wachovia neg-am pick a payment re-fi

[shacal228]

please help- here is my story:

i bought my first new home in 2007. I have a pick a payment loan and was incredibly naive. i was told my payment wouyld be $1600/month. with taxes it was $1800.00.

that was just fine for the first year. when my payment went up the following year it was $2006.00.

I could initially afford this because i won a large settlement and i put aside $30,000.00 to supplement my income. i began having problems when my children graduated (twins) etc. the money i sat aside began to dwindle to nothing.

i recently got a letter from wachovia because my payment will now be 2,337.00 due to my property taxes.

now i am down to $5,000.00 in savings and i earn about $2500.00 /month. at this point reality is biting me in the tush big time. i bit off much more than i could chew and i know i cannot pay the new note. and i just cant see myself giving wachovia my last bit of savings only to stay a few months more and still face forclosure.

i was about to walk away when i got another letter from wachovia. it said as a pick a pyment customer i should call for other options open to me. they said they want to get rid of these loans. to qualify i had to have a good FICO and be current.

here are my stats: FICO is 751
market value is 187,000.00
mortgage balance is 375,000.00
i paid 400,000.00 for the house
my down payment was 40,000.00
my taxes and insurance was not included but i did later include my taxes.
no late payments ever or missed payments (yet)

here is where i need help fast!
wachovia proposed i take out a second FHA loan at 6.625% intrest for 360 months at a 30 year fixed rate. for $181,390.00.
my monthly payment will be $1,500.00 roughly according to the good faith estimate. it includes a PMI and they pay all fees to close. this is a refinance and not a loan modification. if it sounds like i know what i am talking about dont be fooled- i dont.

i have learned on this site that a second is not good because it is a recourse loan. also i have learned that if it is a refinance and not a modification it is a recourse.
i have also called wachovia to ask what happens to the remainder of what i owe and what are the terms of it. i am waiting on a return call.

meanwhile they sent me a package pronto with all the documents to sign and they look much like a binding "contract" as opposed to an "application". they representative told me it was not binding and it was merely an application. they have stressed that i respond quickly to get my loan finished as soon as possible. i told the rep that i want an attourney to go over it before i sign it. she told me that they would still go ahead with things on their end and sent out an appraiser.

in the meantime i have asked for a 3 month forbearance and am waiting on approval. i am not attached to this house and my children are grown now. i am a full time nursing student and very soon i will be making lots of money. i regret that i may end up with bad credit, but i have embraced the fact that is the price i pay for making stupid choices.

i want to know if i should accept wachovia's offer or walk. if i walk, how should i do it?
april of 2009 will make it only 2 years since i have been here. the worst mistake of my life so far was getting into this house not being fully aware of what i was doing.
has anyone else got this offer from wachovia???

[Moe Bedard]

Hi shacal228,

Welcome to the forum and thank you for joining.............

In order to understand what you are up against in either accepting the refi or walking away..............you should go with your instinct on this one and go over the docs you received with a real esate attorney that also is well versed in the foreclosure laws of your state so that you would know what the recourse will be in either situation...............and then you will be able to make an informed decision from there...............just get all the facts first.........and then make the choice that is best for you personally.

[shacal228]

thanks for responding so quickly!
it just so happens that i just got off the phone with the contact person for this offer.

i still am not sure what the harm will be with a second. i did find out from him that the second will be due to be paid after 3 years and i wont get anything in writing about the terms until they process the application.
i also found out the following:
this would be an FHA secure loan
the second will be at 0% intrest
i will not be able to combine the two into one loan agian unless the value of the property goes up
i have a 3 day right of "recission?" if i dont like the terms
returning the packet does not bind me to anything- supposedly

[HopingtoFind]

Hello shacal228,

I am not understanding how anyone could offer you a second loan, if you have no equity in your house and are actually very much upside down...

You said that you owe $375k and the value of your property is $187K.
Something is not right IMO... What would they secure a second with?

As *** mentioned you should definitely talk to an attorney.

[shacal228]

they offered an FHA secured loan but i would begin paying the second in three years.
as i mentioned, i am not attached to this house and it looks like i will be walking away. i'm just trying to mentally prepare for the embarrassment, etc. and bad credit.

[shacal228]

i'm trying to find out if i will have to file for bankrupcy once my home is forclosed?
is it possible for me to walk away from my home without filing for bankrupcy? also, will my lender be able to call me at my job to collect on my defaulted loan?

[Moe Bedard]

To get a better understanding of what you may be up against..........post your question about walking away in this section of the forum and also look through the threads to see if your questions may have been answered as well, there is alot of info in that section regarding BK and walking away..........
Deed in Lieu of Foreclosure - Do You Need Help to Walk Away? - Loan Modification Forum - Loan Safe

[The Professor]

Please come over to the Walk Away forum *** has provided the link for. I'll be asking you a series of questions and I think you will shortly develop a better understanding of what makes sense based upon your circumstances.

Take care,

Daniel

[Majedesi]

shacal228
We were offered the same exact deal from Wachovia (see the thread below for details) and were ready to sign papers but suddenly they couldn't help us anymore and we have been unsuccessful since then to restart negotiations.
<O</Ohttp://www.loansafe.org/forum/stop-foreclosure-tell-us-your-story/4618-world-savings-pap-time-get-out.html<O</O
<O</O

What Wachovia office and personnel are you dealing with?<O</O

[shacal228]

i'm working with mark mohl and julie baptisa
mark is (704)590-0570 and julie is (904)475-5830.
so what are your next steps going to be? will you forclose without the deal?
did you think that was a good deal?

[caliking]

This sounds like the same deal Wachovia is SUPPOSEDLY trying to work out for me. The reason I say supposed is because they started the loan application in Oct 2008! I think they are full of CRAP. What refi takes this long???They are very vague on the phone & email, STILL haven't locked in a rate. The only concrete things they've said is that my loan is NOT underwater. The appraissal they did came in at 500,000. my existing loan balance is 469k. I have a pick-a-pay but only paid the minimum pymt once. So I don't currently have negative ammorization. My credit is just fine 699 & my DTI ratios are good, been on my job 15 yrs and have sufficient income to service loan. Never been late or skipped any payments. I really think Wachovia isn't trying to help ppl because, my refi should've been a slam-dunk & completed alongtime ago. Supposedly, my file is with the underwriter for FINAL approval and I should be getting a call anyday now to discuss a rate-lock!!!! Yea whatever....

[ericmcdo]

I am with Wachovia and have a pick a payment loan that originated with World Savings and I can only afford to pay the minnimum payment. The loan balance started at $714,000 in 2005 and is now at $794,000. I've never missed a payment. However I see in my loan docs that in August of 2015 the loan baloons and my paperwork says I need to pay 222 payments of like $8k for that year!

I called Wachovia directly and asked if they could modify my current loan (keep my payment amount but have it go towards P & I instead of the other way) and they told me since I could afford the minnimum payment of the current loan, and was never late on a payment, they couldn't help me.

I got the loan by using stated income back in the day when they gave away loans without even verifying income. I have a great credit score but I don't have the income to qualify for the loan amount so doing a refi is impossible at this point.

If Wachovia would just take my current loan amount and write me a 40 year fixed term at its current interest rate of 4.7%, my payment would stay the same and it would be a P & I payment.

Does anyone have advice on what I should do??

I do not want to sell the home, I'd like to stay here and pay it off. But I cannot afford more than my current payment of $3,500.

Thank you,

Eric

[shacal228]

if i were you i would stop paying now. sooner or later you will end up in really hot water. stop making those high payments now and face facts that your credit score will take a hit. the bank WILL work with y ou if you stop paying. that is really the only way they will. sont keep throwing good money after bad. you can take advantage of all these deals wachovia is giving those who stop paying.
my deal was a 20% principle forgiveness, forgiveness on all missed payments, lower intrest rate at 4.65 and 40 years instead of 30. i previously had a pick a pay too.

[ericmcdo]

Yah, I was told that by some other people but a real estate attorney told me that would be the dumbest thing for me to do (stop paying).

The loan balance is 794k but the value is 960k. I'm not underwater yet. But I want to keep this house and not move!

So I would think Wachovia would tell me to just sell if I stopped making payments or want to take over the house in foreclosure so they could make a buck.

I don't know what my reasoning would be to them if I stopped making payments.

Any more thoughts?

Thanks for the help!

[AZhelpneeded]

We just got our loan mod from Wachovia a few weeks ago. I'm not sure how they would go about doing a loan mod with you sice you're current AND you're not underwater on the value. Everything we've been told by them is that you have to be 31 days late before they will even consider you for a mod. We had always remained current until May 2009 whe we decided not pay and we did get our modification. However, our loan was for $301,000 and the home is valued at about $240,000 - 250,000. We had that stupid pick-a-payment through World as well.

Have you tried calling the executive team 1-866-642-9407? I would keep calling because as you probably know, you get different answers from different people. We fianlly got a hold of soemone good and our mod was done in about 2 weeks.

If you refuse to miss a payment and can't qualify for a refi then I supose you only have a few options:

1. Wait and see if they roll out any programs for people who are current and not underwater on the value.

2. Sell the home.

Unfortunately, unless they roll out a program that you can fit into, you can't keep your good cradit And keep your home. I guess you'll hvae to decide which is more important to you......good credit or your home. The thing with credit is it can always be repaired and as to what I've seen so far, ours has did not go done nearly as much as I thought it would.

Hopefully, someone that's had luck with Wachovia that still had equity in their home can chime in.

[ericmcdo]

I have a loan with Wachovia and I have never missed a payment but I am in one of those neg am loans and have always made just the minnimum payment for the past 5 years, never late.

I contacted Wachovia about modifying my loan so I can keep my current minnimum payment amount but stop the loan balance from growing.

They said they needed some info to see if they can fit me into one of their loan modification programs. They asked me to fax them tax returns, bank statements, W-2's, etc. etc. I have been doing that and talking to the lady each day about it. She is saying I need to show more income in order to qualify but she would try to talk them when she submits it for consideration.

However, I noticed today Wachovia did not withdraw this month's mortgage payment on my current loan from my bank. I have auto withdrawal.

I am afraid that they are going deny me for the mod and then tell me I don't have enough income to support my current loan balance therefore I must sell, make a higher payment, or something worse than my current loan.

Is this possible?

Or can they jack my credit because I applied for a loan mod even if I get denied?

I assumed at the worst I'd be able keep my current loan if this mod got denied. I've never missed a payment and the house still has value.

Any thoughts out there??

[ramersrus]

Originally Posted by AZhelpneeded

We just got our loan mod from Wachovia a few weeks ago. I'm not sure how they would go about doing a loan mod with you sice you're current AND you're not underwater on the value. Everything we've been told by them is that you have to be 31 days late before they will even consider you for a mod. We had always remained current until May 2009 whe we decided not pay and we did get our modification. However, our loan was for $301,000 and the home is valued at about $240,000 - 250,000. We had that stupid pick-a-payment through World as well.

Have you tried calling the executive team 1-866-642-9407? I would keep calling because as you probably know, you get different answers from different people. We fianlly got a hold of soemone good and our mod was done in about 2 weeks.

If you refuse to miss a payment and can't qualify for a refi then I supose you only have a few options:

1. Wait and see if they roll out any programs for people who are current and not underwater on the value.

2. Sell the home.

Unfortunately, unless they roll out a program that you can fit into, you can't keep your good cradit And keep your home. I guess you'll hvae to decide which is more important to you......good credit or your home. The thing with credit is it can always be repaired and as to what I've seen so far, ours has did not go done nearly as much as I thought it would.

Hopefully, someone that's had luck with Wachovia that still had equity in their home can chime in.

AZhelpneeded-what are the numbers for your modify? what was your old loan #s and what is the mod #s, want to see how it compares to our modify offer we received the other day. we were current on mortgage only a few days late. i was very persistent, i called twice a day and called office of president and 3 days after i called, a underwriter called me and gave offer over phone for MAP PROGRAM. We will get the packet in mail next week. thank you