Wachovia Mortgage is one of the numerous mortgage servicers that have been participating in the Making Home Affordable Program, and in spite of some success, there are more homeowners with Wachovia who have become delinquent on their home loan. The reasons for homeowner delinquency usually center around unemployment or underwater mortgages, but there is concern that homeowners who are seeing more difficulties arise in their home loan situation will need servicers to begin revamping their modification efforts.
In the October Making Home Affordable Servicer Report, the Treasury Department has compiled data for various mortgage servicers, and in Wachovia’s case, there was an increase in the number of homeowner delinquencies from August to September. According to the reports, 25,165 Wachovia Mortgage homeowners were at least 60 days delinquent on their home loan as of August 31, 2010. This number increased to 26,711, as of September 30, 2010 and has many analysts concerned over the state of the housing market.
It’s understandable that the slow economy and dreadful job market have many homeowners struggling to make ends meet, but there are reports that more homeowners have begun to fail out of the home loan modification program at a rate which is higher than those who are being accepted into permanent modification agreements.
While this will obviously vary from one mortgage servicer to another, homeowners with servicers like Wachovia Mortgage are in the same boat as homeowners with other servicers in that they are falling behind on their mortgage payments, seeking home loan modification assistance to prevent foreclosure, but in some cases, are not having the success they need to save their home.
There are indications that in-house modification plans directly from servicers are having a greater amount of success in these federal home loan modification plans, but there have been calls from officials to mortgage servicers requesting that they began to refocus their efforts on foreclosure prevention through home loan modification plans. Obviously not all homes will be saved from foreclosure, but with homeowner delinquency still on the rise and modifications beginning to slow, many feel that unless servicers are able to provide affordable and sustainable mortgage assistance, the housing market and homeowners may suffer for a longer period of time.