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Wells Fargo / Wachovia unveiling new loan modification program - will it help?

For Wachovia customers in danger of losing their homes, Wells Fargo is announcing a new program to help Wachovia customers in danger of losing their homes in foreclosure. As outlined in an article today in Forbes, it is noted they will provide a reprieve thru the end of February for almost 500,000 borrowers possibly eligible for a modification program.

"Wells Fargo said 478,000 Wachovia customers, with loans totaling about $120 billion, will have access to the program, though San Francisco-based Wells Fargo said it was unsure how many customers would take part.

The customers within this portfolio that are being referred to foreclosure or are in foreclosure will receive an extension until Feb. 28 so they can apply for the modification program."

Believe it or not, as a REALTOR, I want nothing more than for homeowners to KEEP their homes. I have been begging these companies to help their borrowers so they don't need to do a short sale, and they don't foreclose on their dreams.

Is this a "meaningful" loan modification program from Wachovia? Only time will tell. I hope that if you hear of any success stories, you'll come back and tell them, I think we've all had enough bad news, I want to hear a success story!

If they do what they say:

"The modifications can include extending loan terms to 40 years, reducing interest rates, charging no interest on a portion of the principal for a set period of time or even permanently reducing the principal of loans in areas where housing prices have significantly declined."

It sounds promising...

Posted by Catherine Myers, Walnut Creek, CA Real Estate on 01/27/2009 10:29 AM

Comments (10)

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wachovia, short sale, loan modification, foreclosure, wells fargo, principal reduction, reducing interest, contra costa, homes

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10 Comments on Wells Fargo / Wachovia unveiling new loan modification program - will it help?

JAN

Catherine, I hope this is for REAL. All the others who tout loan modifications have not been REAL for the client as evidenced by CitiBank where they lowered the payment for 3 months with a balloon payment due after 3 months.

I too hope that this one will be different. I have a friend who tried last week to get a loan modification from Wells Fargo and they were not only not helpful but rude. After reading your article and Forbes, I have placed a call to her to try again. I'll let you know the outcome.

Catherine: This is great news.. I hope things work out for these home owners

FEB

do you have a link to that article? Wachovia told me just this week they would not consider a principal reduction under any circumstances

Wendy, I believe the link is in the main blog post though here it is:

http://www.forbes.com/feeds/ap/2009/01/26/ap5966060.html

FEB

A local short sale manager from wachovia told me that she has heard that principal reductions, although uncommon do occur...a max of 25%..but dont quote me on this, has anyone heard anything similar to this???

MAY

I came accross a client that got a loan modification from Wachovia with the following terms: 40 years I/O, 100k loan reduction,

Jose - what??? 100k reduction on what size loan? 40 yr I/O - I've only seen 10 yrs I/O then it rolls to amort at a predeterdimined rate

JUL

Just talked to Wells after 7 months of stalling from loan servicer TBW, they won't lower the rate or reduced principal unless you have an interest only or adj. rate. They really have no interest in helping homeowners. What a horrible company and to think they took 50 Billion in taxpayer money. I'll feel really great when paying my taxes knowing it's going to these dirtbags.

JUL

Wachovia is doing 4% reductions quite frequently - not sure how much it really helps but at least it's something!

AUG

Wells Fargo has taken money from me to do a loan modification and lost it. This money was all I had for retirement. I hired an attorney to try to find out what happened to the money and they tried to sell my home on me. I have sent in additional money since then at their request. I still do not know for sure where the money has gone. Wells Fargo has been dragging my loan modification out for 2 years and now trying to sell on me for the fourth time. They have tacked on so many fees that I may not be able to afford my payments now.

I do not know what I am going to do. I have done everything they have asked. They have put me under so much stress that I have landed in the emergency room with chest pain and I have no health insurance. I have had to take time off from work in order to gather paper work and information that has all ready been sent in at least 14 times now. I have sacrificed so much and they have given nothing but pain and sorrow.

The person suppose to be working on my loan modification Rachel Harris actually got off on some power trip telling me they were going to sell my home on me. She had a whole group of people standing around, while she had me on speaker phone belittling me, and interrupting me every time I tried to say something and they were all laughing in the background. Great fun for those that think they are God at Wells Fargo. Holding some one's life in their hands, a precious thing to be entrusted with, so carelessly smashed to the ground, with all standing around, laughing and taunting. Leaving me wanting; peace unknown, dignity unfound, working 2 jobs, to have my life's work thrown and smashed to the ground, with an evil laughter sound. Not knowing who to trust, or who is just, I turn to God, begging and pleading, to send some one leading me to the solution out of all of this confusion. Bring me to peace and happiness dear God, help me to finish this job, for I know why I created, it was not for being berated.

I will open my home to children unknown, with love, care, and laughter. They will not have to roam foster home to foster home. When they are grown they will still have this home from now to ever after.

One Woman Holding on to Her Dream.

I am open to suggestions. I have called Hud for help, have not received any yet. I will know more tomorrow. I have a lot on my plate, my gram just died today, my mom is in the hospital, my horse has a fractured leg because of my neighbors and their fire crackers, the good news I am starting a new job and I have not given up. There has to be a way to save my life's work.

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