Homeowners with Wells Fargo/Wachovia have had opportunities to avoid the loss of their home through various modification efforts, but there are still many homeowners who are facing the loss of their home due to their inability to take advantage of these programs. However, homeowners who have attempted to save their home had been able to use foreclosure alternative programs which allow for either a short sale or deed in lieu of foreclosure agreement.
Recent reports from the Making Home Affordable Program have stated some of these plans which have allowed homeowners to avoid a formal foreclosure process by either selling their home at a loss when an underwater mortgage is present or surrendering the deed to their home once they have been unsuccessful at qualifying for a foreclosure prevention plan, have been helpful to some in certain cases.
The most recent report from the Making Home Affordable Program stated that, as of October 2010, there were 10,273 Wells Fargo/Wachovia homeowners who were in the process of a short sale or deed in lieu of foreclosure plan when they had not been accepted into the trial modification program. This number is up from the previous month which reported only 4,760 homeowners in this category, but this data only included a portion of loans which were previously held by Wachovia Mortgage.
Also, homeowners who had their trial modification canceled sometimes qualify for these short sale or deed in lieu of foreclosure agreements and, as of October, there were 4,448 homeowners in the process of one of these foreclosure alternatives agreements, which was a drop from the previous month’s report where it was stated that 6,141 homeowners in this category were in the process of either a short sale or deed in lieu of foreclosure plan with Wells Fargo/Wachovia.
Understandably, not all homeowners may qualify for these assistance plans as there are many servicers who require that homeowners participate in a modification program first so that foreclosure may be prevented. Understandably, homeowners would rather keep their home in the majority of cases, but when a homeowner has been unsuccessful at finding the affordability they need to retain their home, these plans have made it easier for some to escape their mortgage situation without facing a formal foreclosure process and doing a great deal of damage to their credit.
Homeowners have typically requested either a short sale or deed in lieu of foreclosure plan once they have been unsuccessful at a modification, but again, these foreclosure alternatives have not always been offered to homeowners. However, opportunities for homeowners to escape foreclosure should be sought out if the loss of their home is inevitable, according to some advisers, so speaking with a housing counselor or directly with one’s mortgage servicer has been suggested by many advisers as homeowners need to address their home loan difficulties as soon as possible so that the best course of action can be found.