Homeowners with Wells Fargo are asking that more be done in terms of principal reductions for homeowners that are suffering from an underwater mortgage. Homeowners everywhere are having trouble with declining home values leaving many owing more on a home than the home is worth.
Wells Fargo has been one of the big lenders to state that they don’t feel principal reductions are the best solution for homeowners that owe more than their home is worth. Many lenders echo this opinion, as they believe principal reductions shouldn’t be used just so homeowners can profit from the sale of their home later.
It has been stated by Wells Fargo that they are willing to make principal reductions for homeowners that are in an area of severe home value decline where there is little possibility to recoup their home’s value or where homeowners are struggling financially but still have a stable income and want to stay in their home.
Those homeowners that are struggling with an underwater mortgage are being advised to contact their lender about options available to them.