Homeowners with Wells Fargo and Wachovia Mortgage who have fallen into the area of home loan delinquency have reportedly dropped, according to data from the most recent Making Home Affordable report, but this is an indication that only homeowners who are delinquent on their mortgage for 60 days or more and may potentially qualify for a federal modification program are those who have seen this reduction in homeowner delinquency. However, there are also indications that the number of trial plans extended to homeowners in this situation have also increased from Wells Fargo and Wachovia Mortgage, as well as, the modification program overall.
Homeowners who were estimated to be eligible for a modification due to the fact that they were over 60 days delinquent on their home loan numbered at 166,441, according to the December 2010 HAMP report, but the report in January 2011 stated that there were only 161,191 delinquent homeowners with Wells Fargo. Also, the number of trial plan offers extended homeowners increased from 291,772 to 297,545, which is a positive for homeowners who are seeking a trial plan in the hopes of earning a permanent modification on their mortgage.
Yet, there are still issues that some homeowners have with not only these financial institutions charged with implementing federal modification programs, but there are issues with the overall modification program as well. While servicers have stated that some homeowners do not properly file documentation and show they are in a situation of financial distress, but there are some who are denied because they already have a debt to income ratio at or below the level where a modification would bring their finances. For these reasons, among others, some homeowners feel that modification program is still quite flawed.
Arguments from homeowners usually surround problems related to either customer service on the part of their financial institution, lost paperwork, and there are some homeowners who are still unable to make their mortgage payment each month despite having a modified home loan agreement. Officials have gone so far as to say that the modification program needs to be terminated, while others have simply suggested that changes need to be made so the application process will be more efficient, servicers may be held accountable if they do not adhere to program guidelines, and homeowners may find they can receive a permanent modification on a wider scale.
However, for servicers like Wells Fargo, there are alternatives for their homeowners in the form of proprietary modifications which may be helpful if a federal home loan assistance plan does not work. Yet, there are still issues from homeowners in this area as well since, in some cases, similar issues have arisen concerning the ability to qualify for and afford an in-house modification plan. Despite difficulties related to modifications, homeowners are still being urged to contact their servicer or consult counselors from the Making Home Affordable Program so that either initial issues may be addressed early or a homeowner may get assistance in the modification program, which could help them find the foreclosure prevention assistance they need in an affordable and timely manner.