Wachovia and HAMP modification-anyone having success?

[Wizard]

As of This A,M. HAMP is Now scheduled to roll out this Coming Thursday
or Friday the 20th 0r 21st of August. Computer issues have delayed the
roll-out!

Wizard

[Wizard]

USEFULL INFO., FOR WACHOVIA MORTGAGE HOLDERS.
HERE IS SOME MORE VALUABLE INFORMATION. I HAVE DONE SOME RESEARCH
AND HAVE FOUND WHO IS IN CHARGE @ WACHOVIA!
THE MAN IS:


Robert (Bob) Steel
President, Chief Executive Officer, Director

e-mail: bob.steel@wachovia.com


Mailing address:

301 College Street
Mail Code: NC0005
Charlotte, NC 28202-6000


Phone 704 590-6555
Fax 704 427-3459


Hope this will be of help to those who are getting the run-around!!!!


WIZARD

[Neilo]

I wonder if this delayed roll out excuse is just another stalling tactic, something to tell people on the phone to stop them calling back for a while. I think I've seen that some people have been already offered HAMP modifications, so can't understand that it hasn't been rolled out yet. Maybe I'm wrong. I'd welcome any advice to get things moving.

[SillyWorld]

Originally Posted by Neilo

I wonder if this delayed roll out excuse is just another stalling tactic, something to tell people on the phone to stop them calling back for a while. I think I've seen that some people have been already offered HAMP modifications, so can't understand that it hasn't been rolled out yet. Maybe I'm wrong. I'd welcome any advice to get things moving.

I would believe so, even if the wind changes direction there will be delays in MODS..Hahahah

[TNT101]

Originally Posted by FireandRain

AZSunshine,

Well, my first MAP offer (a month ago) was interest only first 6 years, then princ/interest 40 years year 7-40, interest rate started at 4.5%, going up by half point or thereabouts each year to year 7, then fixed at 6.5%. The main reasons I rejected the first MAP offer:

1. So close to HAMP being rolled out by Wachovia.

2. First MAP offered NO principle reduction.

So.... waiting to hear back from my MAP underwriter about their second offer. Funny thing is, its now Friday 8/14 and the HAMp is supposed to roll out in 3 days 8/17!

Curious if I will hear something today. Regardless, I imagine I will have 7 days to ponder the new MAP offer which will set me up fine to apply for HAMP.

I'll ALMOST miss all of this crazy strategizing!

AzSunshine3 and FireandRain

I was too busy to update but here is the latest from me.

MAP offer came in last week
1. $70K reduction in principle
2. past due payments for 3 months forgiven
3. Interest rate starts with 4.5% (interest only payments- no deferred
interest adding on to the principle).
4. Yearly increase of about $200 per month on interest rate ticked up
yearly.
5. At 6th year it goes to full payment of principle and interest
($1000 increase per month- I will not be able to pay this) Probably
will have to consider selling at that point and downsizing.

I decided to take the MAP offer.
1. Signed and sent it in last week. Payment starts new mid Sept. 09.
I was able to reduce my HELOC loan by going from a fixed rate to a variable rate. Reduced that payment by $175. (4.5% rate from 9%).
Total reduction in payments was almost $850 per month. With the 3 month of no payments I will just make it with the 37.7% DTI the loan starts out with in September 2009, the first year. Need to work on reduction in expenses or higher income a year from now.

The reason that I accepted the MAP offer is that despite the principle reduction the loan is higher than the criteria for HAMP loans, mine is $892K principle now. I may not quailify for the Wachovia HAMP based on everything matching the Federal HAMP criteria.

I will have to see if the new Wachovia HAMP program will cover the higher principle loans like mine. If it does, then I will work back into getting this reduced monthly payment down to the 31% DTI ratio. I have been assured by many calls to Wachovia that accepting the MAP does not prevent coming back and getting approved for a HAMP loan modification. Probably at the back of the line though; or have to miss payments to get attention to the front of the line.

So MAP offer was close enough to get me over the current problems.
I have kicked the can down the road for 1 or more years. Still underwater on the home by about $75K. HAMP may be the only way to fix that but
will have to wait and see what Wachovia offers on my high principle.

Does anyone know if the Debt forgiven by a mortgage modification that foregives a principle reduction can be non-taxable? I have seen some information saying that any principle foregiven in Foreclosure is not taxable but I did not see anything on Mortgage Modification principle reduction is also considered non-taxable? Would be nice if this was the case. Otherwise IRS and Wachovia will be a big mess come April 2010 for me. May be back at this one more time with a new IRS debt to pay and working on a new MAP modification in April 2010.

TNT

[roysental]

Hello everybody.
I have two loans, both with Wachovia.
My modification package just has been denied because of the second (first $650K, second $72K).
Have anybody had the same situation?

Thank you.

[Wizard]

Hamp would probably be a better program, vs., the MAP!
From what I understand!
Try renegotiating with a hamp, with Wachovia come 8/20, 8/21, when the
program should be rolled out!!!!!

WIZARD

[Wizard]

Roysental:

what is the property worth vs what you owe?

It might be because you are too far underwater based on the NPV test, and it is
not profitable for the bank? I would have to know more details!l

Wizard

[Did_It_Myself]

Hello:

I thought I would share my VERY positive loan modification with Wachovia. I was not asked for a written hardship letter or a breakdown of my debts - I had everything prepared, but all Wachovia needed under their MAP, was three months of bank statements, three months of the receipts that are attached to the checks I receive from my loser ex-husband's garnished wages and my disability benefits letter. I submitted this documents to the loss mitigation department on August 4th of this year. I was approved on August 16th and I received the modification docs today.

Obviously, from reading the trials of quite a few people on this site, I had questions. I was told that I had not incurred any attorney's fees, escrow fees and and I do not have a balloon payment. Also, since I chose to deal with my lender directly, I did not have any out-of-pocket expenses in connection with a law firm of loan mod specialist. My new payments are $779.04 LESS than my previous reverse mortgage payment and Wachovia also did a principle reduction of approximately $41,000.

I was only 30 days late, but had a compelling story about my reduction of income - I won't bore you, but I feel like Wachovia exceeded my expectations in every way. I have an interest only loan (was told that I could pay more than the interest only payment) for five years. My interest rate for the first year is 3.24%. My interest rate increases .25% every year until 2015 and this is when I will be able to pay principle and interest on my mortgage. The principle and interest payments are still less than they would have been on a previous interest payment under my original loan. I am thrilled and I'm on this site to tell everyone to hang in there and to please remember that Wachovia does not really want to have any more homes that will be empty if they cannot work something out with their borrowers. I was terrified for the last year because I knew I would get to a point when making a mortgage payment would be impossible. I only had one arse who harangued me during the collection process, so I feel like I was very fortunate.

I wish ALL of you the very best of luck and you can do a loan mod ON YOUR OWN! You don't need a lawyer to "handle" everything for you and in fact, my accountant paid a fee of $3,000 to a local firm. They did NOTHING for him and once day, much to his surprise an appraiser showed up on his doorstep because Wachovia hadn't heard for anyone and thought the property had been abandoned. The appraiser gave my accountant Wachovia's loss mitigation phone number and w/in two weeks, his loan was modified to an amount he could afford and he was five months late on his mortgage. He did have additional fees to pay because he was behind, but they were reasonable as well.

Keep calling your lender and stay in touch at all times. I truly believe that I got this loan mod so quickly because I stayed in touch with my lender and was completely honest, w/out being all dramatic. Try to remember that this is just business. I know, easier said than done!

[FireandRain]

Hello All,

So I'll update you on the new developments with my Wachovia pick-a-pay loan modification. Here is the background:

* Original loan balance when I bought the house in 2006 was $595,000

* Pick-a-Pay through Wachovia, monthly "minimum payment" neg-am was $3200 which included taxes ($780 p/month) and insurance $150 p/month.

* Shortly after in 2006, took out an $80K Equity line for improvements with National City.

* For the first year, I only paid min. payment, neg am.

* As of July, my new balance (increased by all those neg-am payments) had grown to $631,000. This put me $711K into a house now valued around $675K. So, essentially, ballpark, I was $36K underwater.

* Stopped making payments in December, went into foreclosure officially on June 24th 2009. To date, 8 missed payments. Still gainfully employed.

* Was offered a typical MAP modification in early July. Reduced interest rate, starting at 4.5%, going up appx. .50% each year for 7 years, capping at 6.5% for duration of loan (40 yrs.)

* I rejected this MAP offer a month ago because they offered NO principle reduction at all. I was playing hardball figuring that the HAMP was near and that Wachovia would want to continue to play ball as well...Scary as hell, but that was my strategy.

* Yesterday, received a NEW, REVISED MAP OFFER verbal offer (overnight paperwork to arrive tomorrow) from Wachovia. Here are the new terms:

Interest rate (int only 7 yrs.) starts at 4.5%, goes up to 6.5% yr. seven, same as the last MAP offer I got. Here's the kicker.... This time around, Wachovia has offered me an 18% principle reduction, totalling $113,580. This will make my new balance $517K. Now, if I take into consideration my 2nd ($80K) with National City, I will be $597K into a house valued currently at $675K. Essentially this offer helps me go from being $36K underwater, to $78K in positive equity.

Was told I can still apply for HAMP, main advantage being the possibility of fixing at a lower interest rate. I was told by my MAP rep that the HAMP may not drop my principle very much and that HAMP might just do forebearance which would force me to repay forebeared amount whn I sell. We'll see...

So what do you think? I have 10 days to ponder this offer. I had to sacrifice my FICO to get here, but Im feeling a bit better today....

[roysental]

Originally Posted by Wizard

Roysental:

what is the property worth vs what you owe?

It might be because you are too far underwater based on the NPV test, and it is
not profitable for the bank? I would have to know more details!l

Wizard

Property value is $600,000 - $650,000.
First loan amount (original ) - $600,000 + deferred in. $50,000
Second - $72,000 with the loan balance of $70,000
I'm current on my payments as of today, but it is getting hard to kip up
Thank you!
Rita

[reinforcer17]

My HAMP trial period started back on 8/1. I have four trial payments and then my loan will be modified. I was wondering if anyone knew what kind of amortization schedule there would be for the modification. I will have 28 years left to pay and my rate will be 4.375% for the first 5 years. Then it will increase each year up to 5.5% at year 10. The rate will then be 5.5% for the rest of the life of the loan. Does anyone know if the first 5 years is interest only?

[Wizard]

Roysental:
I would go back to your lender again, and see why they are not willing to
work with you! I don't see anything here that would preclude you from the
modification, unless the income was not their or a deficit in the credit history.

Wizard

[Wizard]

Called Wachovia This A.M. Loss Mitigation Dept., said they will be testing their internal systems tonite 9/20, for a go hopefully Friday morning!!! Let's hope it
really launches this time???

Wizard

[ABC123]

All I have to say is WOW!!!! I dont think I have the guts to do what you did.

[roysental]

Originally Posted by Wizard

Roysental:
I would go back to your lender again, and see why they are not willing to
work with you! I don't see anything here that would preclude you from the
modification, unless the income was not their or a deficit in the credit history.

Wizard

Credit may a be a problem and I already have an appointment with credit counseling (do you think it may help?)
But
The reason they mentioned was "both loans with Wachovia". It does sound strange to me

[Neilo]

Reinforcer17 had their HAMP start 8/1. So how can it be that Wachovia haven't rolled it out yet? All this talk of systems issues and testing the computers is more than likely a stalling tactic, just my humble opinion.

[Wizard]

Rita:

Could be more than a credit issue, would they have to foregive a % of the
loan for you to get to 31% payment?. Since they hold both first and 2nd it seems to me that you are - 50,000K deferred and 70,000 2nd and added to the balance of 600K = 720,000.00. The credit counseling issue would be seperate from the Wachovia issue, it seems' to be that they do not want to have to forgive 120K of principal? That's my guess. Can you get to 31% monthly payment by going to a floor of 2% and extending the loan to 40 years? If not, then we would be looking at principal foreberance, and the question is how much would Wachovia be willing
eat?

wizard

Wizard

[roysental]

I would need to cut it to $600K with 2% for 480 months to be at 39.9%
Or $650K at 36.3%.
I wouldn't mind

[roysental]

Originally Posted by roysental

I would need to cut it to $600K with 2% for 480 months to be at 39.9%
Or $650K at 36.3%.
I wouldn't mind

I'm sorry, it should be 33.9%, not 39.9%

[Wizard]

Rita:

So, it looks if they would have to cut below 600K to achieve the 31%, Plus
you would still have the Wachovia 2nd of 70K, could raise what they
would have to eat by another 10K? which would bring it to 130K foreberance, est. This could be the reason? I would ask the person you
have been working with what the reason for the denial was, I believe they would have to give you that reason!

Wizard

[TNT101]

Originally Posted by FireandRain

Hello All,

So I'll update you on the new developments with my Wachovia pick-a-pay loan modification. Here is the background:

* Original loan balance when I bought the house in 2006 was $595,000

* Pick-a-Pay through Wachovia, monthly "minimum payment" neg-am was $3200 which included taxes ($780 p/month) and insurance $150 p/month.

* Shortly after in 2006, took out an $80K Equity line for improvements with National City.

* For the first year, I only paid min. payment, neg am.

* As of July, my new balance (increased by all those neg-am payments) had grown to $631,000. This put me $711K into a house now valued around $675K. So, essentially, ballpark, I was $36K underwater.

* Stopped making payments in December, went into foreclosure officially on June 24th 2009. To date, 8 missed payments. Still gainfully employed.

* Was offered a typical MAP modification in early July. Reduced interest rate, starting at 4.5%, going up appx. .50% each year for 7 years, capping at 6.5% for duration of loan (40 yrs.)

* I rejected this MAP offer a month ago because they offered NO principle reduction at all. I was playing hardball figuring that the HAMP was near and that Wachovia would want to continue to play ball as well...Scary as hell, but that was my strategy.

* Yesterday, received a NEW, REVISED MAP OFFER verbal offer (overnight paperwork to arrive tomorrow) from Wachovia. Here are the new terms:

Interest rate (int only 7 yrs.) starts at 4.5%, goes up to 6.5% yr. seven, same as the last MAP offer I got. Here's the kicker.... This time around, Wachovia has offered me an 18% principle reduction, totalling $113,580. This will make my new balance $517K. Now, if I take into consideration my 2nd ($80K) with National City, I will be $597K into a house valued currently at $675K. Essentially this offer helps me go from being $36K underwater, to $78K in positive equity.

Was told I can still apply for HAMP, main advantage being the possibility of fixing at a lower interest rate. I was told by my MAP rep that the HAMP may not drop my principle very much and that HAMP might just do forebearance which would force me to repay forebeared amount whn I sell. We'll see...

So what do you think? I have 10 days to ponder this offer. I had to sacrifice my FICO to get here, but Im feeling a bit better today....

FireandRain

Not sure if you are in a California or other state that will tax principle forgiveness but that is one of the problems I have discovered with the mortgage modification I am in the process of finalizing. Principle forgiveness gets counted as income. Worst case is the 9% maximum tax on the foregiveness for California.

Thankfully Federal will not tax up to 2012. California will tax as of 1-1-2009, forgiveness law expired for 2008 and 2007 forgiveness. April will be tough time for those who get the principle reduction in California unless a new law is implemented by end of the year. Have not heard of any proposals to do that in California.

Your offer is better than the MAP offer I received. But then my loan was above the HAMP Federal guideline on loan qualification; so I accepted.

Wachovia indicated on the call I made to them today that they will notify HAMP qualified customers they want to make offers to in the future. Not sure what the qualification will be. So the new customers that will get HAMP don't seem to be anyone who asks for it. Would be nice to finally get some guidelines from them; are they going to use the same Federal qualification or will they have some other criteria to limit who can qualify.

I am of the mind set that I will take what I have offered if it helps and go after a HAMP once they open this up to more than Freddie and Fannie backed loans.

TNT101

[TNT101]

Originally Posted by roysental

I would need to cut it to $600K with 2% for 480 months to be at 39.9%
Or $650K at 36.3%.
I wouldn't mind

Roysental,

Based on the reading of Federal HAMP guidelines, only the first mortage counts towards the 31% DTI ratio. So despite having the second, do the math with just the first mortgage to find out what interest rate it takes to get to the 31%. Lowest they are obligated to go is 31% then they extend the mortgage calulation for 40 year payout or go only as low as 2% interest rate then stop. The trick I have seen Wachovia do is have an Interest only payment the first 5 or so years so the DTI gets to 31% only for the first year (because no principle is due). Then they use a higher interest rates ( + 0.25% per year) for years 2-5 on the interest. Then they increase the interest rate and amortize over remaining 35 years from 6-40 years. This is when principle payments start, big increase; that may not be one you can afford. They do this for MAP offers today for loans they say are not covered by their HAMP program that is being changed "any day now".

Not sure they can legally do this for the new qualified HAMP customers, but Federal HAMP process is a guideline. Don't see teeth in it to force Lenders to follow exactly the HAMP process. That is why Wachovia has been able to make low-ball offers to lots of customers who ask for help saying they don't cover these loans under the HAMP process.

Good luck,

TNT101

[roysental]

Thank you for your help!
Is 31% for PITI or for PI only? It is very important.
Thank you.

[Jenifer]

Thank you all for posting. I am a new member and joined in an effort to share my experience, (which we are going through now,, still...) We started in March, recieved letter in May about the requirements. Sent everything required, ie.paystubs, tax returns, financial worksheet, bank statements, hardship letter. I have called every week for 3 months. Last week Wachovia requested Junem July bank statements. Faxed them and sent them Certified USPS ( just like all the original paperwork back in May). Sent emails to the financial link and keep getting automated responses. Called the "Corporate Office" today and the lady I spoke with Dee Dunlep was intrigued as to how I got the number. lol... I told her nevermind that, who can give me a straight answer. She claims to have expedited our file and we will receive a call within 24- 48 hours. If not, she said to call her back. I will keep everyone posted.
FYI: We purchased our house in 2006 and have a 30yr fixed Fannie mae loan @ 7.2% .. Purchased the house for 179K and it's worth 139K today.

Good Luck to everyone, I hope to read this daily and here success stories