Wells Fargo foreclosure information made available in June, concerning homeowners who were not accepted for a federal trial modification or who had their trial modification canceled within the Home Affordable Modification Program saw little movement from earlier months this year as the Treasury Department’s data from February and March indicated that there were various changes among all mortgage servicers who were tracked, but some banks saw less activity than others. While Wells Fargo is one of the top banks participating in various aspects of the current foreclosure prevention efforts that are ongoing, there are still homeowners who are facing the potential loss of their home that are outside of those being tracked in these particular reports.
However, homeowners may view it to be good news that, for Wells Fargo, homeowners who were either seeing foreclosure starts or had a foreclosure completed remained relatively stagnant, or even decreased slightly in some cases for February and March of 2011. Homeowners whose trial modification was canceled saw foreclosure starts drop from 17,993 to 17,768, but this category of homeowners did see foreclosure completions increased from 13,629 to 13,941. While homeowners who had their trial modification canceled also saw decreases in both starts and completions, there are arguments and that this data does not necessarily point to good news for Wells Fargo homeowners or any homeowner whose servicer may have seen decreases in general.
This data comes from a period during the first of the year where backlash from questionable foreclosure practices have halted many foreclosures in a variety of states and led to questions among certain servicers as to if paperwork was processed properly. Some believe that these foreclosure numbers reflect this slowdown in foreclosures being processed and not necessarily are an indication that homeowners are in a position where they can afford to avoid loss of their home by meeting mortgage payments or seeing successful completions of these foreclosure prevention plans.
Some banks have also simply written foreclosures off of their books, which may be the reason for the decreases in some foreclosure completion data from various banks, but questions over whether homeowners can still benefit from foreclosure prevention assistance also remains. Luckily for homeowners, Wells Fargo and other of mortgage servicers are participating in not only federal modification initiatives but there are a wide range of programs that are still active or on their way which can help homeowners avoid foreclosure through various types of assistance or payment reductions.
Homeowners have been looking at the newly implemented Emergency Homeowners’ Loan Program as one more opportunity for those who are unemployed to avoid foreclosure, as modifications from servicers, HAMP, and state initiatives have been in place for varying periods of time but have not been able to meet the needs of all homeowners who are without employment or simply facing financial hardships. It is hope though, that with all of these options still being offered, more homeowners will begin to see the foreclosure numbers drop because a larger number of men and women are simply able to afford their home loan payment.