Homeowners with Wells Fargo may be able to take advantage of a mortgage principal reduction program that has been set in place by the Obama Administration to help homeowners that are considering walking away from their mortgage. Homeowners that owe more on their mortgage that their home is worth have been simply leaving their house behind and mortgage unpaid, due to their frustrating circumstances.
Yet, an initiative set forth by the Obama Administration wants to offer a mortgage principal reduction to homeowners that keep up their mortgage payments. Over a set period of time, homeowners would see their principal reduce as they continued to make payments until eventually the principal is forgiven.
Principal reductions aren’t new, but there is a new stress on making more reductions for underwater homeowners. Keeping homeowners from walking away from their homes is hoped to be enough to get more lenders on board with these principal reductions.
If you are a Wells Fargo homeowner and in need of assistance in your underwater mortgage you may want to check with your lender on options available to you in the form of principal reductions.