Delinquent homeowners with Wells Fargo who have been seeking some form of foreclosure prevention assistance have initially turned to the home loan modification program, in many cases, in the hopes that they can find foreclosure prevention assistance that will be right for their particular situation, and even though there have been many complaints on the part of homeowners concerning the modification program, there are some servicers who saw decreases in the number of delinquent homeowners being reported by HAMP.
Delinquent homeowners that are tracked from the Making Home Affordable Program servicer report are usually those who are at least 60 days or more delinquent on their home loan, which may qualify them for a home loan modification program under federal guidelines. While there have been issues with more homeowners falling into delinquency at various points along home loan modification road, Wells Fargo saw a decrease in the number of delinquent homeowners from December 2010 to January 2011. In the December 2010 Making Home Affordable report it was stated that Wells Fargo had 161,191 homeowners who were 60 days or more delinquent on their home loan, but that number dropped in January 2011 to 157,785, which may be a positive sign.
Obviously, troubled homeowners who have been able to either acquire a trial or permanent modification are not out of the woods when it comes to the possibility of delinquency as there have been some homeowners who have even redefaulted on their home loan after a trial or permanent modification was offered. Wells Fargo is one of the major servicers who has seen issues in this area, but there are also homeowners with numerous servicers who complain about not having a sustainable and affordable modification payment offered from these foreclosure prevention efforts.
Yet, Wells Fargo homeowners may be able to not only take advantage of federal modification plans but also alternative modification assistance through proprietary programs and state-specific plans that are available in areas where funding from the Hardest Hit Program may be available. These alternative plans may be able to not only address affordability issues but unemployment and negative equity as well, since many homeowners are still facing problems when it comes to paying their mortgage due to these factors and, as a result, they need to be more closely addressed.
While homeowners with Wells Fargo or any other bank that may be facing financial hardships do still have these programs available that could potentially lead to foreclosure prevention, there are resources like housing counselors from the Making Home Affordable Program that may need to be consulted before homeowners even begins missing mortgage payments. Addressing financial issues when they arise and before homeowners begin missing payments may offer more time and options for individuals to find affordability on their home loan payment and avoid foreclosure or even the necessity for a modification altogether. While these housing counselors are no guarantee, a homeowner may also contact their servicer directly to inquire about options that could help them avoid financial distress when economic setbacks are present in their life and creating a situation where they run the risk of either missing mortgage payments or defaulting entirely.