subject: Wachovia Loan Modification Can Save Your Home From Foreclosure [print this page] There is good news for Wachovia loan borrowers, particularly to those who are struggling to meet their monthly mortgage payments - the Wachovia loan modification program.
Recently, Wells Fargo bought Wachovia and implemented this loan modification scheme to help troubled mortgage holders. If you are one of the mortgage holders from Wachovia, you might be interested with this program.
In the Wachovia loan modification plan, borrowers who are in default or in danger of falling behind can get as much help as they need. The bank can do one or a combination of these three:
1. extend your loan terms up to 40 years;
2. decrease your interest rates;
3. decrease the principal forbearance.
The following meanwhile, are three criteria for qualifying for the program:
1. you as a borrower must be the primary and permanent occupant of the home;
2. your property must be a single-unit home. No rental properties are allowed;
3. your total debt cannot exceed 45% of your income.
Wachovia loan modification has two main benefits. First, it allows for adjustable rate mortgages or ARMs to be fixed rate. Next, this eliminates negative amortization loans that can only affect the borrowers in the end because of the extra charges that need to be paid.
This loan modification program has interest rates adjusted to the time elapsed since the original modification of the loan. For example, a new interest rate of 2% will remain the same for the duration of the first year of payments, then will only increase to 4% during the second year. Hence, the increase is slow giving time to the borrowers to cope with the change in rate.
Research more about the qualifications and coverage of this program. Know all the rules and guidelines for applying. Under the new ownership by Wells Fargo, Wachovia is better and stronger, much more capable to lend you the help you need.
