Wells & Wachovia Suck! The Mortgage Servicing Follies Continue…

Wells Fargo CEO Stumpf worries that economy could cancel out his efforts to revive Wachovia and deal with toxic loans.

He should be worried and the investors that own these loans  should be more than worried. They should be in court suing Stumpf and these idiots for incompetent mortgage servicing practices. I have been writing about this for a long, long time and Wells continues to run their operations like the Wild, Wild West! Is anyone listening out there?

If you read the comments right here by Wells and Wachovia clients, you will see an army of angry homeowners trying to get a loan modification . You will also observe homeowners who are not getting the help they desperately need and deserve. Please look at this informal survey I did of Wachovia/Wells clients to see the proof.

A disturbing 84% of respondents said they are not getting the help the need.  And what does our government say to do? “Call your lender to get help!” Yeah RIGHT!

Is Wachovia really helping you? Total Voters: 341

• NO!!! They have given me the run around for months and I may lose my home because of these jerks. (84%, 285 Votes)
• I am a housing counselor and Moe is right on with his assessment of Wachovia and Wells Fargo. They are a nightmare to deal with. (12%, 42 Votes)
• Yes, they are helping me and have been great. I love Wachovia!!! (4%, 14 Votes)

BusinessWeek:

Lenders are reporting profits. Washington is finally dealing with banks’ toxic assets. Stocks have rallied somewhat. Is the worst over for big banks?

One of the industry’s healthiest players, Wells Fargo (WFC), isn’t celebrating just yet. Chief Executive John G. Stumpf’s main worries: the recession and unemployment. Stumpf is bolstering the bank’s books and making fresh loans. But a deep, prolonged downturn with double-digit unemployment could derail his plan to modify troubled mortgages and absorb Wachovia, the bank that Wells purchased for $15 billion in January. “This downturn is different,” says the 55-year-old banker. “It will define a generation.”

The economy remains a giant unknown for the entire industry. The government’s own “stress tests” for banks use 10% unemployment as the worst-case scenario. But a growing number of economists are predicting that the jobless figure could easily blow past that level in the next year. As unemployment rises, more borrowers run into trouble, leaving lenders to cope with the losses.

Read more from Business Week

1. Ja8869 on February 5th, 2009 4:18 pm (Edit)

   Hope Now has is now No Hope Now. We are with Wells Fargo and after dealing with Hope Now our home is in foreclosure and is now costing more to keep my house then before. Wells Fargo must be looking to get into the real estate business. Still fighting to keep it.

2. Ja8869 on February 5th, 2009 4:20 pm (Edit)

   I find it hard to understand how it got to this point. After talking with Hope Now, Wells Fargo has both my homes in foreclosure and making it hard for me to keep either property. It’s not as if I have abandoned the properties. I have contacted Wells Fargo and have supplied the documents Wells Fargo requested yet I continually get turned down regarding a loan modification due to the fact we have negative cash flow every month. How does Wells Fargo suppose I got into this position in the first place? If I had positive cash flow after paying all my bills and the mortgages I would pay them and not be in this position in the first place.

   When I first contacted Wells Fargo regarding my declining business andthatI would not be able to pay the mortgage for the month of October 2008, I was told by Wells Fargo to wait until the payment was late and then contact Wells Fargo. Wells Fargo then sent me information from Hope Now andHUD. HUD stated I could get some type of assistance if my mortgage was at least 4 months to 12 months behind. Wells Fargo foreclosed on my properties on the fourthmonth.

   If only I could receive $25 billion to get me through the tough times like Wells Fargo did.
   Now that Wells Fargo put my homes in foreclosure, Wells Fargo is charging me additional fees on top of what is already owed, making it even harder to save my property. It seems Wells Fargo is doing all it can to literally take my homes and have them listed on Foreclosure.com.

3. gloria centeno on February 5th, 2009 10:29 pm (Edit)

   after waiting for president obama to take office and be able to change from the bank bush at their discresion about helping people to keep their home, i don’t see nothing on the tart money to make the banks to comply mandatory and not at thier discretion to help people to stay in their home by reducing the principal to the real market value of the property,
   their loan modification is a joke, they are doing loan modification based on the pass value of the property which does not exist, and people won’t be able to refy or sell their home, so they going to be stack with this big payment for ever, this is not right , do something president obama , don’t forget about the million of people who vote for you with the hope that you will keep them in their homes,you will be hold accountable for the millions of people who will be on the street and in welfare, blaming you for not doing what you promised to keep the people on their homes.

4. melissa on February 8th, 2009 3:55 am (Edit)

   Why bail out the banks that put homeowners into predatory loans? Take for instance my case: In 2006, I had a credit score of 700, 20 percent to put down, and made good money, yet since the government decided to lax laws against predatory lending, I was put into an awful loan and didn’t even know it—thanks to my broker’s deceptive practices. I realized I had been royally taken as I was put into two piggy back loans with interest rates of seven and 12 percent ; plus it was a negative amortized loan on top of that. But, when I figured it out, three days before closing, it was too late to turn back and lose my money I already put down. I am not a stupid person; more a victim of a scam. But the story doesn’t end there. In fact, what followed with EMC was worse; a daily nightmare.

   Of course, my note was immediately sold to EMC mortgage servicing—then a subsidiary of Bear Stearns, now under JP Morgan. This is when the nightmare really began. Although I paid dutifully every month, EMC harassed me as much as six times a day trying to collect on a payment already debited from my account! I would fax proof of payment, and they would lose it. The next day, I get a call from a new person and the process repeated itself. This happened frequently even though I always paid my mortgage! When I asked them to stop calling (in writing and via phone) as I was at work, of course they didn’t. I had calls coming in before 8am even, and one lady even told me to shut up when I asked for a supervisor. Also, they have damaged my credit, misapplied payments and charged false late fees, and sent me three false default notices. EMC basically turned my life as upside down as the value of my house. Bear Stearns did try to modify, but the terms didn’t do anything to reverse the damages caused by this predatory and illegal loan coupled with severe harassment andirresponsible behavior from EMC. There is now an FTC order against EMC mortgage for their abusive practices, but I am yet to see my justice.
   Meanwhile, the politicians keep talking about modification programs, but we are yet to see a clear plan. What about modifying these predatory loans into affordable terms as we deserved in the first place? Why not give the good people who dutifully paid their loans a little respect. Watch how the economy will start to bounce back as homeowners, who are now upside down, now have a little wiggle room. This isn’t even a bailout for us; we are only demanding what was justly ours—a fair loan with equitable terms. It is time the government recognizes their role in this crisis and makes a clear, just plan. If we can bail out CEOs that make billions, why can’t the government even help the hard-working homeowners who did everything right and still were taken.

   Buying a home is supposed to be the American dream, yet for many of us, we have lost our health and happiness. I know that many of you, whom are victims of EMC, have called me daily with the same issues: give it time and we will prevail. Again, see all the sites and victims of this company; here is a prime example: http://video.google.com/videosearch?q=EMC+Mortgage+Corp.&sa=N&tab=ev#q=EMC+Mortgage+Corp.&sa=N&tab=ev&start=10
   Call your congress person, the Federal Trade Commission, the Better Business Bureau, and your State’s Attorney General and fight for justice. It seems to make sense to modify these loans to an equitable rate when the lenders will lose more money if they foreclose on us, or we end up having to short sale due to unacceptable loan terms. And we bailed out the lenders with our tax dollars, yet they are still so resistant to help us. This is not right. Do as I have done: write letters to the press, file every complaint that you can, anddon’t standfor EMC’s abusive practices that violate the Fair Debt Collection Practices Act as we have rights. I have countless files and records that show proof that EMC has not abided by these laws. Keep every conversation and email noted and as people across the USA have called and emailed me daily withhorror stories; know this not your fault. As we all band together and ask questions, soon unethical and predatory
   servicerssuch as EMC will be out of business. We, the Americans, who did not deserve these predatory loans to begin with, andtried to do the right thing by paying our mortgage monthly even as our principal skyrocketed under unfair terms like negative amortization and astronomical interest rates while our credit was defamed with false reporting, along with being emotionally accosted by EMC employees who claimed we did not pay when we did; andhad to spendhours during work time on the phone trying to prove that, yes, EMC did take my money, but we had to fax proof with bank statements, only to be hung up upon, or harassed by a new person the next day who had no clue where our money was—Yes, we lost our emotional and physical health, but understand that you are not alone. This is deception. Hopefully, with Obama in office, he will rectify the wrongs they have cost us—the wrongs that not only caused financial loss, but wrongs that hurt us down to the soul andmade us lose hope. Remember, we are good people, we did nothing wrong, even if you are a couple months behindthese lenders should understand the hardship we face these days with job loss, etc. Instead they belittled us in a sadistic fashion, and for most of us we suffered from EMC’s malpractice way before we ever even missed a payment. Just as my CPA said, he never saw such sloppy payment history that was so filled with subterfuge that, most likely, no average American could figure it out. Even he, a seasoned accountant tookweeks to read their statements, didn’t understandhow would we, the average consumer, would be able to understandtheirrecords. Yes, we are victims, but victims that must keep faith that one day justice will prevail. Please keep calling me and reading my articles. I will always try and help. I have talked to hundreds of you, who always paid on time, yet were slapped with false late fees and defaults and consistently told you that you did not pay at all, when of course, we did, I know that I still have FALSE credit errors on my report from EMC that has cost me dearly. I have not qualified for lower credit card rates and other things, andunbelievably this still rests on my report. I feel your pain EMC victims. Also demand to know who owns your note. My most recent modification papers said Wells Fargo now owns my first, but why was I never told, when asked? This is not fair. NO reduction in house value to current market value. NO adjustment on interest rate. No real help at all.Same monthly payment: here are the terms, no help for me and the fact my loan will go back to the original horrible terms: NO reduction in house value to current market value. NO adjustment on interest rate.

   From EMC
   As we discussed over the telephone on Tuesday evening, the modification documents are unable to be revised. The documents were prepared and approved by our legal counsel and we are unable to make changes to the original documents sent for signature. However, as we agreed, I have detailed the terms below:

   • Loan is calculated at 3.5% interest only starting with January 1, 2009 effective with the February 1, 2009 payment.
   • Payment is due in the amount of $842.98 interest only for the first 94 months (until the November 2016 payment). Escrow added to that is currently $273.29 for total payment of $1,116.27 until the next analysis.
   • Effective with the November 1, 2013 payment, the interest will adjust based on the original note effective every 6 months
   • Effective with the November 1, 2016 payment, the fully amortizing principal and interest will be charged.
   • The maturity date of the loan is effective October 1, 2036.

   Hopefully, this explains the terms of the modification easier.

   Unfortunately, EMC is unable to waive the payments as requested by Ms. Schulz and the modification is effective with the February 1, 2009 payment. I will however, waive the late fees outstanding on the first lien in the amount of $259.65 for Ms. Schulz.

   If you have any further questions regarding this account, please do not hesitate to contact me.

   Sincerely-

   Deana DeLaura
   Vice President
   EMC Mortgage Corporation
   (214) 626-2671

   Please note change in email address effective immediately to DeLaura.Deana@jpmorgan.com
   ________________________________________
   From: Arthur Stockton [mailto:art@lawafs.com]
   Sent: Tuesday, February 03, 2009 6:57 PM
   To: DeLaura, Deana (Exchange)
   Cc: ‘melissa schulz’
   Subject: Schulz – Modification

   Hi Deana:

   I had a chance to review the documents. First, the documents are less than clear about the post-2013 period. They would imply that, perhaps, any interest rate is possible past 2013 – instead of what I think you intend, which is that the loan revert back to the May 2008 terms. I could take a shot at a revision – your choice. Definitely needs clarification.

   Melissa is also requesting that the last three payments be waived, as additional compensation for her heartfelt grief. Please run this by the investor. Also, she would need to start her payments on March 1st, due to the delay in the documents. Hopefully that will not be a huge problem. I have let her know that she needs to bring the second current as soon as possible. She wants to make sure that the first is solidly in place before she brings the second current. The property value has dropped to $210,000 and it is continuing to decline, so she does not want to put any more money in if she needs to walk on the property. I didn’t see any fees for the modification – but she wants to make sure that there are no additional fees or charges.

   Please let me know and thanks for all your help.

   Arthur F. Stockton, Esq.
   o real help at all.

   The recent modification I was offered I look forward to more of your emails and calls, and I still write the press daily. Keep hope and pray.
   Melissa Schulz 949-690-3379

5. jeana reed on February 8th, 2009 7:13 pm (Edit)

   I am in foreclosure and I had talked withhope but they are never answering there phones or call back. It seems to me we are all in the same boat, Just give us a 5% interest rate and be done with it. Simple enogh. They make it harder than it is so they can charge eccessive fees on top of fees and get more money. We have to show where every dime goes but it sure is funny how they Govt put any restrictions on the banks. I read in a article the other day the banks are in it for them and what they can get. It is not about you. It is in it for the money for the banks and investors. GREED.

6. Diane M on February 12th, 2009 9:03 pm (Edit)

   We have been trying to work with Wells Fargo since Oct 2008. Getting no where fast has been the story here. While they have told us we qualified for a loan modificaiton we haveyet to receive any paperwork. Our payments were suppose to go down, but when I called them, they had increased. They refuse to lower the interest rate stating that the loan is with Fannie Mae and they havesaid NO to lowering interest rates, however, one loan modification interviewer told us they had seen rates as low as 3 1/2%. Next thing we know – that’s not the case. Nice that Fannie Mae gets a bail out – but forget about those who need help. My husband is currently off work because of a back injury, his disability pay is not adequate to meet the needs of our household, this is how we got into trouble. Now we need ligitemate help and are unable to get the help we need because the bank isn’t willing to lower the interest rate to decrease our house payment. Wha’ts a person to do, they can pay these big bank executives huge bonuses with government bailout money, but help the little people, nope – not going to happen.

7. Joseph on February 15th, 2009 11:35 am (Edit)

   I hava a pick a payment plan option with Wachovia. I received a call from them last year to have my loan refinance into a more traditional loan and lower interest rates. But nothing materialized for one reason or another. Nevertheless, they are not really serious in helping out struggling homeowners. Wachoviais no more different from other lenders when all they care about is their own self interest. Be as it may. The ultimate outcome is great number of homes being foreclosed all over the country. This trend will continue on and things will get worst. The banks are pretty much in a secured position since they always get bailed out not matter what. But there is still hope out there for struggling homeowners, andthis would come in a form of “Cram down” bill which would give power to bankruptcy judges to strip down the loan principal based on the market value of the property. Moreover, they can alter the interest rates and terms to make the mortgage payments more affordable. If this bill passed legislation, struggling homeowners will certainly have a leverage. Of course, banks vehemently oppose this bill because it would have a tremedous impact on their bottom line, and would force them to come up with a new and better loan modification policy.

8. kevin on February 17th, 2009 6:23 pm (Edit)

   Quit whining.

   I cannot believe you are all upset that Wells Fargo will not reduce your loan balance to the new current value of the property. Would you be writing them complaining if the house had doubled in value? How many of you took seconds or thirds and bought Hummers and Escalades? You dont deserve your houses. No one owes anything to you! Go get a job, work hard, and pay the money you promised the bank you would pay!

   What has happened to my Country?!

   Sounds like all of you would be great renters! When you get foreclosed on and have to rent from a responsible homeowner, let me know how far you get trying to modify your rent when you cant pay that!

   GROW UP!

9. greg on February 18th, 2009 8:44 pm (Edit)

   wachovia is not helping in anything Im losinmy house Imjust behind two months and start getting harder into the payments but wachovia deny all my aplications for a modification loan whats going on with OBAMA help your brothers we put you into the office we re the ones paying all the money you re giving to the companies and the banks and mexico, and they are not helping the people from america ,OBAMA we need at least 400,000.00 dlls for each homeowner in this country to pay our houses anyways we are the ones who pay everything in this country ,yeah but we the poor people are paying for all the corruption who is gonna stop all the crying our investment for years for our sons of my sons our daughters ,people are gonna start living in the streets,living in the darkness god bless us all ,

10. Angela on February 20th, 2009 2:53 pm (Edit)

    I used to work for Wachovia and a major subprime servicer. Don’t forget Wachovia purchased Golden West late in 07 and went subprime after many said it was a dying market anda bad idea. They are just trying to recover massive lossess. The pick a pay portfolio is a “joke” in the lending industry. I left the servicing company ( which used to be owned by wachovia) prior to golden west back in December 08. The last management meeting I attended on 11/08 , leaders were being yelled at for thier agents not collecting enough payments and spending too much time talking to 3rd party counselors. Customers need to remember that the banks are not here to help, they are here to make a profit. They say one thing, nod thier heads, and then foreclose on your home. Unless the govt forces them to correct and address thier misdeeds we can never return to a free market banking system. I have serviced the paper for Bear Sterns, UBS, Merrill, Citi, Bank Of America, Wachovia, Ameriquest,Lehmen haha…and I can confirm it was some of the most fraudulent, morally irresponsible, crap I haveever seen. May I remind you of Alan Greenspans comments about how surprised he was that the banking industry did not regualte itself. ( Duh!) I have spent 15 years in debt collections and have never been so embarrassed to be associated with a group of people in my life. Even when they do modifications it is with thier interests in mind not the feesability of whether or not it will work for that particular household. As a mother and a former manager who punched the budgets of thousands of customers, its not about you or your illnesses, hardships,or persoanl lives its about $$$$$$$$$ and fat banker bonuses. ( please note, of which I have not been a recipient, and glad not to have blood money in my bank account.)

11. Ed on February 21st, 2009 4:47 pm (Edit)

    REsonse to Kevin.

    You forget the facts that the mortgage companies are what started this mess. They promoted loans that people could barely or not afford. Yes there are those that dont deserve it, andthere are those that do deserve it.

    Im sure if you had cancer and needed help you would think diffently.

    Lets just pray you never get sick.

12. Lisa on February 23rd, 2009 8:48 pm (Edit)
    Well, let me mentioned first off, that the “LoanSafe” member above, is ME. I tell you, it was my story all over, except for the Cancer situation, which I truly feel you are very blessed and after looking back at all this (which must have caused great great stress), your health is way more important.

    Moving on, I tried to do all of the same, as my husband had lost his job. He is in sales and it has been a grueling year!

    I started this process in Sept 08′ anditis now Feb 09. I applied for a skip a pay, for a month or so, andwasgiven a 2 month skip, with it deferred to the back of my loan. THenI had a great person in the loan mitigation department, tell me that she could giveme a 2% rate for the first year, 4% rate for the second year and by then we should be comfortable to refinance. Well, I was so thrilled but then received a phone call that I was in a temporary loan modification rate already andthey could not do another loan mod on top of a loan mod. So instead, they gavemea 3rd month to skip my payment, thereby my loan balance increasing. Yes, it helped temporarily but we are still in a terrible situation. So they told me I could refinance andmaybe get a 2% loan rate, w/ a second mortgage at that same rate. My fingers cannot bear to type how many times I called them and w/ my persistency they called me back to tell me they lost my paperwork, as well!

    Then when I finally received my paperwork in the mail, the rate was no better than what I havenow. I did send it back as they told me this does not mean it will be your rate. this took until the end of December 08. And for them to tell me our refinance was denied, as my debt to ratio income is too high. Well, of course it is, we have been llving on maxed out credit cards to keep our home!

    So, I am seriously in trouble now. They said there is one more final step for all the people that have been denied (as apparently, I’m not alone as I can see). They are opening up a new loan mod dept and will be giving these people options, whom have been denied for a refi. I should qualify for this.

    I spoke to a great person by the name of Jennifer and she kept my number on her bulletin board (I do believe that). She told me that in February they will be starting them. Well, you can bet what happens next. Yes, I called them, and did get through to her and she told me they do not have enough people to work on these loans yet. The dept will not be up and running until March now! So it is the last week in February and I decided to make a phone call again today. Of course it rang off the hook. Maybe everyone left the company by now. Who Knows? All I know is I am desperate and need to do something.

    The topper is that there are companies out there that can help us. It just costs money upfront (which I don’t have right now). There are people that will investigate your original loan application for all the fraudulency. I did have Wachovia send me my original loan application. And do you know how much money me andmy husbandmade. $14,000 in one month. Yep, if we made this kind of money we would not be in this situation at all. That is how your’s and mine loans were approved. By them increasing what we made. Just do it for the heck of it. Call Wachovia andask them for a copy of your loan application. It is on the second page. I was floored when I saw that number and actually laughed.

    Yes, at the time we all needed these loans to work for us but never did I sign such an application! It was all over the phone originally.

    This company that can go in and fix all this tells me it could take up to 6 months and you could end up getting the principal reduced on your home, and some money back…. $20,000 to $60,000 for example, while them giving you a decent interest rate.

    The good news is they can do this even if you are in a new loan modification. I WANT OUT OF WACHOVIA which soon we all will be w/ Wells Fargo, which was my mortgage company many years ago. I did try and call Wells for a new loan and they cannot do anything for me.

    O well… I am being persistent still and sometimes persistency DOES pay off!

13. caliking on February 25th, 2009 2:30 pm (Edit)

    The deal Wachovia is suppose to do for me is a 1st for current mkt. value and a silent 2nd for 3 yrs on whatever else is owed on my current loan balance. Wachovia is SUPPOSEDLY trying to work out for me. The reason I say supposed is because they started the loan application in Oct 2008! I think they are full of CRAP. What refi takes this long???They are very vague on the phone & email, STILL haven’t locked in a rate. The only concrete things they’ve said is that my loan is NOT underwater. The appraissal they did came in at 500,000. my existing loan balance is 469k. I have a pick-a-pay but only paid the minimum pymt once. So I don’t currently havenegative ammorization. My credit is just fine 699 & my DTI ratios are good, been on my job 15 yrs and have sufficient income to service loan. Never been late or skipped any payments. I really think Wachovia isn’t trying to help ppl because, my refi should’ve been a slam-dunk & completed alongtime ago. Supposedly, my file is with the underwriter for FINAL approval and I should be getting a call anyday now to discuss a rate-lock!!!! Yea whatever….

14. Jen on February 25th, 2009 8:29 pm (Edit)

    OMG caliking! We started our loan with Wachovia back in October of 2008. We too have the pick-a-payment and are current on the loan. We want out of this loan too. Wachovia called us and asked if we wanted to redo our loan.

    After months of calling them sending any information they needed we just an email from them stating we do not qualify for the loan. they told us:

    Our appraised value came in at $305,000.00. The amount that is estimated owed on your first mortgage is $314,597 andon the secondis $59,029. The total of the two loans are $373,626. As you see, the amount owed is much higher that the appraised value. The underwriter was working very diligently on your file to try to make your refinance work. Unfortunately, you combined loan to value is above 100%, the actual amount is 125%, which means that the total loan amount compared to your appraised value is 125%. Wachoviais not able to approve the loan with a combined loan to value that high.

    Wachovia is a joke! I guess we are done for it when our loan gets too high for us to pay. What do we do? No one at Wachovia will help. why in the heck did they have info with the underwriter for so long and then they finalygive us this BS.

    Good luck caliking. our loan lady kept on saying she would know about our loan when I emailed her and she decided to get back to me ” We will know tomorrow” Don’t count on it!

    I think these Pick-A-Payments need to be all modified so in the future they won’t come back to bit us in the ass.

    Good luck you all!

15. Ed on February 25th, 2009 11:12 pm (Edit)

    DO NOT GIVE UP. I am the Wachovia nightmare that started this thread. On the last day of my deadline with the bank, I had all but given up. With the help of Kelly Hansen,andOliver Becker of Lawyers Loan Modifiers, I was able to forward my letter to the President of the Wells Fargo mortgage division. She in turn forwarded my letter to Rose Dunham at Wachovia. Within 3 days I was offered a resolution with a great apology.
    Reduction in principal balance. 40 year rate at 4.5 locked in for five years, witha cap of 6.5 for the life of the loan. Reduced my payment 700.00 per month.

    Wachovia is now responding to the issue. Wells Fargo is taking over 178,000 Wachovia pick a pay loans.

    DO NOT GIVE UP. KEEP CALLING. KEEP ASKING.

    GOOD LUCK ALL.

16. DR on February 26th, 2009 2:12 pm (Edit)

    Kevin, thank youf ro saying what most people are unwilling to say.

    I hear a lot of complaining about lenders and brokers and deceptive practices. I have to agree that the lenders shoudl not have come out with many of these products such as the pick a pay but when you were offered a lona with 4 payment options wiht a minimum payment of 1 or 2%, many of you were salivating at the mere fact that you could make such a small payment on your bigger and badder home.

    Brokers cannot be faulted entirely for this. Brokers are exactly that, brokers. they dont make the products they dont even come up with the idea for the products. They merely sell the products that are available to them. Many lenders made higher incentives on certain products if they sold them. SO BLAME THE LENDERS!!!

    Also blame yourselves for being greedy and pulling out your equity, living fat while values skyrocketed. Buying all kinds of stuff, hummers, jet skiis, motoycles, vacations.

    Now that th eproverbial crap has hit the fan, everyone wants their mistakes erased and washed away liek they never happened. How about owning up to your situation and taking responsiblity?

    Some of you have unforesceen circumstances, liekillness, lay offs, etc. But what about everyone else? what’s your excuse?

17. Krishna on February 27th, 2009 8:43 pm (Edit)

    This is the 4th time I’ve applied for a loan mod andI started the process a year ago when my rate started climbing. First time I was denied because I was not in default, second time was because I wasn’t living in my home(had to rent it out and move in withmy parents to save it), third round, it was ok that i wasnt living there but i made too much, and last but not least, now that my tenants are gone, I dont qualify because I just don’t have enough surplus. These people are unbelievable.

18. Rebecca D. on February 28th, 2009 12:51 pm (Edit)

    While I agree with DR in part, let’s not forget that a broker is a sales person, and they do what they do best….sell!. When faced with scewed facts and limited information steering a homeowner in one direction (1-2% interest rate) and the broker having every incentive to sell that program (5% rebate payments), you have to ask yourself, did the homeowner really have a chance to make a good decision? The brokers are at fault just as much as the lenders. If as a broker your job is to assess your clients (homeowner) situation and make the best recommendation for their home loan, then there are plenty of brokers who did NOT do their job, plain and simple.

19. RON BRUCE on February 28th, 2009 3:55 pm (Edit)

    CIT IS REAL HARD TO DEAL WITH ALSO, THEY WON’T EVEN RETURN MY PHONE CALLS, EXCEPT FOR THE COLLECTERS. I HAVE BEEN FIGHTING WITH FOR 3 MONTHS, I AM JUST A NO.

20. Chona Mejia on March 4th, 2009 5:17 pm (Edit)

    we filed lawsuit against wachovia since November 5, 2008. They have defaulted, our case is still in litigation. They are the worst lender on earth.

21. Chona Mejia on March 4th, 2009 5:20 pm (Edit)

    our case: cv08-02993. We are disqualifying the district judge, he practiced at the firm for Wachovia’s counsel. If he will not disqualify himself, we will appeal to the supreme court.

22. LVargas on March 6th, 2009 10:46 am (Edit)

    I’ve read most stories & mines sounds almost identical. I have written,& written hardship letters since beg of last yr08, lost reduction in income, layoffs for my husbnd, trng to find a job, my reduction in income, we cld not afford the mtg any longer so strted using crdit cards to live off, no crdit high, was offerd thru wachovia refi green program, their appraiser came to my house b4 xmas, had processor’s email said still in underwring, in meantime loan mod dept was offered to modify by pushing some mtg pmts to end of loan but processor sd if sign lttr to modify i would not qualify to refi. I kept requesting how will the refi work or what options I had no one would offer to explain so I can decide which one is better or if any, did not sign letter then I rcvd one cll a miracle from someone else denying my refi but not for credit reasons nor for value, only explanation was the green refi prgrm fell thru no longer being done. never recvd a denial lettr, have been tryng to find out the value of my house since wachovia’s appraisal
    was done. now its march, again trying to refi, offered to push pmts to back of loan and my regular pmt to start in 3 weeks, but I havebeen making pmts almost every two weeks jjust behind 1mnth to 1 1/2 mnth. I keep asking if other progrms to turn to a low fixed rate or longer term period or reduce prinicpal. I dontwnt to giveup my home, we gave $100,000 for dwn pmt! my husbnd is wrkng extreme hrs just to know value is not there and can hardly pay regular electric water mntce of house food, should we let go & live a calmer life and rent and have our credit ruined by foreclosure and not have a future nest egg for kids’ college? HELP we are very simple people, no hitech electronic stuff, no hi end cars, we actually need a car, no vacations just hard wrkng trying to keep home for kids and have smthng in future for them.

23. SHAR on March 7th, 2009 2:43 am (Edit)

    I HAVE A PICK A PAY PLAN WITH WACHOVIA. MAY 22, 2009 A TORNADO STRUCK MY HOME AND WE ARE IN LITIGATION TRYING TO JUST GET THE INSURANCE TO STEP UP AND MAKE THE HOME WHOLE AGAIN. MEANWHILE I AM GETTING NO WHERE WITH WACHOVIA TO GET A LOAN MODIFICATION EITHER. YOU SEEM TO JUST GET PASSED TO ONE PERSON AFTER ANOTHER. MY HOME WILL BE FORCLOSED ON IN APRIL IF I CANNOT GET ALL THIS SOLVED. I AM HAVING HEALTH ISSUES, THERE IS SO MUCH WORRY AND ALSO A DIVORCE BECAUSE THE STRESS CANNOT HOLD US TOGETHER. YOU WOULD THINK IN A NATURAL DISASTER THAT WOULD GET SOMEONE ATTENTION. MY HOME SITS A FOOT OFF THE FOUNDATION AND IS RACKED TO THE EAST…I COULD NOT EVEN SELL IT.

24. martha velez on March 9th, 2009 12:01 pm (Edit)

    we did lost ours income like 50% ,my husband get laidoffs and we can’t afford make that payments any more.I did called wachovia inmediality andlet them know the situic.They did sendme a letter asking for some infort, i send that paqt back,overnigth,everything was back on nov..i stil haven’t recive an ansering yet.Recive a letter end of january for Scoott Turner were said we want to help you,call us back,inmediality,i did..anybody know anything,all those have differents anwer,they said will keep reviewing your pack,whatever..!! i told them are you fulling around withme??? am a serious person, this is a disrespetfull, call us in a week or we will callyou back…other person said to me..star sending the regular payment!!! paid us the floucloser lowywre fees+two monthfor you full payment…!!!and i said wait a minute…if i would have the money ..i would even called you!! Can somebody do something about?? my mortage is 100% fannie mae,i do work..so i do havesome income..my husband finally has a partime job.Beside they have beeng told me that fannie mae doesn’t have any program yet in force!!! went they are who being getting all goverment money..I have being working all my life since i came to this country ,never got any tipe of benefits,i did paid a lot of taxes,because i used to make good money!!did wachoviawas very happy getting everymonth my payments andextra payment that i used to send to the principal??? ,andknow noby wants to be able to even talk to me???what is wrong???i wount give up..somebody will help me!!!

25. ElderAbuseByWachovia on March 11th, 2009 4:38 am (Edit)

    Let me tell you about our experience with those low-life dogs. My parents weren’t johnny-come-lately homeownwers. They bought a modest 2-bedroom home somewhere around 1971, put 20% down andmadesure the mortgage was paid every month. World Savings was the original lender. They had a lot of kids, so they did a refi here and there, nothing crazy. No fancy cars, no vacations, no SUV (they didn’t make them then), no 2nd or 3rd home they couldn’t afford, no risky investments or anything else so many people are quick to accuse others of doing a refi for. My parents were loyal customers of World Savings, staying with them when they could have gotten much better terms elsewhere. World said my father was a very good customer and he had excellent credit with them. As a matter of fact, sometimes when a payment was late World never put it on their credit report. My Dad worked in the shipyard around a lot of asbestos and fiberglass, and over time he developed several types of cancer. Before he died in 2005 he did one last refinance. He knew the household income would drop drastically when he died (he worked 25-30 years for the federal government so he had a pension and no social security and she had been a full-time housewife)he wanted to make sure the bills were paid off and his wife had a little something to put up for a “rainy day”. Less than six months after Dad died Mama started receiving 10-20 phone calls a day and her mailbox was overflowing with mail from brokers and lenders promising her the sky if she would just refinance with them. Lower loan payments, lower interest rates, you name it they were offering it. You see, like so many others, Mama fit the profile for the perfect target for these unscrupulous buzzards. She was a elderly, minority widow who was low-income but had a LOT of equity in her home, not a high school graduate and unsophisticated in the area of real estate finance. And after dealing with them for so long she thought no one from World Savings would cheat her. Eventually a smooth-talking young man called and caught Mama at home alone. This guy was in another city and she believed him when he said he worked for World Savings (We found out later that he actually worked for a broker who had a “special” relationship with World Savings). To make a long story short she believed this guy’s big promises (lies) and the whole refi transaction took place on the phone and through DHL. We didn’t know anything about it until the check came in the mail. We were outraged and when we contacted World to try to undo the mess they said Mama had signed the papers and there wasn’t anything they were willing to do (it was a pay option ARM with a much higher interest rate and monthly payment than she had paid before and her income had been seriously inflated to qualify her for the loan). This was in Jan. 2006. In July 2006 Mama started getting all these phone calls and mail again. I know for a fact that a lot of those phone calls came from World Savings reps and loan officers because I answered the phone on several occasions and told them to stop calling because Mama wasn’t interested in doing another refinance at that time. Most of them were very pushy and persuasive and some were downright obnoxious. A lot of the mail came directly from World Savings or it was worded in such a way that there appeared to be a connection between the sender and World Savings. Anyway, I had a talk with Mama, who at the time was 84 years old and in poor health. I told her that she couldn’t believe everything she was told or that she read and that no matter how nice they sounded most of these people were out to strip the equity out of her home so she would end up in the streets due to foreclosure. I told her not to talk to any of them unless someone was at home with her. So imagine my surprise when I returned from a business trip and found TWO STRANGE MEN in the house with her! She was sitting at the diningroom table dressed in a gown and robe and the two men were standing over her while she signed some papers. Now people, what was so alarming about this scene was that Mama was still recuperating from pnuemonia and obviously very sick (coughing, sneezing, feverish, etc.) and she had vision andhearing problems. When I started questioning them they gave me their cards. I asked one of how would he feel if someone did what he was doing to my mother. He laughed and said he had to make a living and he had a sickly wife and some kids to support, “AND IF I DON’T DO IT THEN SOMEBODY ELSE WILL”. When he said that it made my blood boil and shortly after that the men left with the signed papers, never to return. Mama told me it all started when the caretaker had missed a day. She got a phone call from a man who said he worked for World Savings. She told the man couldn’t he hear she was sick and couldn’t he call back another time. But when she told the man she was home alone he got even more pushy and insisting that she had to let him come talk to her about refinancing her home right away. Mama said the only reason she agreed to let him come over the next day was so he would go away. But when the man showed up the next day he wasn’t alone (Mama said this guy hadn’t asked her permission to bring anyone else with him). He introduced himself as the guy who had called from World Savings and said the other two guys worked with him. Mama told them she was sick, but the man said that he had to go but it wouldn’t take the other two very long to help her and he left. Mama looked and sounded so bad that one guy told the other guy to go to the store and get some orange juice, chicken soup, and cough medicine “to make her feel better”. The other guy came back and he heated up the soup andthey gave it to her along with the juice and cough medicine. So if they explained anything to her about the loan she was already sick and now she was drugged up and drowsy from the cough syrup. She said she didn’t remember what they said, she just signed the papers so they would go away and leave her alone. A week or two later a notary public showed up witha stack of loan papers for Mama to sign. She couldn’t read them, she didn’t understand what they said, and nobody explained anything to her. But she said she was signing the papers anyway because she believed one of the guys who told her she reminded him of his mother and this loan was good for her because it would lower her interest rate and loan payment plus he would help her refinance into a better, fixed rate loan in six months or less. Evidentially this guy had talked so persuasively that he had gained her trust and so she signed the loan documents everywhere the notary told her to sign. But I was sure that no way would the loan be approved by World based on her low income. But much to my amazement and chagrin, the World Savings underwriting department actually approved the loan and shortly thereafter Mama received a check in the mail. She used most of the money to get some repairs done on the house, buy some much needed new furniture, and a few other things. Based on her ACTUAL, VERIFIABLE INCOME, the ONLY one of the four payment choices on the pay option ARM loan that she could pay was the minimum, interest only amount. This was also the “lower” mortgage payment that was shown on her loan documents and that the mortgage broker’s reps andthe World Savings guy had told her about. Of course it was a negative amoritization deal so that started piling up, getting her deeper and deeper into debt. Then the payments started going up. By the time November 2007 had arrived the mortgage had increased four times. And it was in November 2007 that so many things started happening that Mama just got overwhelmed. By this time Wachovia had taken over and let me tell you these people didn’t know the meaning of customer service and they refused to admit they had made mistakes. Mama had missed the September and November payments and we were trying to find out exactly what we owed so we could pay it. According to their own statements, the mortgage payments was the same for September and October and was scheduled to increase by almost $200.00 on November 1st. But the rep I was dealing with told me Mama had to start paying the new mortgage effective OCTOBER 1st even though that wasn’t what was on their own statement. This woman was very rude and nasty and insisted that Mama HAD to pay the amount that she said. Then she named another, lower amount and that’s what we sent Wachovia. They REFUSED to accept it and returned the payment. Even though we knew Mama was being overcharged we sent the incorrect amount trying to get Mama’s payments current. Then the washing machine broke. The washing machine was directly over the furnace and the water flooded the washroom and flowed down onto the furnace, putting it out, so we had no heat. Then a few days later Mama went downstairs to see why her son didn’t come up for breakfast and found him dead in his bed, still warm. He had been ill but his death was unexpected. And then the insurance company pulled a number. We had already talked with them and thought everything was okay, but on the day of the funeral, less than an hour before the service was to start the insurance company called the funeral director and told him they weren’t honoring the policy. The funeral director called Mama and said unless somebody came up with some cash there wasn’t going to be a funeral. Now keep in mind people were sitting in the funeral home reading the obituaries, the flowers were in place, the music was playing, and the limousine was parked outside waiting to take Mama and the family to the funeral home. God truly answers prayer because one of the out-of-town relatives we called left his job anddrove like a madman, arriving 10 minutes before the funeral was to start to pay for the service. After the service we contacted the insurance company and they claimed that according to their records the policy had lapsed months ago when a payment had been missed. The new stress made Mama sick. I called Wachovia’s Loss Mitigation department to explain the situation and ask for a little time to straighten things out. You would not believehow awful those people talked to me. Basically what they said was “we don’t givea damn what happened, just send us our money”. At that time we owed for November plus a bunch of late and other fees they claimed Mama owed. They said they would only accept the total amount due, which was more than we had. The crazy insurance company was still refusing to honor Mama’s claim so I filed a complaint against them with the Dept. of Insurance. If we had had that money we could have paid Wachovia. In January 2008 we got a letter from Wachovia stating that Mama owed them almost $6,000. In February Mama got a Notice of Default stating that now she owed almost $11,000. The NOD had not been properly served, so I went to a community organization for assistance. They referred us to another organization who in turn referred us to some attorneys. While the attorneys were going back and forth with Wachovia Mama got served with a Notice of Trustee’s Sale that set the sale date for 2:00 pm on July 14, 2008. Not only was this notice not properly filled out or served, but when I checked it hadn’t even been recorded.

    (I know this is really LONG, and if anyone has gotten to this point God bless you for your time and interest. I have to go attend to Mama and if anyone is interested I will continue her current ordeal with Wachovia, giving more detail about how the sale was put off numerous times and all the other crazy stuff that has happened. Again, thank you for letting me tell Mama’s story andwe’re praying that you all get the relief you deserve.)

26. ElderAbuseByWachovia on March 11th, 2009 4:47 am (Edit)

    I just spent quite some time writing about my Mama’s awful experiences with Wachovia, but when I clicked on the “Submit Comment” tab and waited, the only thing that I saw was the “Name”. So what happened to all that pain I spilled out for you and your readers Moe?

27. Moe Bedard on March 11th, 2009 1:48 pm (Edit)

    Sorry about the delay on your post. We have an internal blog delay on comments so no spammers can spam us. Please write away.

28. Georgia Sikora on March 11th, 2009 8:12 pm (Edit)

    I have had the same nightmare as the person who had the throat cancer, it sounds like my story. I have tried over and over to get help all they do is deny me or I am told to call back. Wachovia is the worst the representatives lie lie lie, how can I make my payment if I don’t have the money, they call me everyday and everyday I tell them the same thing.

29. Von on March 12th, 2009 7:23 pm (Edit)

    THERE IS HOPE! I’ve tried to get a loan mod for over a year and have been rejected for poor credit (duh!) and other times just turned down flat out! In Jan 2008, Wachoviadeferred 2 payments which was only a band-aid. I received a letter in Feb 2009 regarding the pay option arm I was in saying I may qualify for a loan mod. I couldn’t believe it because I have been told all along the same things the others posted. I got my approved loan mod papers today and still can’t believe it! What I had: pick a payment @ 7% about $100k in neg amortization and a p & i payment of $4000! God has blessed me witha new fixed rate loan, 20% principal reduction, was owing $645k now owe $510k, the first 7 years interest only payments: 1st 3 yrs – 2.75% and up 1% years 3 & 4, etc. Year 8, fixed principal and interest payments at 6.5%. 40 year term. The loan mod is effectiveas soon as they receive it in the mail andthe 1st payment is due next month. I am self employed, in business 1 year and have not filed taxes yet. I had to show 3 months of receipts (but provided 4 months) as proof of income, profit and loss statements for the year (prepared by me), business license anda cable bill to prove that I livein the house. They did run a credit report but I told them that I was not paying any of that my only concern is the mortgage. I was 3 months behind but made 3 consecutive payments in Dec, Jan and Feb 09. I also included a letter explaining my situation, although they did not request a hardship letter. Your income and ability to pay now is weighed the most, it is NOT based on your credit. I hope this info helps andplease don’t give up. TO GOD BE THE GLORY!

30. Luvly on March 13th, 2009 3:29 pm (Edit)

    I just got the denial for a loan modification program from Wachovia after 6 months of dealing withthem. I was denied to a high dent to income ration. Well.. isn’t this the reason why I am asking for a loan modification? Anyway, I am now curious if I was eligible in the first place: My current home loan is $552k, my house is appraised at $380k. My husband and I are both employed and we’re healthy people. Wachovia called us last year to inform us that we may be eligible in their new loan program where the appraised value of the home will be our new loan amount with a good fixed rate interest. The remainder will be at 0% interest rate payable in 30 years. We didnt have to pay antyhing on the remainder of the loan for 3 months. This seemed like a good opportunity for us to catch up on our bills. We are drowning in credit card debt. THis is why we are asking for help. OUr credit card interest rates have gone up which significantly raised our minumum payment. Are we really qualified for any loan modification if we are not late on our mortgage payemnts, we have not lost our jobs, or we are not sick?
    Please help

31. Wendy Anderson on March 14th, 2009 12:01 pm (Edit)

    I just dontunderstandwhy everyone believes they “deserve” a loan modification these days. So many people out of work. How can you reasonably expect a bank to modify your home loan if you HAVE NO INCOME TO MAKE THE PAYMENTS? It really blows my mind. Listen, when you buy a home, you MUST have reserves. People loose jobs, it happens, thats why 8 mos reserves are a good idea if you own a home. If you loose your job,get sick, get hurt, etc. thats how you stay afloat until you are working again. You have no business even applying for a mortgage if you have no savings. You can blame these banks all day long and take zero responsibility if that makes you feel better.

32. Withheld-I don’t trust anyone on March 18th, 2009 3:08 pm (Edit)

    What is the ultimate goal of Wachovia/Wells Fargo? I have been lied to; cheated by; fraudulently “loaned” to by World and Wachovia. I am not a discrutled loser; I am an hones, Cancer destroyed human who has been cast off by the world I live in (excuse the pun). Is it not time for us to revolt? Who is getting all the money that we have paid for? Why are we letting this happen. World/Wachovia/Wells fargo is laughing at us, along with AIG;l whilte they are taking our money to the bank. ARen’t we worth more than this. I am dying.

33. chant9 on March 20th, 2009 10:36 am (Edit)

    can someone give me the best fax number for Wachovia…to submit a hardship letter for modification request under the affordability Plan…?

34. unknown on March 20th, 2009 11:45 am (Edit)

    Same boat as the rest. i have been trying to work with Wachovia for over 8 months with same old thing, its under review or rejected. now that Wells Fargo is the note holder, bad news. i have a job and make good money. i plan was to refi into a better rate but cant cause my house is worth 280 and the note is 412. i also dont have the 4000 to pay for a loan mod. what a joke this is! i think once Wells Fargo see’s how many bad loans they now have from World and Wachovia they might jut help out. i hope.

35. Cecily on March 24th, 2009 12:01 pm (Edit)

    Hey Wendy Anderson take a hike! I have a 810 Fico score, didn’t take out more on a mortgage than I could afford on my income, had a great savings account, had a 401K (before banks put our economy in the toilet) and I used the balance to pay off all other debt, the whole nine yards sweetheart. You know what happens to that savings, when you’re out of work for several months and you’re supporting a family of 4? Not to mention someone who is also dealing with severe illness in the family. Not all of us live beyond our means Wendy, but we have all exhausted all other options and we have all had issues with Wachovia. It is obvious you have your head so far up your arse you can’t see past the end of your nose. Wachovia won’t even refi to drop PMI, no refi’s got it. Doesn’t matter what your LTV is, they simply are impossible to deal with. Get your facts straight or get off the site.

Tagged as: Loan Modification, mortgage modification, mortgage servicing, Wachovia Loan Modification, wells fargo loan modification