Mortgage Modification - Wells Fargo Announces Plan For Mortgage Forgiveness

Wells Fargo and Co. recently announced that starting on December 20, 2010 until June 30, 2013, vulnerable Pick-a-Payment customers in California can qualify for forgiveness on their principal amounts by maintaining their mortgage payments on time. Also, Wells Fargo will add $33 million to the state coffers that will be earmarked to canvass knowledgeable helpers to aid at-risk customers and to minimize the effects of mass foreclosures in the state’s municipalities.

These initiatives include mortgage modifications intended to keep homeownership feasible with methods such as interest rate reductions, loan term extensions, and as listed above principal forgiveness. The firm in the past has sponsored three extensive Home Preservation Workshops in California and spearheaded 15 Home Preservation Centers all over California providing customers face-to-face meetings with a professional home preservation specialist.

“The majority of Wachovia’s Pick-a-Payment customers reside in California,” said Mike Heid, co-president of Wells Fargo Home Mortgage. “We’re pleased that going forward the attorney general’s office will assist with outreach, so that we can continue to work with as many customers as possible on the options available to them to prevent foreclosures.”

Wells Fargo plans to locate and contact customers likely to be qualified through letter campaigns, as well as set up a helpline to offer advice to stressed borrowers. Many Spanish-speaking specialists are to be hired to service the large Spanish-speaking community in California.

Home owners who have prior mortgage modification arrangements will not be eligible to participate in the program.

Customers of Wells Fargo who opted for pay option mortgages through Golden West or Wachovia and would like information regarding this modification plan can call 888-565-1422.