Wells Fargo & Co. says that from Dec. 20, 2010, through June 30, 2013, at-risk Wachovia Pick-a-Payment customers in California may be eligible to earn principal forgiveness by making on-time mortgage payments. The company also will contribute $33 million to the state to enlist help in customer outreach and to prevent or mitigate the impacts of foreclosures in California communities.
The program is the result of an assurance agreement between Wells Fargo and California Attorney General Jerry Brown related to the marketing and origination practices World Savings Bank (a subsidiary of Golden West Financial) and Wachovia used for pay-option mortgages prior to Wachovia's merger with Wells Fargo on Dec. 31, 2008.
"The majority of Wachovia's Pick-a-Payment customers reside in California," says 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."
California joins nine other states that have entered into similar agreements with Wells Fargo: Arizona, Colorado, Kansas, Florida, Illinois, Nevada, New Jersey, Texas and Washington.
SOURCE: Wells Fargo