Wells Fargo alternative modifications recently saw mixed results for homeowners who had either been denied a home loan modification or were unable to acquire a permanent modification within the HAMP initiative, but homeowners are still curious as to whether finding in-house modification assistance is available or helpful as we enter into June and prolonged unemployment along with other financial factors have led to the continued need for foreclosure prevention efforts. There are some homeowners seeing alternative modifications still being made according to reports released in the early part of May, which tracked data from the March Making Home Affordable Program results, and there are also some private reports that homeowners may still be able to find help from in-house modifications, but there are some troubles that have arisen as well.
In terms of the number of Wells Fargo homeowners who were able to acquire some form of alternative modification after HAMP, there was only a slight increase according to reports for those who were not accepted for a trial modification initially and, for data tracking homeowners that received an alternative modification after their trial was canceled, the number did decrease slightly. Yet, on the positive side, the number of homeowners not accepted for a trial who were in the process of receiving some form of alternative modification plan did number at over 55,000, which again is from March’s Making Home Affordable report.
The question remains though, do homeowners find these in-house modifications helpful and affordable, as there have been complaints waged by homeowners in the past as to whether these proprietary modifications, in general, are beneficial. Wells Fargo is one of the many top financial institutions that still offers these assistance plans, and reports from HOPE NOW did indicate that the overall number of proprietary modifications did increase from February to March. Yet, homeowners are well aware that modifications have not been perfect from either federal or proprietary initiatives, so exploring what difficulties may be faced is one reason that homeowners may have avoided either an in-house modification or proprietary modification in their initial foreclosure prevention efforts.
Wells Fargo and other banks that offer these in-house modification plans are in a position to tailor personal modification programs specifically for homeowners as there are no federal guidelines that oversee modifications made directly from a bank, but homeowners have still complained that the modification process can be confusing and frustrating, modification payments on a home loan can still be too expensive, and in some instances homeowners are still struggling with factors like unemployment which must also be addressed if a homeowner is to sustain a modification payment.
While proprietary modifications have by no means helped every homeowner who failed out of HAMP, homeowners must also remember that they need to speak with their servicer about issues like unemployment or negative equity if these aspects of their financial lives are what may be the reason behind their seeking one of these assistance plans. Wells Fargo does participate in the Hardest Hit Fund programming and extension plans within HAMP that can address issues like unemployment, so homeowners do have options outside of federal and private modifications that could be helpful in the coming months if the foreclosure prevention aid is needed.