Homeowners with mortgage servicers like Wells Fargo are understandably concerned about foreclosure as it relates to home loan modification programs and foreclosure prevention options. Wells Fargo has been one of the major servicers in our nation who has participated in the Making Home Affordable modification program, but homeowners still continue to struggle and face foreclosure despite assistance programs that may be available.
Recently, some financial institutions have stopped foreclosures in various states in order to review the legality of these proceedings, which has caused a great deal of concern for many homeowners who both lost their home or purchased foreclosed homes. Yet, for some servicers, foreclosure is less of a problem since homeowners who may have a difficult time meeting their mortgage payments have the option of alternative modifications on their home loan.
The August 2010 Making Home Affordable servicer report stated that for homeowners who were not accepted for a trial modification, foreclosure completions from Wells Fargo number at 4,304. That number was through the month of July and had dropped from the previous month which stood at 4,931 foreclosure completions for Wells Fargo.
While some homeowners are simply unable to benefit from home loan modifications due to factors like the loss of their job or cutbacks in wages at their place of employment, it’s hoped that homeowners who are struggling with their mortgage may be able to find assistance through either the governmental modification program or in-house modification plans directly from servicers.
These private modifications, which provide an alternative to the Making Home Affordable modification plan, have been said to have helped a greater number of homeowners but there are homeowners who are still defaulting when a modification is in place, which typically leads to foreclosure. While employment difficulties still remain present for Wells Fargo homeowners, it’s hoped that with various modification programs available and alternate foreclosure prevention plans in place, more homeowners may be able to avoid the loss of their home until a better financial situation can be gained.