Wachovia Home Loans; Home Loan Modification Program Only Helps 3% Of Wachovia Borrowers
Wachovia has 82,457 borrowers with home loans and in the struggling economy there has been a push to allow homeowners who are having trouble with their mortgage payments to enter into the home loan modification program, but there have been mixed results from certain lenders.
Wachovia has only put 3% of its borrowers who are in need of mortgage assistance in the home loan mortgage modification program, meaning that 3% is made up of those who are in a trial modification or a permanent home loan modification.
Obviously, some lenders are having better results than others in the home loan mortgage modification program, but for Wachovia to have only aided 3% out of 82,457 seems like a low number in terms of the program’s usefulness.
The home loan modification program had the potential to help countless families keep their homes but lenders need to do their part. Understandably, banks like Wachovia can’t hold borrower’s hands through the process, but having information and assistance available, stressing the importance of the various steps in the process, and moving more home loan modifications into the permanent phase are actions Wachovia could take to better assist others.
The home loan modification program isn’t giving homes away, but rather it’s giving someone who wants to continue paying their mortgage the opportunity to do so even if they are having financial troubles, so Wachovia needs to take steps toward improving their home loan mortgage modification stats.
Although I may be one of the “lucky” 3%, let me tell you my horror story of their modification:
We were not and still are not late on any payments to Wachovia. We requested a modification to lower our payments in order to not default. I was approved for an interest reduction from 6.63% TO 2% FOR A PERIOD OF 1 YEAR in May 2009, with interest reverting back to original 6.63% in May 2010. I was assured that this modification was an agreement between the bank and myself and would have no negative info reported to my credit bureau file. LIARS! As I have tried to refinance my home, I have come to find out that my credit file contains the following statement: PAYING PARTIAL PAYMENT AGREEMENT – which in turn is far worse than being late on a payment, according to the credit bureaus. I questioned the Wachovia Loan Officer who handled my modification, and he did say, by way of leaving a voicemail, that “yes”, I was correct, no negative reporting was to have taken place, but Wells Fargo changed the terms and are reporting modifications as negatives.UNBELIEVABLE! Forget about Wachovia doing what is right and removing their statement. I got a BS letter to my dispute stating that “the info is accurate” No Shit – but you lied! I didn’t need Wachovia’s help in ruining my credit, I could have donne that on my own! My reason for this modification was to NOT HURT MY CREDIT! And I was assured that it would not!!!!
My question is this: Does not Federal Law REQUIRE banks to notify consumers of changes in terms to their original agreements? Had I not tried to refinance my home I would not have known this was being reported this way, as I received nothing from Wachovia stating that this was their supposed policy now.
Has this happened with anyone else? I would be interested to hear. If they’ve set a pattern of deceit there could be grounds for looking into a class action lawsuit to correct their wrongdoings.
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[...] Wachovia Home Loans; Home Loan Modification Program Only Helps 3% Of Wachovia Borrowers Wachovia has 82,457 borrowers with home loans and in the struggling economy there has been a push to allow homeowners who are having trouble with their mortgage payments to enter into the home loan modification program, but there have been mixed results from certain lenders. Wachovia has only put 3% of its borrowers who are in need of mortgage assistance in the home loan mortgage modification program, meaning that 3% is made up of those who are in a trial modification or a permanent home loan modification. [...]
We are current on our mortgages. Our first is Wachovia which is ARM and has a fixed second mortgage with BOA. I’ve contacted Wachovia if we would qualify for a loan modification. I asked Wachovia about the Affordable Mortgage Payment Plan through the OBAMA program way back May 2009. I had been told to whomever I spoken with at the time to wait until this program gets effective and how it will work for the borrowers. I had kept calling until November 2009 and still up to this point have not been inform of anything about this program. I was told by Wachovia that borrowers will be notified on their mortgage statement about this program but still we haven’t receive anything.
I honestly felt Wachovia has not step up to the plate to actively implement the OBAMA mortgage plan to help just not us but also a lot of other borrowers out there that are struggling to keep their homes. I know that each case is different.
I had also been approached by Wachovia FHA Loan department and had encouraged me to apply on DEC of 2008 and 3 months later March 2009 send us a letter that we don’t qualify because we have too much obligations and the value of our home has decrease in value. Then why did they even ask that I apply for FHA loan. I just got upset and felt like Wachovia had wasted my time.
Wonder why your home mortgage modification is taking so much time, read this article as only 4% of HAMP applications are granted by the servicer.
Exerpt:
“With home values plummeting and layoffs common, homeowners are crumbling under the weight of mortgages that were at best only marginally affordable when made,” she explained.
The report examined foreclosures made from 1995 through 2009 and found that loan servicers make more money by offering forbearance (where the homeowner is given a specific period of time to not make payments in an effort to regroup financially) or payment plans than by cutting principal or offering reduced interest rate payments.
According to the report, “Loan modifications inevitably cost the servicer something. A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified, and no penalty, but potential profit, if the home is foreclosed.”
http://www.thinkglink.com/article/2009/10/21/loan-modification-help-why-lenders-are-slow-to-provide-loan-modifications
I recieved a PERMANENT loan modification from Wachovia by UPS after months and months of paperwork and the big run around, then they tried to take it away and give me a 36 months temporary loan modification for 36 months, of course I called an attorney and he stated they CANNOT go back on my Permanent loan modification, I made my first Permanent loan Modification Jan 11 2010 by certified mail,next day it’s now Jan 18th 2010 They still havent cashed my check, I guess I’m going to go to the media and start a class action law suit against them, if they try to foreclosed on my home, they have hurt alot of Wachovia customers with their LIES and DECEITS!!!!!!!!!!! Don’t believe them, write to the treasury or Obama, maybe we should get together in front of the white house as Wachovia customers and protest!!! I’m NOT going there when it comes to their overdrafts fees!!!! that is another lawsuit against them, I now changing banks, I don’t trust them!!!!!!!!!!!!!
I’ve tried twice to modify my loan. Each time declined because they claim they did not get my documentation. The second application I tracked everything and everyone I spoke to. On January 8 I called and they confirmed they received all my documents. On January 18 wachovia said I was declined because they were missing documents. I called and they said they had all the documents but that there electronic system did not transfer all my documents to
the underwriters and so the application was consider incomplete and out of time-/ To no fault of my own. I flat out asked if anyone gets a modification through and was I just wasting time jumping through hoops in a house of mirrors? They said call Monday and apply again. I said I think I’ll call an attorney before being fooled again. Wachovia sucks.
This really sucks!!!i have option arm with them..i was going to call them..to see if they would modify my loan to an interest only loan. Doesnt suck we are american citizens we pay our tax’s..and are own country cannot help us…These loan mods should be done automatically!!!! bottom line , automatically!!!!
This is in response to Curt on 12/21/09 –
I myself have just recently found out about the “paying partial payment agreement” verbage is on my credit report that has ruined my credit! Never been late either!! Had a bad loan with a rising interest rate and was proactive in resolving any foreseable deliquencies or damaging affects to our credit. I have had a permanent loan modification with OCWEN Mortgage since 5/27/2008. WAY BEFORE ANY TRAIL PAYMENT PERIODS OR THIS NEW OBAMA LAW! OCWEN has never reported us any differently until 12/2009. Our score dropped 110 points once they applied that verbage. I’m seeking legal counsel! If you would like to talk email me at christine38018@yahoo.com. I plan on moving forward with my lawsuit!
I tried to refi my Wachovia 1st pic a pay mortgage and equity line since 2007, but was told that I had another year left on my pre payment penalty and was advised to wait. By the time the pre pay penalty period was up, I didn’t have enough equity. I have been trying to modify since Jan 2009, and was told that they didn’t have any program in place, and to keep calling back. Now I’m 30 days late on both mtgs. I called again to modify yesterday, but was told that I don’t qualify. I was not given an explanation and was told that I would receive something in the mail. So now I’m just gonna stay in my house until the sheriff kicks me out. What a crock.
We were 18 months delinquint on our Wachovia pay option arm. Our house is 200K upside down. After 2 long years of trying to get a modification, they forced us into default before they would even consider giving us a mod. Its a jumbo loan $825,000 LA so Obama program does nothing for us. Jumbos have to be in default before considered for a mod.
It took them 12 months to even record a default. I sent in 6 sets of docments ( tax returns, pay stubs, bank statments, hardship letter)because they kept loosing them. So rediculous. Finally after 3 sets of loan docs (the first two sets acutally RAISED our monthly payment instead of lowered it NO JOKE). They forgave a measly $78K of principal and put our note at 3.8% for one year and then it goes up every year for 5 years until 6.5%. The problem is our house is still under water and still loosing value, so I am worried this is just a bandaid. Why dont they give perm mods?
My credit now says “current” surprisingly, it wasn’t hurt that bad for over a year of missed payments.