Homeowners with Wells Fargo/Wachovia Mortgage who have been unable to acquire a federal home loan modification may have options through alternative home loan modification assistance to help lower their overall monthly mortgage payments. Servicers who have participated in the Making Home Affordable Program have also offered proprietary modifications to individuals who were struggling and did not meet qualifications set forth by HAMP but may have been in a position where these foreclosure prevention efforts could have prevented the loss of their home.
Obviously, there are some homeowners who have been unaided by modification efforts and, as a result, have faced foreclosure despite the fact that they had a lower mortgage payment in place. It’s hoped that these alternative modifications will provide more opportunities for homeowners in a preventable foreclosure situation the option of finding more cost efficiency in their home loan. Yet, when it comes to home modifications and alternative mortgage assistance plans from Wells Fargo/Wachovia Mortgage, there were mixed results according to data released by the Making Home Affordable Program.
The most recent Making Home Affordable report indicated that Wells Fargo saw increases and dips in the number of alternative modifications for homeowners who either were not accepted for a trial modification or who had their trial modification canceled. The November 2010 Making Home Affordable report indicated that Wells Fargo had a total of 53,472 alternative modifications on record for homeowners who were not accepted for a trial modification. In December, Wells Fargo’s data stated that, for homeowners not accepted into a HAMP trial plan, there were a total of 55,141 alternative modifications at the time of the report. Obviously, this is an increase in the number of homeowners who found assistance outside of a federal modification program, and overall it’s said that these in-house modification plans are seeing more success than federal foreclosure prevention efforts.
While the number of homeowners who had their trial modification canceled with Wells Fargo did dip between November and December, there are some servicers who are removing loans from their servicer portfolio and this could be one reason behind the drop in alternative modification data for certain servicers. However, overall industry data has suggested that these proprietary modifications offered directly from mortgage servicers have been seeing greater numbers, compared to both federal modifications and foreclosures, so it’s hoped that homeowners will find more affordability through either federal or proprietary programs in 2011.
Yet, homeowners in need of a modification have been advised to contact their servicer early or speak with a repeatable housing counselor to address monetary issues that could be causing difficulties to arise and the potential for foreclosure due to missed mortgage payments.