Wells Fargo has seen ups and downs in the Making Home Affordable Program, but while they have experienced some success in their home loan modifications, there are now expanded programs that are set to help homeowners with an underwater mortgage and those who are unemployed.
Underwater mortgages have been causing trouble for homeowners and the unemployment situation has caused the modifications on home loans to provide little assistance as unemployed or underemployed homeowners are still having trouble paying their mortgage.
With these new expansions, it’s hoped that principal reductions and unemployment forbearance programs will help those in need. Homeowners that keep up with payments for a set amount of time may qualify for a principal reduction and unemployed homeowners may have their mortgage payment reduced or wiped out totally for a few months.
While these programs are still new, there have been forms of them around for a long time, so these expansions from the Obama Administration shouldn’t have too much work to do in terms of drawing up a plan as to how principal reductions and unemployment forbearance programs will work. Yet, with lender participation being voluntary, it will be a while before we see how effective these expansions really are.