Wachovia Bank Loan Modification Questions and Answers

Foreclosure is an increasingly real fear for many homeowners as the economic crisis around us continues to drag on. Income may be going down, or you may have even been laid off and lost all your sources of income, and now you are struggling to make payments on your mortgage. Read this article to find out if Wachovia Bank loan modification is right for you.

You are a candidate for modification from Wachovia if you have taken out a mortgage loan from them, are the principle resident of a single-family home, and carry less than 45% of your gross monthly income in all types of debt. "Debt" includes credit card balances, overdue bills, and loans for home, school, and vehicles. While there are various loan modification plans available from Wachovia and not everyone is eligible, it's worth contacting your lender to see if you can modify your loan through them.

Contact a financial counseling service if you are serious about getting a loan modification. They will represent you and usually have lawyers working for them to watch out for your best interests. They prevent your bank from giving you the runaround or brushing over your case.

Before they were acquired by Citibank, Wachovia was in the habit of issuing "negative amortization" loans to people. These loans are characterized by high interest rates and monthly payments that increase over time. With the current state of the economy many people are unable to continue paying on their mortgages and Wachovia foreclosures are at record rates. Citibank is eager to convert these potential foreclosures into profitable loans again, and is rather amenable to granting loan modifications to eligible homeowners. There has never been a better time than now to get a loan modification from Wachovia.

Another option is open to you for modifying your loan if it is insured by Fannie Mae or Freddie Mac. Fannie and Freddie loans are eligible to get modification under a new government plan called the Making Home Affordable plan. The Treasury partners with lenders to motivate them (through monetary incentives, of course) to modify your loan rather than foreclosing on your home. You, the borrower, also get incentive payments for staying current on a modification. After a three-month trial period, the adjusted loan terms stay fixed for the next five years. Hopefully that will be enough to get you back on your feet and avoid foreclosure permanently.