Delinquent homeowners with Wells Fargo in need of home loan assistance have had options for alternative modifications after failing to find the mortgage payment reduction they needed after the Making Home Affordable Program. Numerous financial institutions have been offering these alternative plans to homeowners who were simply unable to qualify for a permanent or trial modification, but there are still questions as to whether these alternative assistance plans are helpful and what servicers may be offering them to homeowners.
Modifications have reportedly begun to slow over the past months and this has led many officials to question whether the current offerings of foreclosure prevention are actually helping homeowners. While the number of alternative modifications made directly from servicers are reportedly on the rise, in comparison to the federal modification program, there have been mixed results for homeowners who are unable to successfully complete the federal modification program and therefore sought out an alternative modification plan.
For Wells Fargo, the December 2010 report from the Making Home Affordable Program stated that there were a total of 55,141 alternative modifications on record for homeowners who had not been accepted for a trial modification, but the January 2011 report stated that 54,682 alternative modifications have been made for homeowners in this group, from Wells Fargo/Wachovia Mortgage. Also, the number of homeowners in the December report who had their trial modification canceled stood a total of 61,854, who received an alternative modification, but the January 2011 report showed that number to be at 60,344.
Reports have stated there are some servicers who have been transferring these mortgages to servicers that are not recorded in the top eight institutions being tracked in the disposition path report from HAMP, and homeowners are also being made aware that those who simply do not qualify for a Making Home Affordable Program modification are not the only ones who are receiving alternative plans.
However, there are some officials and homeowners who feel that even homeowners who may have sought out a modification from a proprietary plan, available directly from their servicer, have not had an easy process and both homeowners from the federal initiative and proprietary modifications have still defaulted despite having more affordable mortgages offered. Many financial institutions are still working in both the federal and private modification areas of foreclosure prevention assistance programming, but again, mixed results have still been seen in some cases, despite increases in permanent modifications.
Many homeowners argue that servicers must either offer more affordable programs to help them prevent foreclosure, the federal initiative must be restructured to not only allow a more streamlined application and qualification process, but hold servicers more accountable, and again, there are homeowners who believe that even in-house modification plans must be made more affordable if homeowners are to be helped in greater number. Yet, these modification plans from servicers like Wells Fargo are still in place despite criticism and opposition, and even current legislation which is hoped to end HAMP is likely to be vetoed if passed. While modifications and servicers have not been perfect, many homeowners are being prompted to contact their mortgage servicer early if they are having trouble in their financial life, so as to get the best possible chance at receiving an affordable foreclosure prevention option.