Wachovia mod is not helpful...now what?? - Loan Modification Forum

optionARM · 10-08-2009, 08:13 PM

We just received our loan mod agreement from wachovia and the interest rate went up to 5.5%, (will cap out at 6.5% in the 7th year), interest only payment is the same as our option #1 neg. amor. payment (difference of about $10) they reduced our loan balance by about $70k but extended the term to 40 years. How is any of this helping us??

Has anyone gone back to their mortgage company to negotiate their mod. agreement? any ideas?

jakelabry · 10-09-2009, 03:52 AM

Not exactly sure what your goal is? You have the most toxic loan product out there - option ARM! If they turn your loan into a conventional fixed-interest one then you will be paying principle and interest with a substantially higher payment than what you have now. You have not included any details (amount, rate, etc.) regarding your loan in any of your posts so it's difficult to know what to advise. Are you eligible for the gov't MHA program? Have you attempted that? Did you contact NACA? Sounds like Wachovia has given you a band aid mod that is not a long term fix. Can you afford a fully amoritized payment (principle & interest)? They whacked off 70K and stretched it out over 40 years and the payment is still interest only? Honestly, I would be worried about that.

otisanddinga · 10-09-2009, 06:51 AM

yes, give us details and we can hopefully help. who at wachovia did you deal with? sounds like they could reduce interest lower.are there any violations in your original loan documents? It could give you more leverage if there are violations which most have with wachovia. is that your lender?

dan m · 10-09-2009, 07:32 AM

$70k is nice. maybe if you can afford it than do it. than reapply next year for a new one. did you try for hamp?

10-08-2009, 08:13 PM	#1 (permalink)
optionARM Junior Member Join Date: Jul 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Wachovia mod is not helpful...now what?? We just received our loan mod agreement from wachovia and the interest rate went up to 5.5%, (will cap out at 6.5% in the 7th year), interest only payment is the same as our option #1 neg. amor. payment (difference of about $10) they reduced our loan balance by about $70k but extended the term to 40 years. How is any of this helping us?? Has anyone gone back to their mortgage company to negotiate their mod. agreement? any ideas?

10-09-2009, 03:52 AM	#2 (permalink)
jakelabry Senior Member Join Date: Jun 2009 Posts: 200 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Wachovia mod is not helpful...now what?? Not exactly sure what your goal is? You have the most toxic loan product out there - option ARM! If they turn your loan into a conventional fixed-interest one then you will be paying principle and interest with a substantially higher payment than what you have now. You have not included any details (amount, rate, etc.) regarding your loan in any of your posts so it's difficult to know what to advise. Are you eligible for the gov't MHA program? Have you attempted that? Did you contact NACA? Sounds like Wachovia has given you a band aid mod that is not a long term fix. Can you afford a fully amoritized payment (principle & interest)? They whacked off 70K and stretched it out over 40 years and the payment is still interest only? Honestly, I would be worried about that.

10-09-2009, 06:51 AM	#3 (permalink)
otisanddinga Banned Join Date: May 2009 Posts: 84 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Wachovia mod is not helpful...now what?? yes, give us details and we can hopefully help. who at wachovia did you deal with? sounds like they could reduce interest lower.are there any violations in your original loan documents? It could give you more leverage if there are violations which most have with wachovia. is that your lender?

10-09-2009, 07:32 AM	#4 (permalink)
dan m Senior Member Join Date: Aug 2009 Location: Manteca- California Posts: 134 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Wachovia mod is not helpful...now what?? $70k is nice. maybe if you can afford it than do it. than reapply next year for a new one. did you try for hamp? __________________ A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government. — George Washington

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