Wells Fargo Home Loan Mortgage Modification Program–Are Trial Modifications Helping Homeowners?

Troubled homeowners who have a Wells Fargo home loan have been seeking assistance through the modification programs that were implement by the Obama Making Home Affordable initiative. Many of the nation’s top mortgage servicers have been participating in this program to help homeowners but there have been conflicts and troubles that have arisen between servicers and homeowners.

There are those who believe that trial modifications are either not offered in great enough number, so that troubled homeowners can avoid foreclosure, or these trial modifications are not financially helpful for homeowners who are unable to meet their current home loan payment obligation. For instance, according to the July 2010 Making Home Affordable servicer report, Wells Fargo has started 177,267 trial modifications.

However, as of July 2010, the report indicates that, for Wells Fargo, only 22,338 active trial modifications are still ongoing, with 46,732 permanent modifications having been made. While there have been homeowners who have moved from the trial phase to a permanent home loan modification, and homeowners who have regained their ability to continue in their regular mortgage payment schedule, there have been cancellations from Wells Fargo for homeowners in a trial modification plan.

The number of Wells Fargo homeowners who had their trial modification canceled and had to seek alternative assistance or face foreclosure is reported to be at 98,987, which is through June 2010. Also, homeowners who were not even accepted for a trial modification and had to find alternative assistance or who faced foreclosure are numbered at 100,448 for Wells Fargo.

While there have been alternative home loan modifications offered from mortgage servicers like Wells Fargo, many are wondering if these cancellations are the result of poor program implementation by mortgage servicers or if homeowners are simply unable to meet their home loan obligations due to factors like unemployment. While it’s understandable that homeowners cannot remain in their home for free, there are many individuals who are angry with mortgage servicers and the modification program who believe that more can be done to find affordable mortgage solutions for homeowners who are troubled at the present time.