Wells Fargo is one of the big lenders participating in the home loan modification program, but despite having some success, lenders like Wells Fargo are still having trouble with underwater mortgages and unemployed homeowners. However, the Obama Administration has set out new programs to provide forbearance for unemployed homeowners and principal reductions for underwater mortgages.
While these initiatives are now being put into effect, they have not been stressed thus far in the modification program. Many unemployed homeowners are looking for additional assistance in their mortgages and the new programs stress forbearance for unemployed homeowners or a mortgage payment based on a small amount of their income.
Frustrated homeowners with underwater mortgages have been walking away from mortgages by greater numbers, but the new additions to the home loan modification program is stressing principal reductions. While there are conflicting feelings about principal reductions, many feel that it is necessary to keep the housing market from sinking once again.
Wells Fargo homeowners that may be struggling might want to look into their options with these new forms of aid and see what your lender can offer. While the Obama Administrations stress on these programs has just begun, but it is hoped to help many homeowners down the road.