Wells Fargo, despite posting profits for the fourth quarter in 2009, have said that defaults on homes are still taking a toll and with unemployment still a huge problem, many worry that Wells Fargo, among other lenders, are going to see more trouble in the near future.
Despite making 8,424 permanent home loan mortgage modifications, many wonder if Wells Fargo would benefit, or suffer less loss from defaults, if they were to make more home loan modifications permanent.
There has been trouble with the home loan modification program and many lenders are being asked to do more to make home loan modifications permanent, but opponents of the program say that unless unemployment is stopped there is little to be done to avoid foreclosure.
Arguments in favor of the program suggest that if lenders like Wells Fargo made more permanent modifications there would be far less defaults on home loans and Wells Fargo would fair much better, even with some homes redefaulting.
It’s no secret that housing and unemployment have taken its toll on the economy, but many people are asking the question: what should we do about homes until jobs are created?
Wells Fargo, through the home loan modification program has tried to help homeowners achieve a more affordable rate, and there have been problems in doing that, but should big banks like Wells Fargo take a chance and put their modification program in overdrive to help as many homeowners as they can?
Doing so could very well put many homeowners in a position to avoid foreclosure, which would save Wells Fargo from a loss of profits on defaults, but are big banks willing and able to do this and can homeowners, in light of such high unemployment, keep up their mortgage payments even with a modification?
