Homeowners with a Wells Fargo home loan have, like numerous homeowners with various servicers, had difficulties meeting their monthly mortgage payments over the past months, and as a result many have turned to federal home loan modification assistance which is offered by many major financial institutions through the Making Home Affordable Program. Yet, there is concern over whether homeowners are able to avoid defaulting on their home loan payment after a modification plan has been set in place.
Homeowners who redefault are a common problem within the home loan modification program of not only Wells Fargo, but numerous financial institutions as well. Some homeowners have been offered trial modifications through the home loan modification plan, but were still unable to make their monthly payments, and there is some data which suggests the longer a homeowner is in the modification program, the higher the likelihood they may default.
Sadly, servicers within the modification program have been seeing fewer permanent modifications from the federal home loan assistance plan and more redefaults from homeowners who are simply unable to sustain their modified mortgage payment. Obviously, unemployment remains a large factor in these home loan modification defaults, but there is also concern that servicers are beginning to slow in their number of permit modifications made each month.
Yet, servicers like Wells Fargo have seen increases in the number of federal permanent home loan modifications they have made this year, despite the fact that a small percentage of permanent modifications is being seen in the overall program from month-to-month. Many homeowners attribute this to the lack of participation on the part of servicers and improper modification procedures and foreclosure practices.
However, there are those who feel that permanent home loan modifications from the federal home loan modification program may be falling due to the fact that the servicers are implementing more proprietary modifications instead. In-house assistance through home loan modifications from servicers like Wells Fargo do offer both federal and alternative modification assistance from plans made directly to homeowners from their servicer.
While there are still problems that remain for many homeowners and with modification plans in general, factors like unemployment or a reduction in a homeowner’s wages are, again, obviously causing many of the problems within the housing market, and for some individuals these modification efforts are simply no help. While some servicers may offer unemployment forbearance options, homeowners are still being prompted to contact their servicer early if financial troubles arise so that preventative measures may be taken if a homeowner’s financial situation becomes troublesome and they are unable to make their mortgage payment.