Wells Fargo/Wachovia/World Savings Pick-A-Pay

[brighteyes]

Okay, I'm so frustrated and mad and no one knows anything!

I have know about the Wells Fargo/Wachovia/World Savings lawsuit for almost 2 years, but it wasn't until the last couple of months that things were actually settled. I have called Wachovia and Wells Fargo a million times and no one knows anything about the lawsuit. I have pages and pages of numbers and people to contact and no one can give me any direction.
I found an article today that read;

Under the agreement announced today (this was posted on 10/2009), Wells Fargo will make a number of substantial servicing commitments for its POA borrowers. These include:

* Ensuring adequately staffed help lines to serve consumers, including Spanish-speaking consumers.
* Providing a single, primary point of contact to assist borrowers seeking modifications under this Assurance.
* Making decisions on modifications within 30 calendar days of receiving a complete application.
* Establishing a formal second look or appeal process for borrowers who are turned down for a modification.
* More clearly communicating with borrowers to avoid confusion during this process.

Uh, obviously it's not happening! This is the only thing that might save our home and no one seems to know about it. Anyone here know about this?

I tired to post the links, but I guess I don't have enough 'posts' to be allowed that option. So, type in arizona wells fargo wachovia pick-a-pay to google, you'll see a million different sites. The ones I used are from getoutofdebt DOT org and azag DOT gov

[Wantmypeace]

This is the first I've heard of it. Is this only Arizona or nationwide? My first is Wells Fargo, and I'm waiting for a "packet" to apply for the modification. Hmm....

[brighteyes]

The states included in this assurance are Florida, Arizona, Colorado, New Jersey, Washington, Texas, Illinois and Nevada.

Allegedly, Wachovia Corporation and Golden West Corporation failed to fully explain that the minimum payment due in the first years of the loan would not cover the full amount of accrued interest, which in turn would increase the amount of the loan, or negatively amortize the loan. Borrowers eventually faced higher monthly payments, as well as higher loan balances, when they began making full monthly payments.

I heard about this 2 years ago when we were signing our modification papers with Wells Fargo to "help convert over to Wells Fargo". What I didn't know, until I scoured the internet, is that there was a lawsuit already in the works. I am mad because they acted like they granted me such a special privilege to lower my interest rate to 4.5% fixed for 30 years. I was never told what options were available to me with the 'first' assistance program that Wells Fargo offered (which are similar to what they are offering in this assurance). It says in this assurance that if you did the MAP1 program that you don't qualify for the MAP2R program. I feel lied to! My payment went up $1000 a month with the Pay Option ARM (Pick-A-Pay) and they only knocked off $100 with the 'new and improved' interest rate. I am mad that I know I'm not the only one they have done this too.
My mortgage went from 406k to 502k in less than 3 years! I was told my the guy who sold us this pathetic loan that we would pay this off so much faster than a conventional loan, just pay every other week. Oh your house will always be appreciating, so you'll never owe more than it's worth. Gosh, so young and so dumb!



Below is a blurb from Washington states Attorney Generals website. There are longer .pdf's throughout the internet that pertain to the above mentioned states. They are about 28 pages long.

Background: Washington and seven other states reached a settlement with Wells Fargo Bank that provides loan modifications for residents in their states who obtained problematic mortgages from Wachovia Bank and Golden West Corp., which did business as World Savings Bank.

Eligibility: The agreement provides loan modifications for borrowers who received "Pick-A-Pay" option adjustable-rate morgages through Wachovia or through Golden West Corp., which did business as World Savings Bank. It does NOT apply to other mortgages obtained from Wells Fargo.

The agreement provides that between Dec.1, 2010, and June 30, 2013, 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). If the borrower cannot qualify under HAMP or elects not to accept a HAMP modification, Wells Fargo will consider the borrower for its new modification program, known as MAP2R.

Modified loan terms will vary according to the circumstances of the borrower but can include principal forgiveness, loan extension, interest rate reduction and principal forbearance (which gives the borrower additional time to pay off the loan principal). Borrowers who remain current on their modified payments over three years will be able to earn additional principal forgiveness. Borrowers who qualify may also convert into a fixed-rate loan.

Under the agreement, Wells Fargo also makes a number of substantial servicing commitments for borrowers with pay option loans. These include:

* Ensuring adequately staffed help lines to serve consumers, including those who speak Spanish.
* Providing a single, primary point of contact to assist borrowers seeking modifications under the states’ agreement.
* Making decisions on modifications within 30 days of receiving a complete application.
* Establishing a formal second look or appeal process for borrowers who are turned down for a modification.
* Offering other foreclosure alternatives, including short sale, deed-in-lieu and relocation assistance.

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.

Foreclosure Relief: The settlement also includes $1.6 million for a foreclosure relief fund to be paid to the Washington Attorney General’s Office. The money could be used to provide refunds to individuals who lost homes or to assist with the state’s efforts to prevent or mitigate foreclosures. That has yet to be determined.

I am bound and determined to get what I want! If I can lower/eliminate our second mortgage under this or even get 'paid' to short-sell or died-in-lieu, I'm all for it!!!

I am looking for people who have been contacted by Wells Fargo/Wachovia in regards to this so I can actually find out who the 'Compliance Monitor' is. This is the person that knows what is suppose to be happening, since no one else knows.

[Wantmypeace]

Wow! You've really been through it. I'm in CA, so this doesn't apply to me, and I'm just starting the mod process with them. I will keep my "eyes wide open" though, because it appears that you can't trust ANY BANK. I'm sorry for the stress you're having to go through. This must be horrific!

[brighteyes]

Wow! You've really been through it. I'm in CA, so this doesn't apply to me, and I'm just starting the mod process with them. I will keep my "eyes wide open" though, because it appears that you can't trust ANY BANK. I'm sorry for the stress you're having to go through. This must be horrific!

You can!!!!!!!!!! California is part of the assurance plan. If your loan came from Wachovia or World Savings Pick-A-Payment, call and bug them!!!!!!!!!!!!!

Wells Fargo Enhances Mortgage Assistance for At-Risk Wachovia Pick-a-Payment Customers in California
Company also will contribute $33 million for customer outreach and foreclosure prevention efforts
DES MOINES, Iowa — December 20, 2010
Wells Fargo & Co. (NYSE: WFC) announced today that beginning Dec. 20, 2010 through June 30, 2013, at-risk Wachovia Pick-a-Payment customers in California may be eligible to earn principal forgiveness by making on-time mortgage payments. The company also will contribute $33 million to the state to enlist help in customer outreach, and to prevent or mitigate the impacts of foreclosures in California communities.
The program is the result of an assurance agreement between Wells Fargo and California Attorney General Jerry Brown related to the marketing and origination practices World Savings Bank (a subsidiary of Golden West Financial) and Wachovia used for pay option mortgages prior to Wachovia’s merger with Wells Fargo on Dec. 31, 2008. It is an extension of Wells Fargo’s ongoing efforts to assist at-risk Wachovia Pick-a-Payment customers with home payment relief, which began immediately following the merger.
These efforts have included modifications designed to make home ownership sustainable using combination of interest rate reductions, term extensions, and principal forgiveness. The company also has hosted three large-scale Home Preservation Workshops in California in Los Angeles, Oakland and Ontario, and opened 15 Home Preservation Centers across the state to provide at-risk customers with the opportunity to meet face-to-face with a home preservation specialist.
“The majority of Wachovia’s Pick-a-Payment customers reside in California,” said Mike Heid, co-president of Wells Fargo Home Mortgage. “We’re pleased that going forward the attorney general’s office will assist with outreach, so that we can continue to work with as many customers as possible on the options available to them to prevent foreclosures.”
From January 2009 through November 2010, the company has extended significant home payment relief to more than 50,000 at-risk Wachovia Pick-a-Payment customers in California. The modifications have included some combination of interest rate reductions, term extensions, forgiveness on tax and insurances advances, and more than $2.9 billion in principal forgiveness. From Dec. 20, 2010 through June 30, 2013 – the period of the assurance agreement – the total amount of incremental relief for customers could be as much as $2.4 billion depending on the economy and individual borrower circumstances. This amount is consistent with the company’s prior expectations for loss mitigation in the California Pick-a-Payment portfolio, which was marked down in purchase accounting at the time of the Wachovia merger.
California joins 9 other states that have entered into similar agreements with Wells Fargo: Arizona, Colorado, Kansas, Florida, Illinois, Nevada, New Jersey, Texas and Washington.
The company will contact customers likely to be eligible for the new program via letters, and will maintain a dedicated helpline – including Spanish-speaking specialists – to assist borrowers. Homeowners who already have received a modification will not be eligible for the new program. Wells Fargo customers who originally took out pay option mortgages through Golden West or Wachovia who are looking for information about the loan modification program can call 888-565-1422.
Forward-Looking Statements
This news release contains forward-looking statements about our future financial performance and business, including expectations for loss mitigation in our Pick-a-Payment portfolio. Forward-looking statements speak only as of the date made, and we do not undertake to update them. Actual results may vary materially from the expectations described in the news release. For a description of factors that could cause actual results to differ materially from expectations, please refer to our reports filed with the Securities and Exchange Commission available at www DOT sec DOT gov.
About Wells Fargo
Wells Fargo Home Mortgage is the nation’s leading mortgage lender and services one of every six mortgage loans in the nation. A division of Wells Fargo Bank, N.A., it has a national presence in mortgage stores and banking stores, and also serves the home financing needs of customers nationwide through its call centers, Internet presence and third-party production channels.

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 10,000 banking stores, 12,000 ATMs, the Internet (wellsfargo DOT com and wachovia DOT com), and other distribution channels across North America and internationally. With more than 278,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked #19 on Fortune’s 2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

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