Homeowners with a Wells Fargo home loan have, like many homeowners with various servicers, attempted to find a more affordable monthly payment on their mortgage when financial difficulties arose and home loan modifications were made available. Yet, these modification efforts from mortgage servicers in the Making Home Affordable Program aren’t always beneficial for every homeowner, but foreclosure alternative plans through short sales and deed in lieu of foreclosure programs have also been made available to homeowners who face the loss of their home.
Wells Fargo is one of the top mortgage servicers who participates in these foreclosure alternatives through the Making Home Affordable Program and has seen some success in these programs. However, there are servicers who have seen a drop in these foreclosure alternative plans over the past months, which has many concerned over whether homeowners are simply not being offered these assistance options or if more homeowners are just not qualifying.
Yet, homeowners who had their trial modification canceled by Wells Fargo, according to the September 2010 Making Home Affordable servicer report stated that 4,911 homeowners were in the process of either a short sale or deed in lieu of foreclosure plan, as of August. Yet, the October report, which tracks data through September, stated that 6,141 homeowners with a canceled trial modification are in the process of one of these foreclosure alternative programs.
Also, homeowners with Wells Fargo who were not accepted for a trial modification sought increases during this same time span concerning foreclosure prevention efforts through short sales and deed in lieu of foreclosure. Again, the September 2010 Making Home Affordable report stated that 3,565 homeowners not accepted into a trial modification program were in the process of a short sale or deed in lieu of foreclosure program but that number increased to 4,760 homeowners in the process of a foreclosure alternative plan, according to the October report.
These foreclosure alternatives are not available to every homeowner, and there have been problems which have arisen in some cases, like short sales, where a homeowner was unable to find a buyer for their underwater mortgage. Yet, homeowners who are struggling with modifications or do not qualify for a home loan assistance plan and feel that foreclosure is inevitable are being prompted to talk with their servicer about these alternative options which may help them avoid the foreclosure process despite the fact that they are losing their home.