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Wachovia announced this summer it would stop offering pick and pay loans, but that wasn’t soon enough for thousands of homeowners like Marie, who are already in those loans.
Citigroup did not return our calls on Monday seeking comment about what it will do with the existing loans and Wachovia said it was too early to tell.
Regardless, Kevin Stein of the San Francisco based California Reinvestment Coalition said anyone in negotiations to make their payments more affordable should continue.
“If folks have entered into agreements, or work out agreements with Wachovia, they should be fine. If people are negotiating agreements with Wachovia they should continue to do so,” said Stein.
Loan modifications are something both the governor and President Bush have requested of all mortgage lenders. Wachovia told 7 On Your Side it would offer a loan modification to Marie. Housing advocates, however, say the agreement did nothing to reduce her monthly payments or long term debt. It just restructured the loan.
Still, Marie was facing foreclosure and felt she had no choice but to accept the offer.
Read more from ABC San Francisco News
