Need Help w/ Wachovia Loan Modifications? Ask Joseph Bograd

Real Estate Agent with Re/Max Elite

Distressed homeowners looking for relief may get Wachovia loan modification help with some new programs.  Wachovia is trying to eliminate as many of the high risk Pick a Payment adjustable rate loans from their portfolio as quickly as possible. These loans featured a low, minimum payment rate that resulted in negative amortization for many confused borrowers who saw their loan balances increase each month.

Wachovia holds one of the largest portfolios of these creative financing loans and have experienced high default rates as home values have declined and borrowers were unable to refinance.  The Pick a Payment loans featured a very low start rate where the minimum payment was not enough to cover the total interest due each month.  Consequently, the borrower's loan balance grew as the deferred interest was added onto the back of the loan.  Decreasing home values and increasing loan balances have made for a toxic combination for many homeowners.  The pressure is on to offer Wachovia loan modification help to as many struggling borrowers as possible.

Homeowners seeking a Wachovia loan modification must qualify by:

  • principle residence only
  • single family home or condo (not multi units allowed)
  • maximum 45% debt ratio

Homeowners must prove that they reside in the single family/condominium as their primary residence and submit financial statements detailing their total housing expenses-principle and interest, taxes, insurance and HOA if applicable, do not exceed 45% of their gross monthly income.  Some Wachovia loan modification programs

require the borrower to simply state their income, meaning that pay check stub, W2's, etc. need not be provided.

Wachovia loan modification help may include:

  • Note rate modification featuring: 2% year one, 4% year two, note rate year three
  • Missed payments can be included in new loan
  • Targeted for homes with declining value
  • Eliminates deferred interest or negative amortization

Borrowers with a Wachovia loan payment rate of more than 2% currently may be offered a loan modification that features a 2% payment rate fixed for the next 2 years.  This Wachovia loan modification program would still allow for negative amortization and is offered as a temporary measure to give the homeowner time to recover from a financial hardship.

Struggling homeowners seeking a solution to their unaffordable Wachovia home loan should start by learning about the loan modification process before contacting their lender.  Unfortunately, not all borrowers will qualify so it is important to know the lender guidelines to increase your chance of approval.

You can get all of the up to date and accurate loan modification information you need in The Complete Loan Modification Guide.  This is a low cost, easy to read handbook that you can order and download right online.  The Complete Loan Modification Guide will provide you with everything you need to prepare a professional and acceptable loan modification application.  You are given step by step directions on how to calculate your debt ratio, assistance to write an effective hardship letter, learn your legal rights and provided with all of the required loan modification forms.  Get the help you need-order and download The Complete Loan Modification Guide now.
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