Homeowners that currently have a loan with Wachovia and are struggling to sustain up with their mortgage payments may qualify for a loan modification. Loan modification is a program that allows borrowers, whom net themselves in terrible financial situations, modify their mortgage loan. These modifications are made so that the loan will be more affordable to the borrower, in order to preserve the borrower from defaulting on the loan and going into foreclosure.
Who Qualifies for a Modification from Wachovia?
While many homeowners may want to receive a modification of the terms of their home loan, not every borrower will qualify. To qualify, a borrower must expose that they are struggling to sustain up with their mortgage payments due to a depreciation in the value of their home, decrease in income, increase in expenses, or increase in monthly mortgage payments. The home receiving a modification must be a single family home and relieve as the borrowers unusual spot. Additionally, borrowers must not have a debt to income ratio that exceeds 45%. Lastly, while a home may be in the foreclosure process, the date that the home will be sold cannot be less than one month away.
If a borrower qualifies for a modification of their home loan with Wachovia, a number of terms are subject to change in order to acquire their loan more affordable. These changes include lowering interest rates to as improper as 2%, lowering monthly mortgage payments to gain them more affordable, amortizing missed mortgage payments, as well as a few other kindly modifications.
If a homeowner does not fit into these qualifications, he or she will be unable to receive a modification of their Wachovia loan. However, many homeowners do fit within these qualifications, yet are tranquil denied after applying for a loan modification. Fortunately, there is recourse that a borrower can acquire to assist their chances of being approved.
What to do if Wachovia Denies a Homeower’s Modification Application:
Many times, first time applicants are denied for a modification of their loan. This can be due to missing or improper information or documentation, income that is too high or improper, or because a property is too far along in the foreclosure process. Fortunately, many of these problems can be corrected.
If a borrower is denied for a loan modification, it is critical that he or she does not continuously miss mortgage payments. While making corrections to a borrower’s application, all mortgage payments should be made, so that the home does not go into foreclosure before a borrower can receive a modification. Also, the application should be thoroughly checked for errors and changes should be made in any income information, so that the debt to income ratio remains below 45%. While receiving a modification from Wachovia may be time tantalizing, it is well worth the distress of avoiding foreclosure and making mortgage payments more affordable.