Amortization Plan

Many homeowners who are stuck with an adjustable rate home mortgage will qualify for the Wachovia loan modification program. Wachovia is trying to eliminate its high risk toxic assets and is more willing than ever to offer a lower interest rate, affordable payments and reduced principal balance on mortgages. Many high risk variable rate mortgages were issued by World Savings, which was subsequently bought by Wachovia and now Wachovia s loan modification program is trying to perform loan modifications on many of these high risk mortgages.

Wachovia has a large portfolio of negative amortization loans, which means they started with a very low introductory rate but have since been reset to substantially higher rates. These higher rates are simply too high for most homeowners and therefore many of these mortgages are becoming delinquent. Since the value of homes has decreased, it is no longer possible to refinance and with many of these mortages on Wachovia’s books being toxic, Wachovias loan modification program is processing more loan modifications than ever before.

What are the Benefits to a Wachovia Loan Modification?

1. 2% Note rate for first year
2. 4% note rate for year three
3. Missed payments can be added to the principle
4. Foreclosure process is stopped and you stay in your home!

The 2% interim rate is designed to help homeowners who have faced a financial hardship become current again before the rate is reset to a reasonable rate.

How do I Qualify for a Wachovia Loan Modification?
1. The mortgage must be for your principle residence
2. 45% debt ratio (Loan Modification Kits can help you calculate this value)
3. It must be a single family home

How do I Apply for a Wachovia Loan Modification?

You need to learn as much about the process as possible and then apply for a loan modification. To apply you can hire a loan modification company for $1500-$3000 to simply fill out forms available in many high quality loan modification kits. It is essential when applying that you have all the documentation that your loss mitigation specialist may want, if you leave out a single document it can delay your Wachovia application weeks and possibly cost you your home. Document checklists are critical when applying.

By: Jonathan Gillham

Tags: Amortization, Debt Ratio, Foreclosure, Introductory Rate, Mortages, Principal Balance, Quality Loan, Wachovia Mortgage
Posted in Finance · February 26th, 2008 · Comments (0)

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