Wells Fargo is one of the financial institutions that can offer foreclosure alternatives to homeowners who may have been unsuccessful at acquiring a foreclosure prevention plan or who may simply be suffering from economic setback, an underwater home loan, or other difficulties that can lead these individuals to seek out either a mortgage short sale or a deed in lieu of foreclosure option. Many of the homeowners who have attempted to acquire either a short sale or deed in lieu of foreclosure program are typically those who are in a situation where defaulting or foreclosure may be imminent, and these alternatives can help homeowners who are attempting to transition from their home without doing a great deal of damage to their credit score.
Reports have recently been released from the Making Home Affordable Program and show various paths for homeowners who may have been unable to acquire a permanent Making Home Affordable plan. Numerous financial institutions are reportedly working with struggling homeowners through the Home Affordable Foreclosure Alternatives plan, and there have been some who were able to take advantage of these programs which allow homeowners to surrender the deed to their home or sell their home at a loss, but be free and clear of mortgage commitments afterward.
According to the HAMP report, Wells Fargo/Wachovia Mortgage had a total number of 4,294 short sale and deed in lieu of foreclosure plans as of the December 2010 Making Home Affordable servicer report for homeowners who had their trial modification canceled. The most recent report stated that there was a total of 4,878 short sale and deed in lieu of foreclosure programs, according to the January 2011 report. Also, homeowners who were not accepted for a trial modification in December’s report number at 10,550, while January 2011 report showed there were a total of 11,781 short sale or deed in lieu of foreclosure plans that had been offered.
Obviously, Wells Fargo is not the only servicer to offer these short sale and deed in lieu of foreclosure programs, as numerous financial institutions are being prompted to help homeowners in this area when financial distress has proven to create a situation where a particular homeowner is unable to acquire foreclosure prevention help, like modifications, but were previously able to meet their mortgage payment. Homeowners who are in a financially troubling situation as a result of job loss or negative equity are usually given more consideration or may have more options available than homeowners who have simply acquired too much debt in their home and are unable to afford the costs of doing so.
However, these foreclosure alternative plans are still available to homeowners in need and there are many governmental officials pushing for further foreclosure alternative efforts, which could be helpful in the coming months. While short sales and deed in lieu of foreclosure programs are not guaranteed, many of these officials have been asking banks to begin working with homeowners to find buyers for short sales or be more proactive about making homeowners aware of these programs.