Wells Fargo foreclosure alternative efforts that were reported on here in June tracked information that was made available through the month of March, and has shown that there was little activity in the earlier part of this year, in terms of short sale and deed in lieu of foreclosure options. There were reports earlier this month that more banks are pressing short sales or at least helping homeowners explore this as an option when foreclosure prevention options have been unsuccessful, but there are still some decreases being seen among servicers who have had homeowners either face the cancellation of a trial home loan modification plan or were not accepted for a trial modification initially.
For Wells Fargo particularly, homeowners who were not accepted for a trial modification in February numbered at 11,613, while the same category for the month of March stated that 12,038 total short sale or deed in lieu of foreclosure plans had been made, according to the Treasury Department report. Yet, Wells Fargo homeowners who face the cancellation of their trial modification numbered at 4485 in February but only 4353 and March. Decreases in numbers from these Treasury Department reports may be the result of these servicers writing off old loans, but there are still questions as to whether homeowners are either receiving short sale or deed in lieu of foreclosure agreements or if these plans are being avoided by homeowners in the hopes of receiving alternative assistance in the realm of foreclosure prevention.
It’s understandable that homeowners, for the most part, would rather stay in their home and, for this reason, multiple foreclosure prevention plans have been in place. Recently, a loan program was offered in states that may not have qualified for the Hardest Hit Fund, and it’s hoped that along with these state-specific initiatives, programs like the federal home modification plan, if unhelpful, will not be the only route that a homeowner can take to avoid the loss of their home.
Some homeowners do find that selling their home at a loss is unhelpful, as it could still lead to the negative results in the financial life of a homeowner, in terms of their credit score, as a foreclosure would, so some are focusing their efforts on keeping their home at the present time. Also, the severity of a homeowner’s negative equity may differ and, as a result, there have been homeowners who have been able to refinance their mortgage for a more affordable monthly payment by applying cash towards their mortgage when they refinance their home loan.
While this option is not for everyone, homeowners who are facing delinquency on their Wells Fargo home loan may want to either contact their servicer, a housing counselor, or simply assess their situation to see what options may be available, like these state-specific plans, that may help them avoid the loss of their home through loss mitigation efforts. As always though, the earlier a homeowner who is newly distressed explores these options for their specific situation, the higher the likelihood they may find a solution, as their financial situation will not have fallen into such disrepair that these programs are of little help.