Wells Fargo’s home loan modification program, which offers homeowners the opportunity to lower their monthly mortgage payment through a combination of rate reductions, principal reductions, or term extensions, has seen increases in the number of permanent modifications which have been made for homeowners who are struggling to meet their monthly mortgage payment. However, Wells Fargo’s participation in the Making Home Affordable Program has also brought homeowners opportunities to take advantage of extension programs which have been set in place to address specific homeowner issues.
Major mortgage servicers within the Making Home Affordable Program have all seen some success with permanent modifications, but there are still problems which have arisen for many homeowners as traditional modifications, or modifications alone, have simply not been helpful for some. For this reason, assistance for homeowners with Wells Fargo and other servicers has been presented through plans to address issues like unemployment or problems with second liens on homes.
Wells Fargo, being a participant in the Making Home Affordable Program, can offer homeowners who are unemployed the opportunity to participate in the Home Affordable Unemployment Program. This program allows homeowners to receive forbearance on their monthly mortgage payment for a set period of time, so that they may be able to find an employment or income opportunity which will allow for them to continue making payments or qualify for a traditional modification.
Also, servicers like Wells Fargo have seen trouble from homeowners who have second liens on their homes, as many of these individuals were unable to benefit from a traditional modification, since a second mortgage kept their monthly payment obligation too high. The Second Lien Modification Program may offer benefits for homeowners who have a second mortgage and are struggling to make their payments from month-to-month. Obviously, a reduction in a homeowner’s second mortgage obligation has brought benefits to those seeking an overall lower monthly mortgage payment, and for this reason they be available to homeowners who are still seeing trouble with their mortgage payment due to a second lien.
Understandably, not all homeowners may qualify for these modifications programs from Wells Fargo and other servicers, and these extension plans which are said to help specific homeowners may not address all issues as well. While there are foreclosure alternative options like short sales and deed in lieu of foreclosure plans, homeowners may still use traditional home loan refinancing or a proprietary modification if they are not helped by a federal modification or extension plan.