Wells Fargo has been one of the top lenders in the Obama Making Home Affordable Program, which has been set in place to provide assistance for homeowners struggling to meet their current mortgage payment. The home loan modification program was originally used by many lenders simply to give homeowners a lower interest rate, or monthly mortgage payment so that they could avoid losing their home.
However, new problems have arisen for homeowners and many are in a situation where a simple mortgage modification would not be beneficial. Programs like short sell options, principal reductions, and for some homeowners, underwater mortgage refinancing, have all been proposed by the Obama Administration’s Making Home Affordable Program for lenders to use in order to help homeowners.
The Making Home Affordable Program has been asking mortgage lenders to use various mortgage assistance options in order to meet the specific needs of homeowners who are struggling to make their home loan payment or who know that they can no longer stay in their home but want to avoid foreclosure. Everything from second lien modifications to foreclosure prevention plans to have been suggested and plans have been drawn up for the implementation of these programs, but there are still homeowners who were angry over the lack of assistance they have gotten from their lender.
Homeowners have horror stories from various lenders and believe that not all lending institutions are willing to help homeowners who are struggling to make their mortgage payment. Recently, a Congressional hearing was held and representatives from top lending institutions within the home loan modification program were present to defend their banks, mortgage assistance plans, and success.
There have been improvements in the home loan modification program, and Wells Fargo for instance, has made 40,759 permanent home loan modifications as of May, according to a report from the Making Home Affordable Program’s monthly reports. Yet, homeowners have been dissatisfied with the success that many lenders have had in helping homeowners as many believe lenders could do more.
While there is no perfect lender, Wells Fargo does have various mortgage assistance payment plans that could help homeowners who are in need. Getting the mortgage assistance a homeowner needs might require a very difficult road, but there are plans available to help homeowners who may be struggling to simply make their home loan payment.