Comments on: The mortgage market turns a corner – Wachovia retires Pick-a-Pay

By: Tony

Tony — Fri, 05 Dec 2008 23:37:34 +0000

I wondered why I keep getting registered, fed ex letters from Wachovia offering to refinance my lpick a pay loan. I'm holding out until rates drop.

By: Tony

Tony — Fri, 05 Dec 2008 22:37:34 +0000

I wondered why I keep getting registered, fed ex letters from Wachovia offering to refinance my lpick a pay loan. I'm holding out until rates drop.

By: H8ting Wachovia

H8ting Wachovia — Tue, 29 Jul 2008 19:52:08 +0000

Too (expletive) late! I was in a World P-A-P product. I saw this coming. I tried to refinance out of it while I still had some value in my home. All I needed was the forgiveness of the prepayment penalty. I had the opportunity to re-fi into a VA loan with a good interest rate, but Wachovia refused to waive the pre-pay. Now I sit on a home that is negative by about $120,000, and nowhere to go. In an attempt to stop the bleeding of the combination of negative amortization and decreasing home value, I entered into a fixed payment modification for 12 months. I paid full PI at 5.9%. When I came out of the modification, the loan was supposed to revert back to the original terms and conditions (read pick-a-pay options). But Wachovia has unscrupulously taken those payment options away from me. Now they expect me to make a minimum payment of full PI based on a locked rate of 7.25%. They locked in that rate which was supposed to be based on July's CODI but used June's rate. This of course means that they can lock in a higher rate as the CODI is continuing to drop quickly. Mortgage X anticipates that with my margin added, my interest rate should be in the low 5% range as of December.

It is as if no matter what I have done to try to be responsible and try to stay in my home, Wachovia has been working against me.

By: The mortgage market turns a corner - Wachovia retires Pick-a-Pay at tvanderwell on SmartHippo.com

Tue, 01 Jul 2008 19:22:42 +0000

[...] Wachovia retires Pick-a-Pay: “While this has been covered extensively elsewhere with various regard I think we?ve reached a very important part in the mortgage market correction. The return of sensible underwriting is finally getting back to basics. The elimination of exotic mortgages like the pick-a-pay is exactly what the housing and mortgage markets need to return to normalcy and sustainable, responsible growth.” [...]

By: mtg

mtg — Tue, 01 Jul 2008 18:48:51 +0000

What abou companies like IndyMac that had their call centers solicit borrowers into higher cash out loans using option arms?

By: Don

Don — Tue, 01 Jul 2008 15:08:13 +0000

Thanks for sharing Morgan. This is good news. WAMU should have cut this off early last year, but their Option Arm may be their undoing. When I sat on their lock desk, I'd say half the loans I locked were option arms.

Maybe I read this on blownmortgage, I can't remember, but Option Arms were initially set up for people who would be holding on to a home for the short term, while they could rehab it and flip it. This program was NOT set up for long term buyers who used the home as their primary residence. What a friggin' mess!

By: Nike

Nike — Tue, 01 Jul 2008 11:32:27 +0000

This article contains really useful information. Now i see the reasons for refinancing quite clear. First of all it may take long to find the best mortgage type for you especially if your credit score is not too high. I think it is better to compare several mortgage types before choosing this or that loan option. Probably with the help of this service http://www.fizber.com/sale-by-owner-home-servic... you may find a low interest lender.