Frustrated borrowers who have been trying to get a Wachovia loan alteration to transform their high interest rate, unaffordable home mortgage can apply for a streamlined home retention program administered by Wells Fargo Bank. Wells Fargo finalized their acquisition of Wachovia and now holds a risky portfolio of approximately $120 billion in home loans. Borrowers with loans being referred to foreclosure or those that are in foreclosure will receive an extension until February 29, 2009 to allow them time to contact and work with the lender to find a new solution that is most appropriate for their circumstances.
The Wachovia loan alteration program will seek to modify the current payment using a combination of options with the goal being to arrive at a new payment that equals 38% of the borrowers gross monthly income. Here are some of the options obtainable to Wachovia loan alteration candidates:
- Term extension up to 40 years
- Interest rate reductions with elimination of the possibility of negative amortization
- Principal forbearance with no interest charged on the deferred amount
- Principal reductions for borrowers in certain geographic areas experiencing high character value decline
Homeowners wishing to apply for a Wachovia loan alteration will be serviced by an increased staff of home retention counselors with more staff to be additional in 2009. Each application will be reviewed on a case-by-case basis and a determination will be made which borrowers will qualify for a loan workout solution. The exact number of customers expected to be helped is not known, however not all homeowners will qualify.
Homeowners can increase their chance of successfully qualifying for a Wachovia loan alteration by learning about the guidelines for approval, and understanding how to prepare and submit their application properly. A qualified candidate will be able to prove to Wachovia that they will be able to provide and continue the new alternation payment and that they have made continued home ownership a priority.