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Mortgage help for Wachovia and World Savings borrowers

Mortgage help for Wachovia and World Savings borrowers

(Housing and Lending, Refunds and Settlements) Permanent link

Help is available for Washington residents who obtained problematic mortgages from Wachovia Bank and Golden West Corp., which did business as World Savings Bank. At least 400 Washington borrowers who received "Pick-A-Pay" payment option adjustable-rate mortgages will be eligible for loan modifications that will provide more than $29 million in mortgage relief, under a settlement with attorneys general from eight states. This sum includes nearly $12 million in principal forgiveness.

The agreement is the latest in a series of efforts by the attorneys general to help struggling homeowners. It also includes $1.6 million for a foreclosure relief fund to be paid to the Washington Attorney General’s Office.

The Washington Attorney General’s Office served on the executive committee that negotiated the agreement with Wells Fargo, which purchased Wachovia and acquired its subsidiary, Golden West, at the end of 2008. The states claimed that “Pick-A-Pay” loans offered by Wachovia and Golden West/World Savings Bank violated consumer protection laws because they expose borrowers to substantial economic risks that weren’t adequately disclosed.

“The relief offered by this agreement with Wells Fargo comes at a critical time for borrowers who are underwater and their neighbors, whose housing prices would be adversely affected by a foreclosure next door,” McKenna said.

Wells Fargo will offer modifications to qualified borrowers who are either 60 days delinquent or facing imminent default. Borrowers will first be considered for the federal Home Affordable Modification Program (HAMP). Wells Fargo customers who originally took out mortgages through Wachovia or Golden West/World Savings Bank can call 1-888-565-1422 for more information about the program. For additional details, see today's news release and hear AG McKenna talk about the settlement in a news conference earlier today.



Posted by Kristin Alexander All Consuming Blog Moderator at 10/06/2010 04:30:07 PM | 

We called Wells Fargo and they don't know us from our Wachovia loan no. Wachovia is no help atall and only stalls us when we speak to Cust. Service.
[ALL CONSUMING MODERATOR'S REPLY: Please mail them documents that show they have your loan. That should expedite the process – although a modification can still take quite a while. I assume you already called this number, but just in case: Wells Fargo customers who originally took out mortgages through Wachovia or Golden West/World Savings Bank can call 1-888-565-1422 for more information about the program. Thanks, Kristin.]
Posted by: Rodney Mueller ( Email ) at 10/22/2010 7:00 PM

We tried the Hamp last year. They said we didn't make enough money. I explained that if they help, I would be able to stay in the home until I make enough money. SORRY! Now, a year later, you have this "settlement"? THEY SAID THE SAME THING! I don't understand the logic. If they change the loan, I'll not default before our income situation changes. They do nothing, I'm done! What kind of settlement is this?? I'm paying more than I'm supposed to, and you got a settlement? What setlement?? This is business as usual.
Posted by: Uldis Barenis ( Email ) at 12/8/2010 10:41 AM

I have tried 3 times over the past 1/2 years
to work out a modification with Wells Fargo. Thankfully I am not behind on my payment but when the intrest goes up. First they let my application sit until it was too old and I had to start again, then Then they said I didn't have enough income (HOWEVER I was making the payment) then I made too much... ? MOST people I have talked to there are very nice, but that dosen't solve my problem.
I WANT to keep my house, I WANT to pay my debts. I DONT" want to ruin my credit. but it seems like thats where they are pushing folks.
Arrrrgggg. It is very frustrating. All I want is to modify into a FIXED LOAN before the rates go through the roof. [ ALL CONSUMING MODERATOR'S RESPONSE: Nancy, sorry to hear about the problems. You may want to file a consumer complaint with our office.]
Posted by: Nancy Porteus ( Email ) at 2/1/2011 11:29 AM

I'm a mortgage originator with hundreds of WF clients. Many call for modification contact info. Can you provide that? [ALL CONSUMING MODERATOR'S RESPONSE: Larry, I can't tell whether your comment is legit or spam, designed to simply get your company's name online. I'm guessing it's the latter, so I've removed your business name. But if you have a legit need, please contact the Indiana Attorney General's Office or contact WF directly. Indiana was not part of our settlement.]
Posted by: Larry ( Email ) at 2/4/2011 9:57 PM

Nancy, I understand wholeheartedly. All I want to do is modify into a fixed rate. I was told by the loan officer when I refinanced into the World Savings mortgage that I ALWAYS had the option to convert to a fixed rate loan at any point in the future if I wanted. I cannot understand why Wachovia/Wells Fargo will not honor that option.
I just found out two days ago that my income is too high to qualify for a modification. This was my second attempt at a modification. I am praying that something will happen so that I can correct one of the biggest mistakes I have made with my finances. I guess that once I start to fall behind on my payments (thankfully, I have not yet) and default I may get some assistance. I will say this much.....the loan officer that "sold" the World savings mortgage to me was one hell of a salesperson.
Posted by: Anthony ( Email ) at 3/23/2011 9:17 PM

I too found out that I don't qualify for mortgage modification. However, we are glad the state of Washington and AG McKenna are helping some residents where they can. When my husband almost lost his job, I have made sure to stay informed of how all of this mortgage stuff works. If anything, this "crisis" has made more aware and grateful for the things we have. I encourage our representatives to continue to remember us little folks out here and to also stress to those in trouble to read as much as possible about the foreclosure process so it does not surprise you if it happens.
Posted by: Rudy ( Email ) at 5/18/2011 8:21 AM

I've contacted Wells Fargo several times. As most here can attest, it appears the customer service representative are well versed in giving you the run around. I was unemployed, but now can afford the monthly payment; however, Wells Fargo is asking for $20,000 initial payment. Any news when the settlement is going to be finalized? [ALL CONSUMING RESPONSE: Donald, the settlement was reached on Oct. 6, 2010, as noted in the blog post. Details on obtaining a loan modification are here: The only part that hasn't been finalized in the relief for those who lost homes. I hope that helps. You might also want to consult with a housing counselor: 1-877-894-HOME.]
Posted by: Donald Adams ( Email ) at 5/19/2011 12:42 PM

my first -of many- comments/complaints :
my signing the refi papers was based on 2 things:
1) what my monthly payment was going to be.
2) that they asumed the conditions of my previous loan. what this meant, was that taxes and insurance were to be part of my monthly payment.
what they did, was only pay part of them and when i finally was enlightened by the county that thousands were unpaid, wachovia covered the late fines, but increased my monthlies by hundreds. this is only part one on my list. please stay tuned for more brian wasrner [ALL CONSUMING RESPONSE: Brian, Your comments are welcome but please know that comments are not processed as complaints. To file a complaint, you must click on the "consumer complaint" button in the upper right corner. Thanks.]
Posted by: brian warner ( Email ) at 5/26/2011 12:37 PM

I am glad many states are stepping in and helping the residents of their states with mortgage related things. Hopefully things like mortgage modification will help in the long run.
Posted by: Stacy ( Email ) at 5/28/2012 9:39 AM

Wells did under 222 modifications for these pick a pay customers. There is now a second class action suit BernsWeiss filed for not doing modifications. They made 50 mill first time and will probably make another 50 mill. Homeowners got 187.00. Breach of settlement agreement by Wells Fargo means nothing to the courts. Sad.
Posted by: Cynthia ( Email ) at 3/21/2013 11:07 AM

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