Wells Fargo Home Loans–Foreclosure Prevention And Home Loan Debt Relief Plans For Distressed Homeowners

Wells Fargo home loans have been an issue for many who work with this particular servicer and have been seeking foreclosure prevention and home loan debt relief plans in cases where homeowners have become distressed when it comes to meeting their monthly mortgage payment. Servicers like Wells Fargo have been offering home loan assistance through federal modifications, but there have been homeowners who have complained that these assistance programs have been unhelpful to many, and have led to the need for more alternative options which can help those who face foreclosure.

It’s for this reason that many servicers, Wells Fargo included, have begun offering extension plans and still offer various other home loan affordability options to those who have fallen upon a difficult financial time in their personal life and may be unable to meet a traditional home loan payment presently. For homeowners with Wells Fargo, opportunities to receive a foreclosure prevention assistance plan from the Unemployment Program, the Second Modification Program, and even foreclosure alternative initiatives have allowed many individuals to escape a formal foreclosure and, in some cases, find more affordability in their home loan payment.

Homeowners who qualify for these extension programs may be able to either enter into a forbearance plan, under the Unemployment Program, which can be beneficial for those who are still seeking a job but are relying on unemployment benefits as their only source of income. Obviously, unemployment is one of the major issues that homeowners are still facing, but it’s hope that when servicers implement this Unemployment Program, which requires that homeowners be entered into either a payment reduction plan or a forbearance for at least three months, they will be able to avoid the loss of their home as they continue to look for a stable form of income.

Yet, homeowners with Wells Fargo and other financial institutions have been troubled by these efforts from servicers and the home loan modification program in general, which has led to many homeowners being denied the assistance they sought out. There have been cases where homeowners feel they were unjustly denied a home loan modification assistance plan or had their modification canceled prematurely. While there have been issues on the part of both servicers and homeowners, financial institutions like Wells Fargo do also offer in-house home loan modification assistance plans which may be helpful for those who are denied a modification plan from the Making Home Affordable Program.

While it’s sure that servicers like Wells Fargo, among others, will still be addressing these issues in the new year, homeowners may also still take advantage of refinancing opportunities in some cases. Understandably, Wells Fargo is not the only financial institution with which a homeowner can refinance, but homeowners who are considering refinancing their home loan must take stock of their financial position to make sure that they can not only afford the costs that come with refinancing but will also benefit as well. Refinancing has brought more affordability to homeowners through either lower mortgage terms, which led to more affordable monthly mortgage payments, or shorter mortgage terms, which allow homeowners to escape their mortgage debt in a timely manner at a lower cost, but refinancing a home loan is not always in a homeowner’s best interest or is necessarily affordable.

However, financial advisers do prompt homeowners to either contact their mortgage servicer or an approved, reputable housing counselor early if financial troubles arise so that their options may be discussed before their financial situation becomes too problematic. While servicers can help homeowners with a home loan modification or refinancing, some housing counselors may be able to either look over a homeowner’s household budget and formulate solutions to their mortgage payment difficulties or can guide homeowners through the home loan modification process if it is deemed that assistance is necessary.

Not all homeowners may benefit from these forms of assistance, but as there are predictions that foreclosures may continue to rise in 2011, more financial counselors and advisers are attempting to make homeowners aware that there are options available for foreclosure prevention from a variety of mortgage servicers and, within these foreclosure prevention plans, there are specific areas of aid which may be beneficial for almost any mortgage situation.