Wells Fargo Home Loan Modification Plans–Alternative Assistance Options For Unemployed And Underwater Homeowners

Wells Fargo home modification plans available to homeowners have typically been one route that homeowners have taken when they are looking for a more affordable monthly mortgage payment as servicers like Wells Fargo/Wachovia Mortgage typically offer mortgage term extensions, interest rate reductions, or other modifications to a homeowner’s mortgage agreement that will allow them to find more affordability on their monthly mortgage payments when financial distress is an issue. However, some homeowners have been in need of assistance that goes beyond a simple modification plan, and particularly when factors like unemployment or underwater home loans are an issue, there are alternative assistance options for homeowners with this particular servicer.

As part of the Making Home Affordable Program, Wells Fargo and other major financial institutions have been charged with implementing extension plans like the Home Affordable Refinance Program, which may allow some homeowners in a negative equity situation to refinance their mortgage for a more affordable rate, and the Unemployment Program has also been implemented as a way for homeowners to find relief from their mortgage payment when they are without a job. The unemployment plan typically offers homeowners either a mortgage payment reduction or forbearance for at least three months, as homeowners who only can claim unemployment benefits as their income typically do not qualify for a traditional home loan modification.

While homeowners may also be able to take advantage of in-house home loan modifications, which are available directly from many financial institutions, some homeowners have still had issues when it comes to either proprietary modifications or federal modification plans, as there are cases where homeowners are still defaulting on their home loan. Understandably, homeowners who are facing foreclosure are also exploring these alternatives as well, but there may be even more options that go beyond the Making Home Affordable Program that could help homeowners who are behind on their mortgage, struggling with negative equity, or unemployed.

Programs like the Hardest Hit Fund are being used by various state housing agencies as a way to help homeowners finding affordability they need through options like subsidies that will help homeowners who are unemployed pay their home loan, financial assistance to reduce the severity of a homeowners negative equity, or in cases where a homeowner may be behind on their mortgage payment, there are some options from various states that will help these homeowners become current on their mortgage debt.

These programs are, again, only available in certain states and homeowners will even have to meet specific qualifications in these areas where they are available, but Wells Fargo homeowners, as well as individuals with a variety of other servicers, may have opportunities beyond simple modification plans, if that particular form of foreclosure prevention is unhelpful for their situation. Homeowners are still being prompted to contact their mortgage servicer, their state’s housing agency, or they can speak with a reputable housing counselor approved by HUD or the Making Home Affordable Program for further guidance on how to qualify for these programs or for information on what simply may be available for their particular situation.