Wells Fargo and Wachovia Mortgage homeowners may have assistance opportunities when they are suffering from an underwater mortgage as homeowners who are facing negative equity are becoming more common and problematic across the nation. Obviously, there have been many homeowners who have asked for a principal reduction on their underwater mortgage, but there have been some mortgage servicers who have been hesitant to offer this form of underwater homeowners assistance where negative equity has become problematic.
Understandably, homeowners who are having trouble making their home loan payment when negative equity is present usually seek any home loan aid they can find so that they can avoid the loss of their home. In these cases, many financial institutions have stated that principal reductions are simply unhelpful and have opted to either expand mortgage terms or lower interest rates so that homeowners who are struggling with negative equity can avoid the loss of their home.
However, Wells Fargo/Wachovia Mortgage do participate in the Making Home Affordable Program and, for homeowners who received a permanent home loan modification, a principal reduction may be offered. According to the program’s guidelines, homeowners who receive a permanent modification may qualify for up to $5,000 in principal reduction assistance over a five-year period and those who qualify for a Second Lien Modification may receive an additional $1,250 off of their mortgage principal over the same five-year timeframe.
Yet, when it comes to principle reductions which many underwater homeowners are seeking, these options have been limited at best. While homeowners with Wells Fargo/Wachovia and other mortgage servicers have contacted their financial institution to inquire about opportunities for principal forgiveness, as there are some banks which offer principal forgiveness programs if homeowners continue to make timely payments, principal reductions have been a highly debated issue among both homeowners and banks.
Again, there are financial institutions that do offer current principal forgiveness, but homeowners who are not facing a negative equity situation feel that forgiving a homeowner’s principle is simply unfair and, there are banks who take this stance as well, stating that principal reductions do little to offer affordability in terms of foreclosure prevention efforts.
While homeowners who view their home as an investment feel that a principal reduction can be helpful since, obviously, these homeowners may want to sell their home for a profit years down the road, but homeowners who are having difficulty making payments on their underwater mortgage do have opportunities for affordability through modification efforts and proprietary assistance plans.
Homeowners who do have a home loan that is guaranteed or owned by Fannie Mae or Freddie Mac may have refinancing options through the Making Home Affordable Program, but principal forgiveness may be unavailable to many homeowners with a negative equity problem. However, homeowners are still being prompted to either consult a certified housing counselor or talk directly with their mortgage servicer about principal forgiveness options or, if homeowners are struggling to make the mortgage payment, there are foreclosure prevention opportunities which may help make an underwater mortgage payment more affordable.