Wachovia Success with modification

[wcajoni]

I have been trying to work with Wachovia for the last year with no luck. In April we finally stopped making payments because I had our son 5.5 weeks early and was on disability (50% of income). I didn't go back to work until mid August and applied. My mortgage info is below:
$326k balance (value is $225k)
6.46% interest rate fixed for 30 years - in year 3
Payment $2153

They came back in 7 business days with a modification with the following terms:
$267k new principal (reduced by $59k)
6.46% Interest only for 10 years and then 30 year fixed at 6.46%
New payment: $1458

Unfortunately I was laid off the week I went back to work so we had to decline this offer. I reapplied on Monday of last week and they approved a new modification on Thursday in 4 days.

NEW TERMS:
$267k principal
5.7% interest going up to 5.85%, etc over 5 years up to 6.46%
6.46% fixed for 30 years AFTER first 10 years is Interest Only
No escrow account
Waived all late fees, interest, and no putting anything on the back end of the loan. They said accepting this does not limit me from other programs so we are taking it.
New payment: $1271

Any feed back on problems once you get the modification with Wachovia would be appreciated as I haven't signed it yet.

[Evan Bedard]

Hi wcajoni,

NEW TERMS:
$267k principal
5.7% interest going up to 5.85%, etc over 5 years up to 6.46%
6.46% fixed for 30 years AFTER first 10 years is Interest Only
No escrow account
Waived all late fees, interest, and no putting anything on the back end of the loan. They said accepting this does not limit me from other programs so we are taking it.
New payment: $1271

Any feed back on problems once you get the modification with Wachovia would be appreciated as I haven't signed it yet.

That is an excellent modification congratulations! You are one of very few that I have seen achieve a principle reduction..

[Jule215]

I have a friend who I helped with a Wachovia modification, and he got a deal very similar to yours...He was in a neg. am. loan...Made his last payment in Dec. 08...We contacted them in Mar. and had a mod. by the end of April...( Much easier than my own mod with Indymac)...But, I degress.

They offered him a 10yr interest only, ( but better than going in the red), and it lowered his payment significantly...Anyway, it was very simple, and they've been good to what they told him...He's made 4 payments to date.

Oh, one difference though, is they did not reduce his principle.

[Extreme09]

Well just this morning I send back to wachovia my modification terms I was offered a 18% reduction on my principal balance and a interest only payment at a starting rate at 5.75% to change every year until 2015 in which it will be at a fixed rate of 6.75% for the rest of the term of the loan this payment will include P&I. And this loan will be for 40 years. I was in a pick a payment interest only. This offer was awesome considering that here in miami the house have declined very much. I guess that wachovia(wellsfargo) are in a helping need.

[Evan Bedard]

Hi extreme09 welcome and thank you for joining!

Congratulations that is an excellent modification and again one of very few I have seen with a principle reduction! It looks like Wachovis is the only lender who is offering them..

[californiadreamer2000]

Can you please tell me how late you were with your payments?
Did they contact you from loss mitigation/collections?
I fear that modifications come with 90+ lates and that totally trashes credit of course.

[Extreme09]

Well first I was late for about 3 months and when Icalled them for a review they told that I did not qualify for any programs for a was late 3 months so then I waited a couple of days and paid 2 months, when it posted in my account I called and thats when they told me I qualfied for a modification. I called the number that was on the letter of past due payment due. also when they ask u your financial monthy expense try not to go too over your monthly gross income by $200.00 they want to that ur close to ur earnings and try not give credit cards expense , just give them your basic home expenses for if they see that u pay creditcards and not them and they don't like to see that remember credit cards are luxury not nessesary needs. after they told me I qualified I and my loan was being process for modification I did not make any more payments after.

[Ramz858]

I got a Mod thru the Wachovia MAP program about 5 months ago
I had a neg am pick a pay
They knocked of $93k of principle and gave me a fixed 40 yr
I have never been 30 or more days late with Wachovia (so never a ding on my credit) and they still gave me the mod...

So don't be afraid to try even if you're not way behind!

[californiadreamer2000]

Thanks for that valuable information...
so, now my question is:
What does one do to get "flagged" for a modification with Wachovia - soon to be Wells Fargo?
I have called diligently since March 2009 asking for one and am only told that my loan has not been "flagged" for a mod.
I got a hold of a "friendly" loss mitigation rep and was told I was not in the delinquent category and therefore would have a hard time getting "flagged"...
I even have to fight to get transferred to loss mitigation at times... it has to be after the 15th of each month and I cannot have sent my payment in.
I live in San Diego... are some of these mods central USA or East coast?
Do you think CA is just on a black list for these lenders?

[californiadreamer2000]

I thought I would update my MAP mod with the forum...
I'm almost at the 40 day mark.
No final word yet.
Anyone have updates on what is the normal time frame?