Wells Fargo and Wachovia Mortgage’s foreclosure prevention efforts through the home loan modification program have seen some successful results throughout 2010, but as the year came to a close many began to see that servicers were not making modifications in as great of a number as they were foreclosures on homes. Concerns over foreclosures and the ability of home loan modifications to prevent the loss of a home in cases where homeowners are struggling financially has been in question as there are many critics of the modification program and servicers who implement these assistance plans.
Yet, data from the Making Home Affordable Program has shown that foreclosures still remain a problem for many homeowners as there have been increases in foreclosure starts and completions by many mortgage servicers throughout the year. As an example, Wells Fargo/Wachovia had data reported from the HAMP report concerning foreclosures and for homeowners who were not initially accepted into a trial modification, according to the November report, there were 19,163 foreclosure starts and 10,394 foreclosure completions. In the previous month’s report, homeowners not accepted for a trial modification numbered at 10,638 for those facing foreclosure starts and 5,392 for those who had seen a foreclosure completion. Yet, the increase in these numbers could be due in part to the fact that the previous month’s report only included a portion of loans previously held by Wachovia, while the November report included all loans under Wachovia Mortgage.
However, there were also issues for homeowners who had their trial modification canceled and ended up facing foreclosure as a result. Again, the November HAMP report stated that there were 19,333 foreclosure starts for homeowners in this category while 8,090 had faced a foreclosure completion. These numbers, again, were up from the previous month where there were only 18,384 foreclosure starts and 6,647 foreclosure completions.
Obviously, there are some homeowners who are still at odds with their servicer as many have questioned the foreclosure practices of certain financial institutions as they feel that these banks are not doing all they can to offer foreclosure prevention through home loan modifications. However, homeowners with Wells Fargo/Wachovia Mortgage may be able to not only obtain foreclosure prevention through home loan modifications from the federal assistance program, but there are also in-house alternative modifications and federal extension programs that can address issues like unemployment which are still available to aid homeowners in need. While these programs are not guaranteed to offer successful foreclosure prevention, advisers are still prompting homeowners to either contact their servicer or seek out advice from a HUD-approved housing counseling for options to save their home.