Homeowners who are struggling to make their mortgage payments have found that foreclosure and bankruptcy have sometimes been the end result, and sadly, recent data from the Making Home Affordable Program stated that Wells Fargo saw a slight increase in certain areas of the modification program where bankruptcy was currently in progress. Understandably, homeowners are still looking for help that will bring relief from their financial burdens and aid when it comes to paying their mortgage debt, but bankruptcy data has shown that there are still increases for homeowners who are not offered a home loan modification assistance plan within HAMP.
According to the February 2011 Making Home Affordable report, 4,225 homeowners with Wells Fargo who were not accepted for a trial modification faced bankruptcy as a result, which is an increase from the previous month’s report where only 3,996 bankruptcies were seen in total. This data for these particular homeowners not accepted for a modification was tracked through the month of January 2011, and there are still some issues that homeowners feel need to be addressed so that foreclosure and bankruptcy are not the results that a wide number of homeowners face.
Some feel that the modification program needs to be eliminated altogether while others believe that with some restructuring and more accountability, there could be more success seen as the modification program continues in 2011. However, issues like the ability of homeowners to afford their home loan payment has been a problem for some, as there are still homeowners being offered modifications who are failing to continue to make mortgage payments under these restructured terms.
There are those who have laid the blame of this at the foot of servicers, while others feel that the economy is simply one of the main factors behind the reason that homeowners have not seen as much success from the modification plan as had originally been hoped. Understandably, there are still factors that are weighing homeowners down to the point where they cannot meet their monthly mortgage payment on their home loan with ease. However, homeowners do need to understand that there are some cases where they simply will not qualify for mortgage assistance through HAMP as there are certain qualifications that homeowners have not met which has led to them being disqualified from the modification program.
Mortgage modifications from Wells Fargo and other financial institutions can lower a homeowners interest rate and extend their mortgage term, which have both brought about more payments in many cases, but it was also stated in the January 2011 Making Home Affordable Report that 60.4% of homeowners facing mortgage hardships stated that the loss of income was the main reason, while 11.5% stated that excessive obligation is the cause.While there are still homeowners who have been helped by the modification program, issues like affordability and a homeowner’s ability to pay at all are some of the underlying causes that do remain and, no matter how affordable a homeowner’s mortgage payment may be after a modification, there are still some who simply cannot meet their payment.