Wells Fargo’s home loan modification efforts did see an increase in certain areas from the December 2010 HAMP report to the January 2011 data, but there are still some concerns by homeowners who are seeking a trial modification in order to lower their monthly payment obligation and, hopefully, acquire a permanent home loan assistance plan. There have been ups and downs for homeowners who have attempted to participate in the federal modification program, as many have seen their trial modification canceled or have initially been denied a trial modification altogether.
There are servicers who have seen decreases in the number of trial modifications over the past months, which has led to many officials stating that the modification program has essentially lost its steam and should be canceled, but there are still permanent modifications being made which have helped homeowners lower their home loan payment each month. Yet, arguments have surrounded the issue that homeowners have found themselves in a worse financial position in many cases when attempting to modify their mortgage as many eat through their savings and damage their credit score after missed payments or simply trying to stay afloat when financial problems have arisen.
Sadly, the number of active trial modifications for Wells Fargo did to decrease from December to January, but the total number of trial and permanent modifications started did see an increase. While the active trial modifications in December 2010 stood at 18,526 for Wells Fargo, that number decreased in January 2011 to 15,675.
Yet, the total number of permanent modifications started by Wells Fargo in December stood at 76,408, which increased to 81,724 in January. Also, 213,241 total trial modifications has been offered by Wells Fargo, in December, while the January total increased to 215,718 total trial modification starts.
This data from the Making Home Affordable report has shown, again, that some areas of the modification program have continued to see success while others could use improvement, but there are still calls by many officials to completely terminate the program and other foreclosure prevention assistance plans that they feel have either been unhelpful or more of a hindrance to homeowners. Obviously, there are many angry homeowners who have attempted to qualify for a permanent home loan modification who also would argue that the federal modification program is flawed, there are homeowners who have stated the modification program has been beneficial for their situation and some officials also believe current foreclosure prevention efforts must remain in place.
While there are mixed opinions on not only modification programs, but in-house homeowner assistance plans available directly from servicers like Wells Fargo, homeowners are still able to contact their servicer or consult a reputable housing counselor approved by HUD or the Making Home Affordable Program if they are having trouble making their mortgage payment. Obviously, addressing payment issues early can be more beneficial for homeowners, especially those who may consult a housing counselor, but despite arguments over this modification programs, they are still available and could still be of benefit to some homeowners even if there have been problems in the past. Yet, homeowners need to understand that servicers have not been perfect and modification efforts could use improvements, but this is one route that is still available to homeowners who fear the loss of their home to foreclosure.