Wells Fargo Home Loan Defaults–Are Home Loan Modifications Assisting Homeowners With Foreclosure Prevention?

Wells Fargo has offered modifications through the Making Home Affordable Program and from direct mortgage assistance programs to homeowners who faced defaulting on their home loan or foreclosure. While some of these modification efforts have been successful, there are still troubles that remain for some homeowners who are unable to benefit from this type of mortgage assistance.

There are reports that indicate homeowners with a variety of mortgage servicers, like Wells Fargo, have had difficulty meeting mortgage payments even when a modification plan was offered. Defaults during trial modifications or permanent modifications have been problematic and there is concern that these programs are not helping as many homeowners as they could.

Reports indicate that in-house modifications made directly from servicers have assisted more homeowners than the Making Home Affordable Program, but there is said to be a higher percentage of defaults in the servicer modifications than from those made under HAMP guidelines. It has been stated that some in-house modifications do not lower a homeowner’s mortgage payment as low as programs from the Home Affordable Modification Program, which could attribute to troubles from servicer-direct modifications.

Yet, factors like unemployment remain a major problem for many homeowners as reductions in mortgage payment obligations, interest rates, and even extended mortgage terms have been unhelpful. While Wells Fargo and other mortgage servicers continue to provide foreclosure prevention assistance for some, there are more homeowners who are calling for changes in these modification plans so that defaults will decrease and more homeowners will be able to avoid the loss of their home despite financial and economic difficulties.