Homeowners with Wells Fargo and Wachovia Mortgage who have taken part in various programs within the Making Home Affordable initiative have had options to either sell their home, when financial distress was present and evident, or in some cases, a deed in lieu of foreclosure option was offered to homeowners who were facing the loss of their home due to factors like unemployment or having an underwater home. Yet, data from the latest Making Home Affordable Report, which tracks numbers through 2010, as stated that there were mixed results in the most recent short sale and foreclosure initiatives from Wells Fargo/Wachovia Mortgage.
In January, the December 2010 Making Home Affordable Program report was released and stated that Wells Fargo/Wachovia Mortgage had made a 4,294 short sales or deed in lieu of foreclosure plans, through November 2010 for homeowners who had their trial home loan modification canceled and 10,550 short sale or deed in lieu of foreclosure plans for homeowners who were not accepted for a trial modification.
Yet, in the previous month’s report stated homeowners with Wells Fargo/Wachovia Mortgage had a total of 4,448 short sale or deed in lieu of foreclosure plans in place, for homeowners who had their trial modification canceled, while individuals who were not accepted for a trial modification numbered at 10,273 short sale or deed in lieu of foreclosure cases. Obviously, there were ups and downs as homeowners who were not accepted into a trial modification saw an increase in these foreclosure alternative efforts while the number of short sales and deed in lieu of foreclosure plans as of the report for those who had their modification canceled dropped.
While homeowners are still struggling with various financial difficulties, which obviously create a great deal of problems related to their mortgage, there are more individuals who feel that short sales or deed in lieu of foreclosures will be offered in 2011 because costs related to processing foreclosures may be more expensive for servicers and as continued economic struggles wreak havoc on the housing market and in the lives of homeowners, servicers may wish to avoid waves of foreclosures by offering these alternatives.
However, homeowners need to understand that there are options that must be explored before these short sale and deed in lieu of foreclosure plans may be offered, as modifications and other foreclosure prevention efforts are hoped to be successful for homeowners before they must surrender their home or sell at a loss. While homeowners may consult their servicer about options to prevent the loss of their home, there are also housing counselors which may be consulted through the Making Home Affordable Program or HUD that could aid homeowners with either modification pursuits or finding affordability with their mortgage payments.