Wells Fargo And Wachovia Underwater Home Loan–Are Programs Available For Homeowners With Negative Equity?

Wells Fargo and Wachovia homeowners who are struggling with an underwater mortgage do have opportunities available to deal with their negative equity situation through plans from the Making Home Affordable Program and their servicer. Typically, homeowners who are looking for assistance are either seeking some form of refinancing plan or principal reduction opportunity, yet depending on a homeowner’s position, there are some plans which may also help them alleviate their underwater mortgage debt when a monthly mortgage payment is too problematic.

Major servicers like Wells Fargo/Wachovia Mortgage participate in the Making Home Affordable Program and offer modification plans for homeowners in need of a lower monthly payment. Yet, traditional home loan refinancing has been unavailable to homeowners with negative equity despite the fact that record low mortgage interest rates have been seen by some and, as a result of refinancing, lower mortgage payments and lower affordability on a home loan had been obtained by numerous individuals over the past months.

Yet, Wells Fargo/Wachovia Mortgage homeowners who have a loan that is owned or guaranteed by either Fannie Mae or Freddie Mac may qualify for the Home Affordable Refinance Program which could lead to a more affordable underwater mortgage payment. There have been cases where homeowners who have been facing a situation where they have seen the property value of their home decrease but are still seeing monthly mortgage payments that are beyond their means to meet have considered walking away, but there are options for homeowners which can help them avoid damage to their credit score by simply defaulting.

While homeowners do have options for more affordability through modifications and, when it comes to homeowners who may be having problems related to an adjustable-rate mortgage on an underwater home loan for instance, there are solutions which have been offered by not only Wells Fargo/Wachovia but a variety of servicers to numerous homeowners as well. These initiatives, typically through the Home Affordable Refinance Program, can help homeowners who cannot meet their monthly mortgage payment at the present time or, due to the type of home loan they have, are falling behind.

However, there are some homeowners who just want to be rid of their underwater mortgage situation and those who may not qualify or benefit from these other foreclosure prevention efforts.  As a result, short sales and deed in lieu of foreclosure plans have been offered as a way to allow homeowners to escape a formal foreclosure. While modifications for homeowners are said to be slowing through the federal modification plan, in-house initiatives directly from servicers and extension programs, like the Home Affordable Refinance Program are still addressing issues like underwater mortgages as homeowners continue to struggle and fear foreclosure on their home.

While there is no guarantee that a homeowner can qualify for underwater refinancing, a short sale, or a deed in lieu of foreclosure plan, homeowners have been prompted to talk with their servicer early if underwater difficulties or mortgage payment troubles arise as there are options which may be available for their personal situation, but obviously, letting these financial troubles get out of hand may cut down on the success of these programs or could take some options off the table for homeowners who are in a dire situation.