mailed copies to them, and I am still being advised they are missing documents. Finally on May 2nd I was advised all documents had been received and I should hear something in 7 days.
Called 3 weeks ago and yet again I was advised I should hear something in 2-3 weeks. Called today and was advised to allow another 3 weeks. At this point I feel I am being given the runaround about my loan mod. I have requested numerous times to speak to a supervisor or manager regarding my loan mod. Each time I am being told they are not available and they will send an email to loss mitigation group letting them know all documents are on file and to move forward with my process. I have also submitted a fax requesting to have a supervisor or manager contact me via phone. With no return call. At this point I will allow them 3 week as last requested, if I do not have an approval I will contact the FTC, BBB, and my local congressman…. I guarantee that will make them process my modification.
Mad Ass Hell
Posted on August 3rd, 2009 at 6:49 pm
Hi everyone, I been working with my bank wachovia for the last 2 months. I called them since March asking to see if there any type of program I may qualify for because I’m struggling to make ends meet due to my husband being incarcerated and I’ve exhasted all my savings and will not be able to pay them in the coming months. They told me to check back in 30 days. I called back still no program. I stop paying in May, June, and all of sudden loan counseling department calls and now I’m working with modification department. After answering there evaluation questions and faxing them over my documents (W2’s Pay stubs ect.) Finally they call back today and said I am Pre qualify for a 18% principle reduction, will mod my loan to a 40 year @ 4.85%. That was it, the guy told me wait for my documents to come and as soon as I sign them and pay them the first payment. Everything to go through. I will let you guys know what happens in the coming weeks. I owe them $300k on a pick and pay loan program. I owe alot on credit cards as well, my Debt to income ratio is very high but I do have a good job.
Posted on August 3rd, 2009 at 11:36 pm
This process is a freakin joke! I got a call months ago saying I qualify for a loan mod.. and telling me STOP paying my mortgage and we will do the loan mod!!! After months of repeatedly faxing new information old info, over and over the same information, tons of faxes!! It’s like one person dosen’t know what the other is doing… I thinks it’s time for a lawyer, these people have to be held accountable!!!!!!
Posted on August 10th, 2009 at 4:57 pm
Has anyone on here been approved for a loan mod without being late on their mortgage? I need to know if I have to be past due to get any kind of attention from the bank…thanks!
Posted on August 18th, 2009 at 12:46 pm
I haven’t paid my loans for 15 months iNVESTMENT PROPERTY tenants lost jobs could not pay so I could not pay three months pasted when I did have income I was told to pay 3 months to continue the agreement did not have the money. I have tried so many times to do right but a no success. Today, Was told did not qualify because of my fico score da! Was told new programs coming into action this week but not for investment property I’v had for 9 years. it seems no matter what I have or try to do, No matter what! underwriter controlls the cards does not OK the Mods. Now with the HAP PROGRAM STARTING MAYBE SOMEONE WILL GET APPROVED. The Underwriter is the dicision Maker of your Loan approval. Property is worth $120,000 now, balance $320,000. pick a pay 7.8% Loan is not fannie or freddie friendly. Recommended that I Short Sale it,
the tenants that I have are from foreclosure homes. Don’t know what to do feel bad that they will have to be homeless again. Help:( Saddd Heart.
Posted on August 19th, 2009 at 1:29 pm
I have a loan that I want to modify with Wachovia, We owe 430k and the home is really worth about 330K. I don’t know what the best approach is. Do you cry poor to them so they modify you, or do you tell him you can make the payments so they want to modify you? I don’t want to not be approved for this so I was wondering if anyone could help me with this. Any help would be great thanks!
Posted on August 27th, 2009 at 4:36 pm
I’ve been calling for a loan mod for 4 months with no luck. They keep telling me they are working on it. Struggling to make payments but have not been late yet. Is there anyone that has sucessfully completed a loan mod with Wachovia??? Do I have to miss payments to get help.
Posted on August 31st, 2009 at 6:24 pm
I just called Wachovia, I have a Pic-A-Pay loan and a Equity Line, they said due to I have a Equity Line, they can do anything for me. I have a $740,000 loan at 6.9% and a $49,000 E-Loan at 5.65%, house is probably worth $ 860,000. The problem is the loan is going negative monthly. Any ideas?
Posted on August 31st, 2009 at 8:54 pm
Call 1-877-272-8951 for HAMP program this is the government program
Posted on September 5th, 2009 at 3:16 pm
Agree w/Ernie, same situation with tenants, behind 2 months, request assistance, told me no to make pmnts, now behind 4 months and due for 09/15,10 days ago told me , my mod was denied and I need to make 4 pmnts, don’t have the money, butI offer to make 2 pmnts, they refuse it and now is in preforeclosure, how long do i have to it gets to FC, I’ll list the property next week.
wachovia makes things so difficult, why they offer modifications if they denied probably 90%.
Posted on September 28th, 2009 at 5:21 pm
Is there any way we can all file a massive class action law suite against them and make them modify AND pay for damages?
Posted on September 30th, 2009 at 4:13 pm
On the phone with Wachovia (MAP)…wish me luck! Like many of you, upside down, husband laid-off, 3 kids to provide for…from what I’ve heard and read, Persistance Pays Off. So here I go like a mama bear protecting her cubs.
Posted on October 3rd, 2009 at 12:45 pm
I applied for a loan modification in July. Called Wachovia the first of October they said that they have everything that they need. Why is it taking them so long to process this loan? Who can give me some answers? I need help bad.
Posted on October 10th, 2009 at 11:08 am
I just heard back from Wachoiva. The process took 35 days start to finish. They reduced princple by 10%, lowered my interested to 2.4% for the first year and my payment to 1150 a month. I provided them all the documents they needed and with 35 days I had my answer. My bank statements showed money in and money out. I would Call them tomorrow and tell them “it doesn’t make sense to make my house payment anymore” I told them this many times. My payment goes up about $100 a year for the frist 5 years then is a fixed rate at 6% a month with 33 years left on the loan. They are all so easy to work with. Hit me up if you have any questions.
888-565-1422
Posted on October 13th, 2009 at 1:37 am
Sorry first payment is Due December 1st with signed papers then I don’t have to make the next payment till January 1st. Easy as 1.2.3 Make Christmas easy this year! Thank you to this website! It saved me!
Posted on October 13th, 2009 at 1:38 am
I hope my experience with Wachovia may provide some inspirations, as well as insights, to many of you fellow homeowners. FACT: I have a pick a payment that ballooned to $342K from $319K. FACT: For over 3 years @ 26 payments / year I had NEVER EVER BEEN ONCE LATE. Stellar mortgage holder. FACT: Have home since 2002, not a flipper!!! FACT: They told me I had to be at least 60 days behind ‘in order to get help from modification’. Why? “If you are able to make payments then obviously no help is needed.” FACT: In mid-July I accepted their offer of a temporary non-payment (’forbearance’) for 3 payments. About 40 days later I asked for a modification, by then late August. FACT: Faxed in tons of paperwork: Updated income-expense, bank statements., paystubs, secondary income, etc. etc. Followed by calls, calls and more calls. Meanwhile temporary non-payment was extended (”during modification pending approval process since no payments would be drawn or otherwise automatically debited from my account”). FACT: 4 weeks ago in early-Oct. was finally told they wanted recent bank statements for 3 months then would render a decision in 10 business days. FACT: On the 8th I called by then it was mid-Oct. and was told again they needed another 30-day most recent paystubs, i.e., starting the process all over again!! FACT: Talked to them some more last week reiterating all documents were sent; they agreed. FACT: Went to my congresslady Tuesday, called again on Wednesday, and this evening Friday Oct. 30 at 7p. got a knock on my door — UPS! Wachovia overnight package! FACT: It appears - needs to be verified - they have reduced my principal from $346K to $283K, an approx. 16% reduction? FACT: They have reduced my payment from $860 every 2 weeks(!), which is $1720 a month (or more sometimes if there are 3 debits in a month) to now $950 a month for the first year @ 4% interest, and incrementally each year thereafter add about $100 on top for the next 5 years. So, in a way it is BOTH FIXED AND UNFIXED for 5 years. Commencing at the 6th year and for the remainder of the loan it will be slightly more than today’s $1720 fixed @ just below 6% until 2049 or stretched from 30 years to 40! FACT: Will do away with all those ugly, evil neg. ams. FACT: Numbers proposed in first 5 yrs. are all INTEREST ONLY payments! FACT: No more automatic debiting!
FACT: So this has been my humble AND infuriating experience with Wachovia! But at last this unhappy pick-a-payment fiasco nonsense appears to finally come to an end!!! End!
SPECULATION: Lets see how the market will improve in the next 5-7 years. Hopefully if affirmative can sell my property in the next 2 or so!
More info? Strategy, guidance, encouragement? 650-301-4978, 408-506-4788.
Chins up! Fellow Wachovia homeowners! In the fighting words of Winston Churchill: “Blood, toil, sweat, and tears!” Blood - Try not to have blood pressure shot up when told, “Did we get all your paperworks?” Toil, sweat are an absolute MUST! Tears? Not for fears for sure: When you see your good credit dropped like a hot potato from 700s to high 500s!!!!!!!!!! Chins up!
Posted on October 31st, 2009 at 4:44 am
I have been dealing with this Wachovia Modification since July! I am 15 mos behind and have done the following:
Sent all required papers, had 3 phone “intererviews” all at different times, been told they lost my papers and that they were probably shredded!
I was told 4 different times, that they had everything they needed to get this thing going…only to hear 3 weeks later, the account was closed due to not getting more pay check stubs, or profit/loss statement, or…???!
I was told 3 different timers ..” Ms McDonald..we have everything we need, and I am sending this directly to the underwriters and you should hear something in the next 2 weeks, but please call every 5 days to make sure..”
WHICH I DID!! Now I just received 6 Certified Letters saying I have defaulted my loans!
I called and some uneducated clueless women says to me…” Well everything expired because you needed to send yet MORE paycheck stubs to keep the file active..” I said I did send everything that was asked, in fact I would go right down to MY branch and make sure they faxed it all directly for me!!
Yesterday was the last straw…she said if I have an hour for another interview, we can redo the entire thing AGAIN!
Mind you..we have done this 3 times already…and each time they tell me, OK this is all we need, I will see that it all gets sent thru!
The problem with how this is being handled is that they do not have a system. I should be able to call and talk to ONE person, when I send everything in..it should go thru within a week or so…but what keeps happening is they take so much time, that when that happens, they say now they need my paycheck stubs for the last 2 weeks!
I have done everything I can do deal with them, asked for a supervisor, asked for someone who knows what they are doing..and still, they keep pulling this!
I am at my wits end now and planning on hiring an attorney to sue.
Yeah..I was also told Wachovia doesn’t know what the f**k they are doing…
Thats great!!
So WACHOVIA GET YR CRAP TOGETHER OR YOU WILL HAVE SOME LAW SUITS TO DEAL WITH!!!!!!!!!!!!
Posted on December 12th, 2009 at 11:15 am
I am in the middle of my modification request. I applied on Oct.20,09, and had to send in additional papers once, which I discovered when I called. I have since been told that my file is complete and that the appraisal is in and it is in underwriting.
I was told yesterday, Christmas Eve, that my file is on the “deal desk”, and should have an offer this week.
I call every 3-4 days to get an update because I have not had ONE call from Wachovia.
I was current when I applied for a modification. I attempted a refinance last year, and after a 4 month review was rejected the week Wells bought Wachovia because of the value of my house…
My mortgage file was frozen when I applied and I was told NOT to make payments. I had a loan officer from my branch call to verify, and then I was told to MAIL the payment only, which I did, and they never cashed my check. They claim they do not know where my payment is and they want me to stop payment on my check and pay at the branch next week. They have already damaged my credit and placed me in collections, even though I was given false information. They now claim they will fix it, I have to fax in a request to collections, which is a different department than loss/mitigation, which handles the modification.
I have read horror stories, this one in particular has caused me great alarm:
http://www.mcclatchydc.com/227/story/80867.html?pageNum=2&mi_pluck_action=page_nav#Comments_Container
What I have discovered is that it appears that there is language in the Obama plan that allows you to be foreclosed on at the Bank’s whim, even if you complete the trial modification successfully. There is no legal requirement for the Banks to protect you if you perform. At this point, I am going to request a straight Wachovia modification only, if possible. I would hate to perform and then end up being foreclosed on without notice because the bank can make more off my house that the money the treasury pays for the Obama plan.
Lastly, I think this is a MUST: Write and call your Congressman and Senator. Get a copy of your file to them ASAP. They have contacts at Wachovia, and will assist in obtaining a modification…I am using my Senator, and I do believe it is helping…
I will post again with an update when I have an answer.
Posted on December 25th, 2009 at 6:16 pm
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