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Wells Fargo and Wachovia provide mortgage and foreclosure help.
Wells Fargo is also providing mortgage assistance. Earlier this year they acquired Charlotte, North Carolina based Wachovia Corp. Prior to this acquisition, Wachovia Corp acquired Golden West in 2008. Well Fargo has launched a major mortgage and foreclosure assistance program to help homeowners refinance troubled mortgages, most of which were issued by Wachovia and Golden West.
The mortgage help being provided will primarily focus on the pay-option ARMs, which were called Pick-A-Pay when issued by Golden West, and the assistance being provided by Wells Fargo will allow these loans to be refinanced into FHA and other conventional mortgages with a lower interest rate. This approach should help stop foreclosures from occurring on the Pick-A-Pay mortgages. In addition, the bank has also been waiving both prepayment and loan origination fees for those customers to provide them with additional support. Last, but not least, wells Fargo and Wachovia have redeployed over 1,000 mortgage counselors to help with this effort and to expedite the refinancing of the loans, and they are committed to contacting every eligible customer who may need help with paying their mortgage.
As an end result of this program, these mortgage refinances, which is being focused for now on customers who are current in their loans and not behind on their payments, could help almost 300,000 of the 438,000 Pick-A-Pay borrowers across the country, and should greatly reduce the number of foreclosures from these loan types.
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