Wells Fargo And Wachovia Mortgage Home Loan Modification Program–Bankruptcy Problems Rise For Some Homeowners

Wells Fargo/Wachovia Mortgage homeowners are among the many who have sought out mortgage assistance through home loan modification programs, but have continued to see bankruptcy increase in some situations. There have been homeowners who have faced either foreclosure or bankruptcy as a result of troubles related to their home loan and personal finances, and it seems that some federal home loan modification assistance opportunities have not been enough to prevent these problems.

While there are numerous financial institutions within the Making Home Affordable Program who have homeowners that have faced bankruptcy, Wells Fargo/Wachovia also saw an increase in the number of homeowners who are in the process of bankruptcy due to having their trial modification canceled. According to HAMP reports, the October report, which tracks data on these homeowners through September, indicated that 722 homeowners with Wells Fargo/Wachovia were in the process of bankruptcy, but that number increased to 737 homeowners in October, as was reported by the November 2010 Making Home Affordable Report.

Also, homeowners who were not accepted for a trial modification also increased according to the most recent reports from the Making Home Affordable Program as November’s data stated that 3,678 homeowners were in the process of bankruptcy after not being accepted into a trial modification. That number was up from the previous month which stood at 1,071 homeowners facing bankruptcy.

Obviously, bankruptcy and foreclosure are some of the more common problems which homeowners are attempting to avoid through home loan modification efforts, despite the fact that not all individuals who attempt to acquire these forms of mortgage assistance are successful. Federal home loan modification assistance from the Making Home Affordable Program through servicers like Wells Fargo/Wachovia did see an increase in the number of permanent modifications which were made throughout 2010. However, there are reports which showed foreclosures began to outpace many conversions into permanent modifications in the latter part of the year, but this has been traced back to extended unemployment.

However, there are still many homeowners who are angry with mortgage servicers over what they deem to be a lack of effort on the part of many financial institutions. While there is still animosity from homeowners directed at various mortgage servicers, there are advisors who suggest that homeowners either contact their mortgage servicer or an approved housing counselor if mortgage troubles arise. While federal modifications and extension programs are still available, in-house home loan assistance through proprietary modifications may also offer homeowners mortgage trouble solutions in cases where homeowners fear they may face foreclosure or bankruptcy without assistance.