Wells Fargo and Wachovia Mortgage homeowners have been aware of home loan modification efforts by the servicers through the Making Home Affordable Program and proprietary modification plans, but there are also additional home loan assistance plans that may be beneficial to homeowners that go beyond traditional modifications. While questions over the effectiveness of the modification program have recently arisen, homeowners are still seeking some form of foreclosure prevention assistance and the federal modification initiative is, obviously, the most well-known method for homeowners to find affordability.
Yet, outside of traditional home loan modifications, Wells Fargo and Wachovia Mortgage are just two of many servicers who participate in additional Making Home Affordable programs as there are also second lien modification plans, the FHA first lien program, the FHA second lien assistance plan, and the Rural Housing Service Modification Program. These plans, which are an extension of the Making Home Affordable Program, may offer more opportunities for homeowners to find affordability depending on their situation and the type of home loan they have.
While there are, again, questions over how well the modification program has been helping homeowners and over whether servicers have been using this program to maximize benefits homeowners may receive, there are also in-house modification efforts being launched by many servicers, like Wells Fargo/Wachovia, which may also be beneficial to homeowners if a federal assistance plan is unavailable for their situation.
There are homeowners who simply do not qualify for federal home loan assistance, but there are also some concerns over the implementation of these programs by servicers as the home loan modification program is voluntary and, according to some, servicers have not been adhering to guidelines in all modification cases. Recent questions over the agreement between the Treasury Department and servicers have had some officials calling for the program’s termination, but opposing opinions point out that servicers like Wells Fargo and other financial institutions participating in HAMP could still help homeowners who are struggling.
Obviously, the issue of home loan modifications is something that has been highly debated over the past months and, in some cases, even from the program’s inception. However, these opportunities from extension plans, along with short sales and deed in lieu of foreclosure plans, the unemployment program, and traditional home loan modifications, are still an option for homeowners in need and, despite shortcomings, may still offer homeowners the foreclosure prevention assistance they need but before the program can be fully effective to a wider number of homeowners, there are those who feel that change is necessary.