Home loan modification programs available from Wells Fargo have helped numerous homeowners find a more affordable monthly mortgage payment on their home and avoid foreclosure as a result. Yet, there are homeowners who have reported troubles when dealing with servicers, which has caused them to be denied mortgage assistance, or there are cases where factors like unemployment have simply made foreclosure inevitable.
However, some homeowners who may be facing the loss of their home have had the opportunity to work with Wells Fargo through a short sale or deed in lieu of foreclosure program, both of which are part of the foreclosure alternatives initiative to help homeowners avoid a formal foreclosure on their home.
According to the September 2010 Making Home Affordable servicer report, Wells Fargo has completed 4,911 short sales or deed in lieu of foreclosure plans for homeowners who had their trial modifications canceled and 3,565 short sales or deed in lieu of foreclosure programs for homeowners who were not accepted for a trial modification.
Homeowners who have suddenly come upon a difficult financial situation and are no longer able to afford their home loan obviously would rather find solutions through reduced payments or other foreclosure prevention efforts. Yet, these foreclosure alternative plans have been launched as a way to assist homeowners who are facing the loss of their home, or who may have other difficulties like underwater mortgages, but wish to avoid the stain of foreclosure on their credit history.
While there are still some adverse effects of these foreclosure alternative programs, homeowners may have an easier time overcoming the loss of their home if they work with their servicer rather than default or simply allow a foreclosure to take place. Not all homeowners may qualify for these foreclosure alternatives, but those who are able to take advantage may find that reentering the housing market in the future could be easier since some lenders may see these options more favorably than homeowners who simply choose to walk away from their home loan.