Wells Fargo Home Loan Trial Modification Plans Drop But Are Homeowners Finding Other Assistance Options?

Wells Fargo saw a drop in the trial modifications that were currently in place within the Making Home Affordable Program between August and September. This was reported in the September 2010 Making Home Affordable servicer report, which also showed an increase in permanent modifications made by Wells Fargo as well.

However, some homeowners feel servicers are slowing in their efforts to provide home modification plans for homeowners who need a more affordable monthly mortgage payment. Yet, there are still options available for homeowners who are struggling to meet their monthly mortgage payment, but more problematic is the fact that homeowners are continuing to default even when a mortgage assistance plan is offered.

Yet, homeowners with Wells Fargo may have alternative assistance options through proprietary modification programs or extension plans from the Making Home Affordable Program. In some cases, the inability of homeowners to make their monthly mortgage payments even when a modification plan is in place can be traced back to factors like a second mortgage on their home. To correct these problems, servicers are using the Second Lien Modification Program, which is just one of the extension programs that is set in place to provide supplemental assistance outside of traditional modifications.

Despite the fact that in-house modification plans made directly from servicers are available, and said to be more helpful to a greater number of homeowners, there are still individuals who are unable to benefit from either the servicer-direct modifications or governmental mortgage assistance plans simply because of factors like unemployment.

Yet, servicers like Wells Fargo may also be able to offer assistance to homeowners through extension plans like the Home Affordable Unemployment Program, which may allow unemployed homeowners the opportunity to avoid foreclosure thanks to forbearance options. However, homeowners are being prompted to contact their primary servicer if they feel difficulties meeting their mortgage payment could become a problem, as homeowners who address their financial problems early stand a better chance at finding mortgage payment solutions in many cases.