Homeowners with Wells Fargo who have been unable to acquire a trial or permanent home loan modification have, like many other homeowners with various mortgage servicers, had to face foreclosure as a result. Sadly, there are numerous homeowners who have lost their home over the past months due to the fact that they can simply no longer afford their monthly mortgage payments, and for some this is true even when a mortgage assistance program is in place.
Yet, there are homeowners who are putting the blame for their foreclosure difficulties on the shoulders of mortgage servicers as revelations over foreclosure documentation practices weeks ago left many homeowners in a position where they felt they were not being given a fair opportunity to avoid the loss of their home through a foreclosure prevention modification plans.
It’s understandable that there are some homeowners who simply will be unable to afford their home as a result of financial problems in their life, but there are still many financial institutions who are processing foreclosures for homeowners who have attempted to modify their mortgage payment. As an example, Wells Fargo, according to the September Making Home Affordable Program, had 19,094 foreclosure starts and 5,657 foreclosure completions for homeowners who had their trial modification canceled, as of August.
It was then reported in the October Making Home Affordable Program that the same homeowners who had their modification trial canceled saw 18,384 foreclosure starts and 6,647 foreclosure completions, both of which were totals through the month of September.
While there were homeowners who have been able to take advantage of home loan modification plans and avoid the loss of their home, there are still problems that remain with foreclosure as some individuals are simply unable to meet their mortgage payment requirements within a trial modification and redefault as a result. Servicers like Wells Fargo have not escaped criticism from homeowners, but there are problems with documentation, debt to income ratio requirements, and again, the ability of homeowners to meet their modification payment requirements.
While there was a reduction in the total foreclosures starts for homeowners with cancelled trials between the September and October Making Home Affordable reports, more homeowners are continuing to seek mortgage assistance due to factors like unemployment, which have severely hindered their financial life. No mortgage servicer has been perfect in their implementation of these modification plans, but some homeowners have traditional modifications, alternative modification options, and mortgage extension programs from HAMP which may still be beneficial in preventing the loss of a homeowner’s property.