Mortgage assistance through home loan modifications from Wells Fargo have been beneficial for some homeowners, but there are additional programs from the Making Home Affordable Program which are set in place to aid homeowners who have not been helped fully by traditional modifications. These extension initiatives are hoped to address issues that homeowners have been seeing over the past months, like underwater mortgages, unemployment, and second liens on home loans.
Obviously, unemployment is one of the major strains homeowners are facing when it comes to being able to make their mortgage payment. Previously, homeowners with Wells Fargo and other financial institutions participating in the Making Home Affordable Program were able to qualify for a home loan modification if they were receiving income from unemployment benefits, but due to the short-term income situation this creates, homeowners may no longer claim their benefits as income, which has disqualified some from a traditional home loan modification.
For this reason, the Unemployment Program was set in place to address issues unemployed homeowners may face as this opportunity for homeowners has either brought about a reduction in their mortgage payment, which is similar to a modification, or homeowners have been offered forbearance on their mortgage payments. Obviously, a reduction in a homeowner’s payment or the complete suspension of their payments has been helpful for some, but there are still homeowners who face foreclosure as a result.
In cases where the loss of a homeowner’s property is inevitable, there are alternatives to foreclosure like short sales or deed in lieu of foreclosure plans. Obviously, homeowners wish to avoid the loss of their home at all costs, but in cases where the personal financial situation of the homeowner is so dire that homeownership is not possible, these options allow homeowners to escape a formal foreclosure process by either surrendering the deed to their home or selling their underwater home for a loss.
Also, supplements to primary modifications, like the second lien modification program has been helpful when it comes to bringing more affordability to mortgage payments some homeowners face, there are still obstacles which must be overcome by many homeowners and, despite the availability of these extension programs, servicers like Wells Fargo have still seen homeowners face foreclosure.
Yet, Wells Fargo homeowners, or homeowners with any financial institution for that matter, are strongly advised to either contact their servicer or consult an approved housing counselor if financial troubles arise and missing payments on a mortgage or default may be imminent. While there is no guarantee these foreclosure prevention efforts will succeed, homeowners may stand a better chance at avoiding the loss of their home if they seek assistance in early.