Wells Fargo homeowners seeking foreclosure prevention assistance through a home loan trial modification have found that the modification program in general and some experiences that other homeowners have had with a variety of financial institutions equate to a difficult process in some cases. However, there are still trial modifications being offered in order to help homeowners avoid foreclosure, but these are not the only paths that homeowners may take when it comes to preventing the loss of their home.
The total number of trial modifications started by Wells Fargo/Wachovia Mortgage within the federal Making Home Affordable Program stands at 219,424, with the number of trial plans initially offered a standing at 302,951. This data, from the February 2011 Making Home Affordable Report has led to some homeowners questioning whether the modification program needs to be altered or if servicers are simply to blame, as there are a far fewer number of active trial and permanent modifications with not only Wells Fargo, but the majority of these financial institutions as well. As an example, Wells Fargo currently has a little over 15,000 active trial modifications still in place, but there are questions as to whether more homeowners may have been able to find the affordability they needed to avoid foreclosure or at least qualify for a permanent modification plan.
Yet, issues that have come from trial modifications usually surround the inability of a homeowner to meet their payment even when this modified mortgage option is offered. The problem of defaulting once again within a trial modification has not only been a problem for homeowners within HAMP but this is an issue that some homeowners have reported from proprietary home loan modification plans as well.
This is led many to question whether servicers or the modification program are largely to blame or if some individuals are simply in such a poor financial position, due to either negative equity, unemployment, or a combination of other factors, that they cannot afford their home no matter what actions are taken. There are, though, homeowners who feel this is not the case but servicers have been the reason behind what many believe to be lackluster numbers in the modification program overall.
However, the debate over whether modifications and servicers are actually helping homeowners continues, as there are changes being made within the program and some individuals calling for the termination of HAMP, but homeowners do still have options to avoid the loss of their home through both proprietary and federal modifications, as well as, state-specific programs that may be helpful for homeowners in certain areas. Also, homeowners can consult with a HUD-approved housing counselor and resources on the Making Home Affordable website if they feel they have been unjustly denied a modification or simply need an alternative form of foreclosure prevention assistance due to financial strains being experienced in their personal life.