Home loan modifications from Wells Fargo have increased over the past months, which has been helpful to many who are struggling to make their mortgage payments. Yet, not all homeowners can qualify for a home loan modification and some are even unable to find alternative assistance options if they are denied mortgage assistance through the Making Home Affordable Program.
According to the July Making Home Affordable servicer report Wells Fargo homeowners have faced bankruptcy in certain cases after being denied a trial or permanent modification on their home loan. For instance, 512 homeowners faced bankruptcy when they were subject to cancellation of their trial modification program. Of the homeowners who were not accepted into a trial modification plan, 1,054 filed for bankruptcy, which many believe to be a low percentage since these figures are through June of 2010.
Overall, homeowners who were denied a trial modification number 19,808, which is the total from the top eight servicers in the Making Home Affordable Program. Of these top servicers, there were a total of 11,145 bankruptcies for homeowners who had their trial modification canceled. Many would argue that Wells Fargo has a small percentage of these bankruptcies, but there are individuals who believe more needs to be done.
While claims that the modification program has begun to slow have surfaced and homeowners are continuing to suffer due to factors like unemployment, there are more options being made available to homeowners so that foreclosure and bankruptcy may be avoided. Wells Fargo is one of the top servicers who participates in not only the modification program but extension programs of the Making Home Affordable Program and they also offer in-house mortgage assistance plans to homeowners.
No lender has been perfect in their implementation of mortgage assistance plans, but homeowners do have alternate routes they can take if a modification is unavailable. Mortgage servicers can offer assistance but there are also sources like the Making Home Affordable website and Hotline that can provide information to troubled homeowners as well.