Wells Fargo to Help Arizona Homeowners

wells fargo pick a pay settlementAre you one of the 1718 Arizona homeowners who obtained an adjustable rate mortgage also known as the “Pick-a-Payment” program offered by Wachovia or Golden West Corp (now owned by Wells Fargo)?  If so, there may be some good news for you!

Wells Fargo has agreed to provide more than $150 Million in mortgage relief  via loan modifications to Arizona homeowners as a result of a settlement which alleged the loans were marketed deceptively by not fully explaining to homeowners that making minimum payments during the first years of their loan would result in the unpaid interest being added to the principle balance of the loan.

The “Pick-a-Payment” loan risks were downplayed in the company’s marketing which resulted in homeowners finding out too late that they now had a much higher than expected loan balance.

The 8-state Agreement was lead by Arizona and was joined by Colorado, Florida, Illinois, Nevada, New Jersey, Texas and Washington.

The settlement will provide $772 Million Dollars in relief for those states affecting more than 8000 homeowners.

Attorney General Goddard says the loans contributed to Arizona’s housing crisis where HALF of all mortgages are currently under water (the homeowner owes more than the home’s resale value).  More than 41,000 Arizona homes are currently in foreclosure.

The Agreement from Wells Fargo (who admits no wrongdoing) includes $86 Million to Arizona homeowners who are at least 60 days behind on their mortgage payments (or are facing imminent default) and are still living in the home.

Many of the “Pick-a-Payment” mortgages that face balloon payments will come due next year.  Bad news for the Phoenix market I’m afraid.

If you are a Wells Fargo customer who had your mortgage through Wachovia or Golden West, you can get information about the program by calling 1-888-565-1422.

About Amy Jones Group

Amy Jones is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.