Wells Fargo homeowners who are attempting to acquire a home loan trial modification may have seen that, according to reports that were released in the early part of May and tracked data through the month of March, Wells Fargo saw an increase in the overall number of total trial modifications they had started since the federal home loan modification program’s inception. Yet, what homeowners are questioning is whether these trial modifications are leading to more sustainable trial payments and ultimately a permanent home loan modification situation for homeowners who are facing financial distress.
The same report that was released by the Treasury Department, which has been reported on in various aspects, also stated that the number of active trial modifications remained relatively unchanged, but permanent modifications did increase for Wells Fargo according to the most recent data. Yet, homeowners with a variety of servicers are still having problems even here in the month of June, despite the fact that the federal modification program has been in place for quite some time and, potentially, has had the opportunities to repair any problems that homeowners may have faced in the early stages.
While Wells Fargo homeowners, and homeowners with any other servicers in the modification program, may be able to contest their servicer’s decision to deny them a trial or permanent modification, there are also programs being enacted that will hopefully cut down on problems, like those that require a single representative to work with homeowners in cases where this has not already been established in the modification process of particular banks. Yet, there are those who still have negative views of the modification program overall, and wonder whether foreclosure prevention assistance through this route may have simply run its course.
The federal home loan modification initiative is not set to end until next year, and even though Wells Fargo and other banks are continuing to see increases in the number of permanent modifications and proprietary home loan modifications as well, there are still issues with affordability that homeowners face even if a lower home loan payment is offered through one of these plans. Simply put, the federal modification program has not been perfect, but with modifications increasing, extension programs made available to address specific issues, and even state programs like the Hardest Hit Fund helping homeowners who are facing foreclosure, unemployment continues to be the anchor that pulls down many homeowners in terms of their ability to make their mortgage payment.
However, even though unemployment is one of the main reasons homeowners seek a modification, there are still arguments that banks could do more to prevent foreclosure, even if some may find evicting a homeowner to be more advantageous in certain cases. Homeowners have simply been asking for the option to receive a lower monthly payment on their mortgage for a set period of time until they can get back on their feet, but again, this is not always available to everyone and, as a result, homeowners must make sure they explore foreclosure prevention options early so that they can exhaust all possible avenues to mortgage affordability.