Charlotte's North Carolina based Wachovia Corp, which acquired Golden West and which is now being acquired by Wells Fargo, has launched a major effort to refinance its troubled mortgages. It will primarily focus on pay-option ARMs, called Pick-A-Pay, and the assistance program will refinance these mortgages into FHA and other conventional mortgages. This should help stop foreclosures on those risky mortgages. The bank has also been waiving origination fees and prepayment penalties for those customers, and Wachovia has redeployed almost 1000 employees to help with this effort, and is committed to contacting every eligible customer.
These mortgage refinances being offered to customers, which are being focused for now on customers who are current in their loans, could help almost 300,000 of the 438,000 Pick-A-Pay borrowers. Also read about forbearance programs from Wells Fargo that can help all homeowners, regardless of whether you are current on your loan or not. Click here.
Wachovia has waived all prepayment fees that are the result of or associated with the Pick-A-Pay mortgages that were previously originated. This will provide customers complete flexibility in their home financing decisions, so they can refinance the loan, pay it off early, or proceed with other options.
Wachovia is doing whatever they can to proactively assist customers and provide mortgage relief through a number of assistance programs. They want to keep people in their homes and to help them avoid foreclosure. Wachovia, now part of wells Fargo, has worked with tens of thousands of families to help them stay in their homes and to also provide them with monthly payments that are more manageable and affordable under their current financial circumstances.
Wells Fargo also has announced additional mortgage and foreclosure assistance programs. Read more.
The bottom line is that Wachovia, Wells Fargo, and Golden West are doing what they can to help homeowners and keep them in their homes. They want to prevent as many foreclosures as possible.
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