Wells Fargo homeowners haven’t been able to escape troubles in their home loan related to underwater mortgages or unemployment. So, it is hoped that new, expanded programs from the Obama Administration will help homeowners get back on their feet through principal reductions and forbearance programs.
Homeowners have had trouble in the home loan modification program for a number of reasons, one of the most common being second liens. However, these new programs are looking to take steps to provide more options for homeowners that are struggling to pay their mortgage or have a home whose value has dropped so low that they see no point in staying with it.
Forbearance programs are hoped to afford homeowners without a job a period where they are not required to make payments on their home, or at least have a drastically lower payment, and those homeowners with an underwater mortgage may be able to get a principal reduction plan, that will make what they owe on their home more in line with the home’s value.
While there have been troubles in the home loan modification program, Wells Fargo homeowners, as well as homeowners with other lenders that are struggling in their mortgage, should be aware these new options are available.