For some of the top financial institutions participating in the federal Home Affordable Modification Program, there have been some positive trends according to Treasury Department reports released in May and June, which state that servicers like Wells Fargo have seen decreases in the number of homeowner delinquencies that are being tracked for earlier in the year. Wells Fargo is one of numerous financial institutions not only offering home loan modification plans but according to these releases, have seen the number of delinquent homeowners drop in the early part of 2011.
As was reported earlier, Wells Fargo saw an increase in the number of permanent modifications they have made, but even more positive news may come from the number of delinquent borrowers that are being seen, as reports from May and June, which tracked data from February and March, stated that Wells Fargo dropped from over 153,000 estimated delinquent borrowers to only a little over 137,000 borrowers who were estimated to be delinquent on their mortgage for 60 days or more.
This particular topic has been covered for the major financial institutions are participating in the federal modification program and it has given some men and women hope that the number of homeowners who are falling behind on their mortgage payment may be slowing, and this would obviously be helpful in terms of the future of housing, as there are still foreclosures and empty homes being seen in the housing market. However, some men and women take a more pessimistic view of these findings as the number of delinquent homeowners may be falling according to these reports, but this is again from data that is only made available from reports which were tracking information earlier in the year.
Aspects like job creation and unemployment claims have not had the most positive reports as of late, and for banks like Wells Fargo, it’s sure that there are still homeowners who are going to face potential foreclosure without some form of intervention. While the number of delinquent homeowners may also have seen a decrease due to the fact that certain loans have been written off of servicer portfolios, there are still officials to state that, despite of reported decreases for homeowners with Wells Fargo and others who potentially qualify for a federal modification, we are nowhere near a stable position in terms of homeowners being able to afford their mortgage payment.
However, ongoing modification programs, coupled with unemployment assistance plans made available in various states from the Hardest Hit Fund and the new Emergency Homeowner’s Loan Program are hoped to bring about more solutions where joblessness is one of the main issues behind homeowner delinquency, and as a result, these plans are believed to be beneficial in terms of helping homeowners who qualify stay in their home for a longer period while they continue to look for work.