Wachovia Loan Modification Waste of Time Nationwide

I am too am a victim of the World Savings predatory lending practices and unknowingly ended up with a negative amortization loan.  The way they explained the percentage rate was that it would start out at a low rate and it would only increase once per year until the 7th year at which point it would cap out at 7.5%.  At the time, rates were in the 6.25% area, so I figured I was trading off a higher rate further down the road for a lower introductory rate.

What they did not tell me, is that my payment was figured on this lower rate.  The actual interest rate was completely separate and was a variable rate at almost 9%.  So the difference between the interest due, calculated at the variable 8.xx% and my low 4.1% payment rate, was added on to the principle.  Thus my mortgage was going up!  I called World Savings immediately and they informed me there was nothing I could do until after my 3rd year; at which point I can refinance.

Then Wachovia takes over World Savings and the housing market/Wall St collapse takes place.  At this point I am 2 years into the mortgage and my mortgage principle has gone up $14,000.  I called Wachovia several times asking to refinance the mortgage.  I got a bit of a run around until finally I had mortgage paperwork in my mailbox and they scheduled an appraisal.  The appraiser came ,did his thing and left.  I called Wachovia a week later and they informed me that the Loan Application was canceled.  I asked them why.  They said I called them and canceled it!!!  I informed them I did not call them and I asked them what the appraisal was and they would not tell me.  I called the appraiser and he could not tell me either b/c it was paid for by Wachovia.  So it is clear that I owe more than the property is worth and they do not want to forgive any principle in order to re-negotiate a new mortgage.

Now 3.5 years in, I am finally paying principle.  Ironically, this might work out in my favor as my interest rate is now 6.1%.  It is amortized bi-weekly, and I pay bi-weekly.  So I should have it paid off in 21 more years, even with the negative start.  That is so long as I can afford to make payments and stay current.

For those of you facing foreclosure.  You need to know 3 words.  "Show The Note".  It is your only weapon against these banks and their fraudulent attempts to shame you, damage your credit and steal your home.  Fight Back!  Google "Show The Note".   http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/

Hi Angry

I am currently going through the same exact situation you went through. Appraissal, loan approved, then in underwriting, then coditions, then enied, I appealed, then denied........Just like you I have the income, debt to income ratio is 37%. They requested a lot of information which I provided and they kept asking for more once they had ran out information to request they got transcripts of my tax returns from the IRS and started picking them and started to make a big deal about a rental property that I had, I explained and provided information to them indicating that I was only on the deed but not on the mortgage note.

After I provided them with a copy of the mortgage documents showing that I am not on the note they said that I might be at some point in time, I then asked them to show me where that mortgage showed on my credit report but they said it was irrelevant since credit reports are not accurate (only when they use it to jack up our interest rate) therefore they could not rely on them. To make a long story short I started the same process in Septemebr 2008 and we are now in February and I still have not resolved anything but I plan to keep calling untill I get someone who is willing to help, just keep trying Angry.

Hi Vince, If you have not done so already, find out about an FHA or FNMA reverse mortgage. Contact TD Ameritrade and ask a rep to refer you somewhere local to get information.

Wachovia's not going to help you. And I've got news regarding the bail out - the money doesn't come from taxpayers. (I don't remember paying for the S&L bailout 15 years ago, do you?) but that's another story. check it out here www mosereconomics dot com. :-D

I read the report: Wachovia Loan Modification Waste of Time, right after I wrote the following letter which I am sending to several newspapers. I thought Angry in Cinnaminson was standing over my shoulders reading my letter. To Angry:IF YOU WOULD LIKE TO INSTITUTE A CLASS ACTION SUIT AGAINST WACHOVIA I AM WILLING.

Anyway this is my story:

The government gave Wachovia taxpayers money to help bail out mortgages, I am one of those taxpayers, and Wachovia won't help me. I am 65 years old and lost my job in August 2007. I have no pension, am collecting unemployment and just received my first social security check. I have been paying my mortgage, on time, every month from my savings but the well is running dry.

My original mortgage with World Savings bank was transferred to Wachovia after the buyout. I always read that you should contact your bank before you get into trouble so I contacted Wachovia CEO Robert Steel's office to see if Wachovia could help me. He referred me to his Executive Associate who in turn passed me to someone in the loan modification department. I explained my situation to her, she looked into it, and called me the next day saying that without a job they couldn't help me. I told her I wasn't looking for a handout I just wanted my interest rate adjusted to the prevailing lower rate to help me through a tough period.

She told me that without a job I couldn't document how I could make the payments so I didn't qualify for a rate modification but there may be a program in a month or two that I would qualify for. I told her that I had been making payments for 16 months out of savings and they didn't question where the money was coming from but now that I asked for some help I had to prove I could make the payments. Ironic coming from a company that won't tell the government how they are going to utilize the bailout money that my tax dollars contributed to.

I told her that since they didn't want to help that perhaps I should stop making payments, get three months behind in my mortgage, and then ask for help before going into foreclosure. She said she couldn't advise me to do that but hinted that I would probably get help at that time. Two weeks AFTER they turned me down they checked my credit report and told me I was being turned down because of negative information.

Vince

Scotch Plains, New Jersey