Wells Fargo Home Loan Modification Plans–Are In-House Modification Programs A Better Option?

Home loan modification plans from Wells Fargo have seen some success throughout 2010 as the overall number of permanent modifications which have been made had increased within the Making Home Affordable Program. While there are troubles for homeowners which remain in place and continue to necessitate assistance in order to avoid foreclosure, these modification plans from the federal modification program are not alone in that extension programs have been offered to address certain homeowner issues and proprietary home loan modifications directly from in-house programs are also available from servicers like Wells Fargo.

Yet, a recent review by the Congressional Oversight Panel has noted that the number of homeowners who have been aided in the federal modification program are not on pace to meet the initial goal. In fact, many believe that only around one-quarter of the homeowners who were originally hoped to be assisted are likely find a permanent home loan modification plan from the Making Home Affordable Program.

Obviously, the blame for this has gone around and there are plenty of reasons why homeowners may have not found the assistance they sought through the federal mortgage assistance program. Yet, again, despite servicers like Wells Fargo who continue to offer federal aid from these governmental modifications, proprietary home loan modifications are said to be offering more homeowners assistance when it concerns finding affordability in their monthly mortgage payment.

In-house home loan modifications are available to a wide number of homeowners as numerous servicers are using these plans to offer homeowners a more affordable option on their home loan. Usually, modifications use a combination of term extensions, interest-rate reductions, or even principal reductions in rare cases, in order to accommodate homeowners who are having trouble in their mortgage. Yet, in-house modifications and federal modifications have had their fair share of complaints from homeowners who feel that they are either not able to provide sustained affordability to homeowners in need, or servicers are simply not doing all they can to prevent foreclosure.

There have been reports, though, which have shown that proprietary modifications made directly from servicers have offered a higher number of homeowners assistance, when compared to the federal modification program. Obviously, problems continue between homeowners and servicers, but there are options outside of traditional, federal modifications which may be helpful to homeowners who face foreclosure. While there is concern that the number of foreclosures seem to be growing closer to the number of homeowners who are receiving permanent modifications on their home loan, it’s hope that in the coming months servicers like Wells Fargo and other major financial institutions will either be able to address issues in the housing market through federal modification plans or in-house, alternative modification options.