Wells Fargo homeowners who have faced foreclosure after the federal modification program have seen that there are some options that may be able to help them avoid the loss of their home if a federal modification plan has not been offered, but sadly, there are numerous homeowners who are still facing a formal foreclosure as a result of not finding the prevention assistance they need. Obviously, there have been issues related to foreclosures and the practices by financial institutions when considering homeowners for foreclosure prevention, but with continued economic troubles and difficulties in the lives of homeowners, more foreclosures are being seen despite these assistance plans being in place.
Yet, for homeowners with Wells Fargo that were not offered assistance from the Making Home Affordable Program, there were increases in the number of foreclosure completions as of the release of Making Home Affordable reports. For homeowners whose HAMP modification trial was canceled, the December 2010 report from HAMP stated that there had been a total of 9,089 foreclosure completions made, while the January 2011 report stated 9,892 total foreclosures have been seen for homeowners in this category. Yet, for homeowners who were not accepted into a trial modification program, the December report stated there were a total of 11,340 foreclosure completions while January’s report stated 12,053 foreclosure completions had been made for Wells Fargo/Wachovia.
Understandably, homeowners have still had problems when it comes to finding affordable foreclosure prevention plans as many have either been unable to sustain modification mortgage payments or, as is evidenced by these reports, some homeowners did not qualify for federal modification assistance initially. There are also reports that proprietary modifications have not always been helpful to homeowners as, again, problems of redefaulting have been seen despite these outside efforts to prevent foreclosure being offered.
Homeowners who are still facing trouble and may have had a trying time in the modification program do still have options through extension programs or, again, proprietary modification plans, but it needs to be understood these programs are not perfect or may simply not be available for every homeowner. Some homeowners have accused servicers have not properly offering modification plans as there are really no penalties that are faced by these financial institutions if they fail to offer homeowners a federal modification plan but there have been issues on the part of homeowners as well.
There are some homeowners who simply do not qualify for these plans as their debt to income ratio may already be at a level where a modification would bring it and, as a result, a modification would do little to help. However, homeowners can still consult with housing counselors or other resources from the Making Home Affordable Program before they enter into a modification. Many advisors have been able to help homeowners through the modification application process and, as a result, could make this trying time in their lives a little easier by sorting out the requirements for receiving a federal modification assistance plan and making the application process smoother.