Homeowners who have a home loan from Wells Fargo have been in need of very as forms of mortgage assistance over the past month. While this is not something that is exclusive to Wells Fargo homeowners since many mortgage lenders have been using the Making Home Affordable Program to help homeowners in distress. Yet, there have been troubles when it comes to the trial modification period for some homeowners.
There are lenders who have agreed that some homeowners simply do not make it through the trial modification phase of the Making Home Affordable Program. According to the modification report for June, homeowners are often denied a permanent modification if their debt to income ratio is below 31%, they have filed improper documentation, or they default within the trail period.
However, these trial modifications have caused many homeowners to criticize the top mortgage lenders in the Making Home Affordable Program and have drawn anger from countless homeowners who were denied a permanent home loan modification. Wells Fargo, as of May 2010, had 86,607 homeowners whose trial modification was canceled. This, obviously, has created many frustrated homeowners, but some have gone to alternative forms of assistance.
For instance, the Making Home Affordable report for June 2010 as stated that out of the total number of homeowners whose modification plan was canceled 56,821 were given alternative modifications, 544 were given a payment plan that did not involve a formal loan modification, and 6,592 homeowners were current on their mortgage.
While these alternative assistance numbers may be good for some homeowners who may have had their trial modification canceled, critics of Wells Fargo state that many homeowners have entered into foreclosure, bankruptcy, or a short sale/deed in lieu of foreclosure plan also. The report states that 435 homeowners have entered into bankruptcy, 3,903 are in either a short sale or deed in lieu of foreclosure program, and 8,610 foreclosures have begun with 1,774 being completed.
There have been difficulties in the modification program for a variety of homeowners with various lenders, but Wells Fargo has stated they are trying to correct these issues and plan to assign one representative to each account for a homeowner that is seeking a modification so as to avoid confusion or any missteps during the process.
It’s obvious that there are still many angry homeowners but those who are struggling to make their home loan payment are being advised to talk with their lender primarily before their financial situation becomes overwhelming. Homeowners who may want to seek sources of assistance outside their lender, when it comes to a modification, are often advised to be cautious of companies that offer to help deal with a lender in the modification program as many scams are currently in the works. Rather, homeowners are often advised to turn to reputable sources like the Making Home Affordable Program website for aid.