OPTION ARM LOAN MODIFICATION WITH WACHOVIA ANY INFO?

Dud? Joined: 10 Apr 2008 Posts: 21

Guys,
l have a client who has an option arm loan with wachovia, his property value is 62% lower than what he paid for the property. He wants to get out of the option arm into a fixed loan product. He is not behind on his mortgage becuase he is pretty particular about keeping his scores up there so he does everything he can to cough up the payments every month just to stay clean, he has a 768 fico. He is struggling with his payments although he makes good money.

Now, will wachovia do a loan modification for a customer like this? He needs one and really does not want to be in the option arm loan, its killing him and his balance keep going up. Any tips on how to get a loan mod for him through wachovia?
Has anyone done anything like this through wachovia? l know by virtue of him having an option arm loan he qualifies for a loan mod according to the government's new loan mod specs but how does he go about getting this done and is wachovia started doing modifications for clients with option arms? Thanks

Dud? Joined: 26 Nov 2008 Posts: 11 Location: All 50 States

Wachovia is activley doing loan modifications. Especially on all option arm products. If he would like to do it for free he probably could, it may take a while due to the sheer volume of Modifications Wachovia is facing right now but again its free. THe documentation he would need would be the same he would need for a refi. Paystubs, mtg coupon, etc. As well as a hardship letter and budget. It is considered a big hardship if he is cutting into his savings to save his home. Definitly a doable loan modification.

Best,

Chris

Dud? Joined: 10 Apr 2008 Posts: 21

Thanks Chris, l will try that route, ill share the outcome with you guys.
Phil

Dud? Joined: 10 Apr 2008 Posts: 21

Chris please check your pm. Thanks

Phil

Dud? Joined: 20 Dec 2008 Posts: 2

So what happened? Have you been able to get Wachovia to work with you? I am a home owner that has been trying to work with them for 6 months and they keep changing what they need. I have gone from 3 months over do to 6 months, because they won't take the money that I do have. This is a big difference, from 8K to 16K. I am in an Option Arm loan and at this point can make the payments, but I can't make up some of the missed payments. It seems as if I keep getting people on the phone that I end up knowing more about the loan and process than they do. I HAD a great credit score at the beginning of the year, but after this I don't think it's very high. I had done a stated income loan with 20% down, then had circumstances that made a snow ball affect from selling other properties that are now undervalued. There are other things that happened that affected my income and finances. I contacted the HUD approved Modification company that Wachovia told me to call and after our appointment she said that It should be easy for me to modify my loan, because I keep a good budget and have better circumstances than most. There are a lot more details that I can go over, but I'll do that when I see who can help me. Do I have any legal standing since I put 20% down in Feb. 2008? Thanks!

Dud? Joined: 10 Apr 2008 Posts: 21

Rnkshaff, wachovia is giving me the run around on this modification. This is what they essentially told me, they said they have two options for me and that l would have to try the first option and if it doesnt work then they will do the modification. The first option is : they will refi my loan into an FHA, they will break up the loan into two loans and give me 5.75% on the first one and give me 0% on the second , but l will be paying $200 a month mortgage on the second way anyway. They will do the appraisal for free and see how the value comes in at and take it from there.

This is where we are now, they sent discls and everything been signed and sent back to them, l am awaiting the appraiser to come do the appraisal. I do not want this refi BS they are giving me, all l wanted was to do a modification, when l called l told them l need a modification on my option arm but they kept giving me the run around and finally told me to go through this which l do not want. Does anyone know why they are doing this? l know they do not want to do the modification, but l cant understand why. Can anyone show me and give me a number that goes straight to a modification specialist at Wachovia? And does anyone have any tips or info on helping me get a modification with Wachovia? Thanks guys and gals.

Posted: Sun Dec 28, 2008 5:01 am

Wachyovia has just found out Wells does not want to close on the purchase til the end of '09... bleed the value may be the reason, but we will never know.

Mods are currently a problem... see the first paragraph for part of the reason.