Home loan assistance plans from Wells Fargo have addressed issues that can help homeowners avoid either bankruptcy or foreclosure when financial distress has made it difficult for these individuals to meet their monthly mortgage payment, but when it comes to programs like the home loan modification plan, homeowners have had mixed results in some cases as there are still homeowners facing foreclosure or filing bankruptcy with various servicers after attempting to modify their mortgage.
Obviously, Wells Fargo has been one of the top financial institutions participating in the Making Home Affordable Program, but all servicers have seen problems related to not only foreclosures but bankruptcy as a result of homeowners not finding the assistance they need. As an example, Wells Fargo’s data for December 2010 Making Home Affordable Report showed that there was an increase in the number of bankruptcies in progress when homeowners were either denied a trial modification or had their trial canceled.
The November HAMP report stated that for homeowners whose trial modification was canceled, 737 homes were in the process of bankruptcy, and that number in December rose to 803 total homes that were facing bankruptcy as a result of their trial modification cancellation. Also, homeowners with Wells Fargo who were not accepted for a trial modification in November’s report were at a total of 3,678 who were in the process of bankruptcy, and that number increased in December’s report to 3,939.
Questions as to whether the home loan modification program is ultimately helpful have been raised over the past months as there are homeowners who have waged a great deal of complaints against not only modification program, but mortgage servicers who implement these plans as well. While Wells Fargo has not escaped their share of criticism they did see an increase in the number of permanent federal modifications that were active from the November to December 2010 report.
While there are still homeowners who are facing foreclosure, and other financial difficulties like bankruptcy, as a result of not obtaining a home loan modification, there are still difficulties related to homeowners being unable to meet their mortgage payment even when a modification plan is in place. This has called some to question whether homeowners are simply in the financial position to continue owning their home, as proper modification efforts have still ended in homeowners missing payments and ultimately facing foreclosure, which would either necessitate that the modification program needs to offer more affordability in these cases or these homeowners are simply unable to continue on in their homeownership.
Yet, federal modifications, in-house home loan modification plans, and state-specific foreclosure prevention efforts are still being used across the nation to help individuals in need and homeowners are still being prompted to contact their servicer or a HUD-approved housing counselor to seek out solutions that may help them either avoid foreclosure or bankruptcy by finding more affordability in their mortgage payment.