Wachovia Loan Modification You Must Know about

Wachovia currently offers loan modification to some of their mortgage customers, but you need to know more details about that program. Loan modification is something that has been pushed by the federal government and it's something that the banks are gladly offering. In short, they need for people to pay off their mortgages, because the foreclosures are killing them from a pure liquidity standpoint. For those who qualify, there is a lot to be gained from entering a program like this. Here are the things you need to know about modification.

First of all, you should know what the ultimate goal of modification is at this point. Wachovia's modification plan is not in place to pay off your mortgage for you or to be a magic bullet of any sort. You will still have to do a lot of work on your own if you are going to get it paid off. Instead, the goal is to bring your payment down to a level that is reasonable. Many people have run into circumstances that make it almost impossible to pay off their loan on time every month with the current terms. Modification brings the payment amount more in line with what you're capable of given your situation.

So if the goal is lowering your payment amount, you need to know how they plan to do that. Wachovia's loan modification program is like many in that they have quite a few different ways that they can bring down your payment amount. The best way for consumers is when the bank decides to forgive some of your mortgage principal. Perhaps they knock a few thousand dollars off of the top. This does not happen all that often, though, so you are probably looking at a different scenario. One other solution is to lower your interest rates for the time being, with the understanding that they will go up when you're back on solid financial footing. The loan term can be extended, as well.

So who can get in on this program? If you are with Wachovia and you've seen some change in your financial situation, then you have a shot. People who have endured some form of "hardship" can qualify, as well as those who have seen their home values dip below the amount that they owe. Hardship, in these terms, is defined in a number of different ways. You might qualify based upon disability, job loss, death in the family, or something similar.