Various financial difficulties and trials have arisen for homeowners over the past months and, for servicers like Wells Fargo, there are some individuals in a situation where a modification or other mortgage assistance program simply will not help. Problems from foreclosures have arisen in the lives of some homeowners, but bankruptcy has been another difficulty for homeowners with a variety of mortgage servicers within the Making Home Affordable Program.
Sadly, there have been homeowners who, upon being denied modification assistance, have faced bankruptcy as a result and data for these individuals has been recorded, in part, by the Making Home Affordable Program. For Wells Fargo, it was reported in the October HAMP report that 1,071 homeowners were currently in the process of bankruptcy after not being accepted for a trial modification while 722 homeowners who had their trial modification canceled are also facing bankruptcy as well.
Data like this often points to the fact that despite various mortgage modification programs and assistance plans being made available, there are still problems in the personal lives of homeowners and with mortgage modification plans in general, which have made the personal financial life of many homeowners difficult. Obviously, servicers like Wells Fargo have had their fair share of criticism concerning these modification efforts, but many financial institutions argued that the requirements for homeowners to participate in the federal modification program are one of the main reasons homeowners may be unsuccessful in finding foreclosure prevention assistance.
Some homeowners simply do not qualify for this form of assistance, while there are indications others do not properly submit documentation that will allow them to move forward in the modification process. Yet, there are obviously homeowners who feel mortgage servicers are the cause of many of the problems which homeowners face within the modification plan and, as a result, new efforts should be made by these financial institutions as foreclosures and bankruptcies are just a few of the problems which homeowners continue to face.
While there are no perfect servicers, modification plans, or homeowners, many advisers are still making homeowners aware of possible assistance options for their situation, as federal modifications and in-house mortgage assistance plans are available directly from servicers, as well as, extension programs and state-specific foreclosure prevention programs. Understandably, not all homeowners will find the assistance they need to prevent the loss of their home, but it’s hoped that as more of these foreclosure prevention efforts become available and calls continue for servicers to make a greater effort to help homeowners avoid the loss of their home, problems like bankruptcy and foreclosure will begin to decrease in the coming months.