Wells Fargo Home Loan Modification Programs To Prevent Foreclosure–Are Modifications Still Helping?

Home loan modifications from Wells Fargo remain in place for homeowners who face foreclosure due to a variety of financial difficulties that range from unemployment to underwater home loans. Modifications have been used throughout 2010 as a way to prevent the loss of homes by many financial institutions, as the Making Home Affordable Program has provided opportunities for homeowners in a dire financial position to find affordability in their mortgage payment which will allow them to continue meeting their home loan obligation.

Wells Fargo, overall, has seen increases in the number of permanent modifications they have made throughout 2010, and there are numerous servicers who have watched their permanent modifications increase as well. However, concerns over the number of foreclosures versus federal permanent modifications has arisen over the past months, due to the fact that data shows foreclosures may be catching up to the number of permanent modifications which are being made from month to month.

Obviously, this data will be dependent upon a servicer as to whether their modification efforts versus their foreclosure rate is close or not, but many are concerned that financial institutions are not doing all they can to provide affordability for homeowners. Recently, the Congressional Oversight Panel stated that they feel the Modification Program has seen lackluster results, and according to many homeowners and other officials, servicers may have played a part in the program not seeing as much success as had originally been hoped.

However, servicers like Wells Fargo and other major mortgage institutions often point out that their in-house, proprietary modifications are outnumbering federal modification programs and offering more permanent modifications to homeowners. Over the past months, these alternative modifications are said to have been growing in number as servicers work directly with homeowners to provide an affordable mortgage payment solution for their predicament.

Some argue that guidelines and the federal modification plan as a whole are simply flawed and, as a result, there have been troubles related to federal modifications within HAMP. While the view of the Making Home Affordable Program is mixed, there are various avenues which homeowners with Wells Fargo and other financial institutions may take concerning the affordability in their home loan.

There are still opportunities for homeowners to obtain a Making Home Affordable modification, and federal extension plans which are hoped to address unemployment, second liens on mortgages, and even underwater mortgages are in place as well to provide affordability to homeowners who face defaulting on their home. Yet, proprietary modifications are also available for some homeowners who may not qualify for a federal assistance plan, and it’s hoped that in the early part of 2011, more homeowners will be able to take advantage of one of these assistance options so that more foreclosures can be prevented in the coming months.