Foreclosure alternative options from Wells Fargo made available to certain homeowners who qualified for these assistance options which are extension plans from the Making Home Affordable Program. The Home Affordable Foreclosure Alternatives initiative offers homeowners the opportunity to participate in a short sale or deed in lieu of foreclosure program in cases where they are unable to continue meeting their monthly mortgage payment obligation.
Servicers like Wells Fargo have completed plans for homeowners, in certain cases, where they may not have qualified for alternative mortgage assistance plans or may have suffered from factors like a severely underwater mortgage. Individuals who have hoped to take advantage of these alternative programs to foreclosure may have been unable to successfully qualify as certain homeowners have simply wanted to walk away from a situation, like one where negative equity is involved, and be free and clear from their mortgage debt.
While some financial institutions have been cautious to grant homeowners these alternative plans, there are opportunities available through some of the nation’s top servicers like Wells Fargo for these foreclosure alternative options. As an example, the September 2010 Making Home Affordable report indicates that Wells Fargo has made almost 5,000 short sale or deed in lieu of foreclosure options available to homeowners who had their trial modification canceled in HAMP and has made over 3,000 foreclosure alternative plans available to homeowners who did not qualify for a trial modification.
These foreclosure alternative plans may not have been widely used by all servicers, as many require that homeowners seek out assistance options from plans like modifications before turning to these foreclosure alternatives. Yet, these opportunities may still be available to certain Wells Fargo homeowners if they have suddenly come upon a situation where they can no longer meet their monthly mortgage payment.
Understandably, homeowners wish to prevent foreclosure at all costs, but in cases where the loss of a home is inevitable, these alternatives to foreclosure may be beneficial in that they could allow homeowners to get back on their feet in a timely manner if they can forgo a formal foreclosure.