Wachovia and HAMP modification-anyone having success?

[raharkne]

I have a Wachovia 30 yr fixed 6.875% loan. After a separation and reduction in pay, I sent a modification proposal through NACA in January 2009. By the time the bank acknowledged my package, I was already scheduled for June foreclosure. I was finally told my file was forwarded to a negotiator for consideration under the HAMP plan, but that it would take 30 to 45 days to have an answer. I was able to reach people at Wachovia that were caring enough to put off the foreclosure (which was already being advertised) for two months. I called the attorney's office and they verified it was postponed for modification. I feel like a million bucks, even though I know I have a long way to go. Has anyone received a modification from Wachovia under this plan?

[PERSISTENT32]

I am waiting on a loan modification from Wachovia as well. My loan is 30 year fixed and my interest rate is 7.75%. I called the executive team for Wachovia because I have been trying to get a modification for months. I was told I will hear something by the end of this week. I will post the phone number in a second. They are really nice as well.

[PERSISTENT32]

Wachovia Executive Team 866-642-9407 posted by a member.

[raharkne]

Thanks....you are the first person besides myself that is not Pick-A-Payment with Wachovia...good luck!

[PERSISTENT32]

I know thats why I decided to join. I didn't see anyone with my circumstances. I figured if I join and tell my story maybe I can help someone else or they can help me. I called yesterday the regular loss mitigation number to check on the status of my loan. I was told it has been in loan modification for review since March and I may need to send more pay stubs. I was like GREAT maybe all this waiting will pay off. I am trying to stay positive.

[PERSISTENT32]

I spoke to the executive office and someone from Wachovia contacted me regarding my loan modification. I need to send them updated information and she will escalate it directly to a loan modification specialist. I will be sending the information in tomorrow. I was asked to complete a work out plan with my gross and net plus my monthly expenses. She informed me that Wachovia does have loan modifications however I didn't qualify for the Obama plan because my loan is not held by Fannie Mae or Freddie Mac. I didn't think you loan had to be held by them for a loan modification. I think she is misinformed. I will keep you posted.

[raharkne]

I have made it through the loss mitigation...send check stubs and tax returns deal already and supposedly mine is with a negotiator..from what I read it doesn't have to be Fannie or Freddie.


If that doesn't work...call NACA
https://www.naca.com/refinance/refinanceTenStep.jsp

NACA is free and they will do all the negotiation for you...be patient, they are very busy, but if you get an auction date, they will expedite your package.

[deanna]

your loan has to be held by Fannie Mae or Freddie MAC for HAMP program

[Moe Bedard]

deanna,



Not for the modification.....................only for the refi.

The refinancing option is only available for conforming loans owned or securitized by Fannie Mae and Freddie Mac.

Most conventional loans including prime, subprime, adjustable, loans owned by lenders and loans in securities are eligible for a Home Affordable Modification.

[PERSISTENT32]

thank you for clearing that up. I thought I qualified for the loan modification program. I knew I didn't qualify for the refi. I also submitted a QWR so they will delay reporting on my credit until they send my information.

[raharkne]

When I got home today, I found a letter delivered via UPS from Wachovia. asking me to send in more docs and begin the three month trial IF I QUALIFY. Asks me to send my first trial payment as well. Am going to read this over VERY carefully. Lots of ifs, but I am very optimistic. No details of interest rate or loan balance, but estimated payment will be reduced by $271 and still includes escrow. It includes the past due escrow amount to be repaid monthly over 5 yearsHas anyone started this yet?

[TampaEddie]

Originally Posted by raharkne

but estimated payment will be reduced by $271 and still includes escrow. It includes the past due escrow amount to be repaid monthly over 5 yearsHas anyone started this yet?

Will this be better than going through the Obama plan and having your mortgage pmts reduced to 31% of your DTI?

[FireandRain]

Tampa Eddie raises a great question and one that Im wondering about as well. Im with Wachovia pick a pay, 4 months behind, received the letter last week indicating that Wachovia would be sending me a certified letter regarding modification programs,etc... I havent received the letter yet, but Im wondering if the Obama Home Affordable program may be a better deal than what Wachovia will offer via their "MAP" program".... Here's the BIG question in my opinion. If we accept the terms of the Wachovia MAP modification, will we still be considered in the near future for the more aggressive Home Affordable Modification? If we accept the MAP modification from Wachovia will this acceptance DISQUALIFY us for the Home Affordable?

Obviously, being 4 moths behind, I don't want to lose my house waiting around for a better offer, but much has been said about Wachovia/Wells Fargo's "last ditch" efforts with these MAP mod offers instead of having to face a bigger potential loss if they have to offer a modification which follows the stricter guidlines (mainly 31% DTI) of the Home Affordable program.

Anyone with any ideas or informed speculation about this issue?

Thanks!

[emfjs]

I've been wondering about this as well. Especially since I've seen some of the MAP interest rates top out at 6.5 after 6 years which is still high. That 4.7 I just saw in another thread looked very encouraging however! I am wondering about the principal reductions I was reading about a while back, I guess they are not doing those anymore? I just wish there was a standard they had to go by. This waiting is killing me!

[Nathanal6]

Almost. Purchased on November 30th.

[PERSISTENT32]

I received the same thing raharkne received via UPS about the trial pay period. I signed the paperwork and called today to inform them I will make my first payment on June 26th for the July 1st. I am sending the documentation via UPS.

[raharkne]

What bothers me is that it said my payments were due 7/1, 8/1 and 9/1. But the letter said I had to respond with my first payment by 5/30. I sent the payment, but now don't know if I wait to make the second payment 8/1...if it's considered on time.

[PERSISTENT32]

I called for an extension on my first payment. I called loss mitigation and sent a letter along with my packet and informed them I will make my first payment on June 26th. Prior to July 1st. I read on the treasury website banks have to start the modification process by 3rd quarter. Did you read on the last page of the documents about "if my final two trial period payments are received by Wachovia Mortgage, FSB after the close of business on the 15th calendar day of the last month of the Trial Period but before the end of the Trial Period, I agree that the Trial Period shall be extended by one calendar month (the Additional Trial Period)"....

[raharkne]

Yes....I know I am not stupid...but that totally confused me.....what does that mean??
By the way, I got my copy of the trial mod back today, signed by the bank!

[emfjs]

I just got a mod today from Wachovia, in the agreement it said mail the first payment by June, 12 but on the second page it stated the first payment was due 8/1 so I called and was told the payment I mailed would be applied for the 8/1 payment and my next payment would be due 9/1. That was good news to me. I'm sure yours is the same way.

[raharkne]

Thanks, that makes me feel better....

[drsven]

After 13 months of negotiations with Wachovia, my former World Savings "Pick-A-Payment" COSI loan has finally been modified. Like many others, I had been making neg-am and/or interest only payments for almost 5 years on my mortgage.

When I purchased my home I had put down a traditional 20% down payment and I never pulled a HELOC, or second on the property.

My loss in equity was due to the Neg-Am payments I had been making and the current market conditions (California, Bay Area).

I thought dealing with Wachovia was a lost cause. One day out of the blue I received a phone call from them offering assistance—2 weeks later I had a modification offer in hand.

At the time the modification was offered my loan was current. In 2008 my mortgage had become 60 days late but I brought the loan current late, Feb. 2009.

I now have a 40 year mortgage with a starting rate of 4.39% with .25 point increases annually, and at year 6 reach 6.39% (final rate). I also received a 10% principal reduction. Years 1-6 I have a payment option of interest only or P&I—beginning year 7 P&I payment only.

Wachovia required a phone interview (for monthly expenses, assets, etc.), copies of my Federal 2008 tax returns and a current P&L statement for my business (I'm self employed).

I'm very happy with the terms Wachovia offered. I never expected a principal reduction, I was simply asking for affordable monthly payments.
Every situation is unique, and if it makes sense for both parties I'm sure they will work with you.

It may take a while to get your modification, be patient and don't get discouraged.

[PERSISTENT32]

Originally Posted by raharkne

Yes....I know I am not stupid...but that totally confused me.....what does that mean??
By the way, I got my copy of the trial mod back today, signed by the bank!

Basically if you don't submit your 2nd and 3rd payment on time they will extend your trial period by one month. The best thing to do is pay early so they will not have any issues. I am sending my payments via Western Union so I will have a MCN (money control number) I don't want them telling me they didn't receive it on time and blah blah blah.

[reinforcer17]

I received my loan modification letter in the mail last week. While I am cautiously optimistic about it, I am also a little hesitant about the whole process. Before I go into the conditions of the new loan I'll explain why I am seeking a modification. Back in the summer of '07, my wife and I decided to move out of our apartment and by a house. Soon after we made closing, we found out that she was pregnant. Our budget was already tight at that time and has just gotten tighter. We can never been charged any late fees as we have always paid before the 15th of the month. Somehow we have been able to keep up with it but it is just too tight and we have no breathing room.

Anyway, we have a 30 year fixed rate at 6.375% and we are paying $1895/month including escrow. The letter said that our new payment would be $1671. However, no terms were really disclosed in the package. Also, it said that we were short $1100 in our escrow account, while we currently have a balance of $3000. It also said that if my payment was lower than my current payment during the trial period, the difference would be tacked on to the principal.

After speaking with a customer service agent I was able to get the full details of the modification. I will still have the remaining 28 years left on my loan. The first 5 years will be at an interest rate of 4.375%. From years 5 to 10, it will slowly increase from 4.375% to 5.5%. From year 10 on it will be fixed at 5.5%.

I was under the impression that a modification would have no fees. I currently owe $223000 on my loan. The representative said that my new loan balance would $228500, especially since I am current with my payments. To me, this does not make any sense. Also, I am curious to see what kind of amortization schedule I receive. I am hoping this is not some kind of balloon loan. I am also aware though that you can get a principal reduction of up to $5000 after 5 years so that would be nice.

Ultimately, I want this modification to make sense for me both now and 5 years down the line. Since, my family and I are not sure of if we will stay or be able to afford a bigger house by then, I do not want to end up owing more on my mortgage in 5 years than if I would have stuck with the current terms of the loan.

So I'm hoping someone can help clarify some things or may have went through the process.

1. Would the amortization schedule reflect that of an adjustable rate mortgage or is this some kind of negative arm modification for the first few years.
2. Under the MHA plan, are they allowed to add $5500 to the current princial amount?
3. How can they determine a shortage of $1100 in my escrow account when there is a balance of $3000?
4. Are there any negative implications to your credit score by receiving a modification? Does it just look like a refi on your credit report?

[OTDave]

I had the same world savings loan as drsven. We got foreclosure notices about a month ago.
Today we got the UPS delivered proposal from wachovia.There was no offer of principle reduction. The original loan was for 629k and now its 752. interest rate in the offer was 4.5% (better than it was).
2 weeks ago we got a letter from them offering a (cram-down) to 692k and a rate of 5.4% and few details besides that, when I called back then they said to ignore the first letter and that the underwriters were working on it.

Today I called and talked to them and told the lady that a 31% payment was substantially less than their proposal. She said the interest only payment made it less. I said that that wasn't a payment then was it, especially with no taxes and insurance. Like the others the payment adjusted up a grand a month in ten years.
I her asked how I could enroll in the HAMP program. She said they are starting it next month and some of their people were taking classes for it and this offer was not part of it.
I said that I didn't see much of an improvement over our old loan and asked if I could appeal. She told me that was their best offer and if I didn't return it signed next week it was off the table.
I was never asked for any kind of a hardship statement even though my wife lost her job last year.
I know that our balance is over the 729k now so we may not qualify for the 2%.
If anyone knows our options I am cautious and curious about our next step.
Thanks
Dave