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Wells Fargo To Extend Its Loan Modification Programs to Wachovia/World Savings

January 27th, 2009
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With the Dec. 31, 2008 completion of the Wells Fargo / Wachovia merger, Wells Fargo has begun to aggressively use current streamlined approaches and new customized solutions to avoid preventable foreclosures for Wachovia mortgage customers. In total, 478,000 Wachovia customers – including those with Wachovia Pick-a-Payment loans – will have access to the program, primarily those whose loans are delinquent or are likely to become delinquent will be eligible for assistance. Given changing economic factors, the exact number of customers expected to be helped in this approximate $120 billion portfolio cannot be provided. Customers with loans being referred to foreclosure or that are in foreclosure will receive an extension until Feb. 28, 2009 to allow them time to contact and work with Wells Fargo on the new solution most appropriate for their circumstances. 

“As the ‘investor’ for these loans, we are rapidly designing programs to help these customers,” said Mike Heid, co-president of Wells Fargo Home Mortgage. “For those at-risk, we will offer combinations of term extensions of up to 40 years, interest rate reductions, charge no interest on a portion of the principal for some period of time and, in geographies with substantial property value declines, we will even use permanent principal reductions.”

Heid said the goal of any loan modification is to achieve sustainable and affordable mortgage payments generally targeting a 38 percent mortgage payment-to-income ratio. The company will continue to work case-by-case with all at-risk customers to understand their financial situations to determine if lower levels may be appropriate.

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Some strapped metro Atlanta homeowners get break

November 29th, 2008
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Tim Collins finds himself living a national crisis.

First he lost his job when his company moved. Then he fell behind in his mortgage and faced foreclosure.

Now, he’s rebuilding his finances thanks to a last-minute deal with his mortgage company to rework his debt and lower his interest and monthly payments.

“You hear all these tales about home ownership being the American dream,” Collins said. “Honestly, it will shorten your life span.”

Collins can be thankful for at least one thing — his timing.

Had he faced foreclosure as little as six months ago, Collins’ mortgage holder might not have been nearly so willing to work with him. However, over the past 30 days government-run mortgage giants Fannie Mae and Freddie Mac and major lenders such as Citibank and JPMorgan Chase & Co. have come up with programs to shave home payments by temporarily reducing interest and extending loan terms.

Experts say those programs can save some of the owners and properties nearing foreclosure in metro Atlanta.

Amber Willis, a counselor with D&E, an agency that advises homeowners in crisis, said she’s recently noticed a dramatic change in the willingness of many major lenders to help folks like Collins.

“Earlier in the year, it was harder,” Willis said. “More lenders are finding creative ways to keep people in their homes.”

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