Over the past months we have seen various results in terms of permanent home loan modifications that are being tracked within HAMP but some good news has come from these Treasury Department reports has been that some servicers are continuing to see increases on a monthly basis. Wells Fargo was one of these major servicers who did in fact see an increase, according to the most recent reports released here in early July that tracks data through the month of May. Although what we must remember is that these numbers are from earlier in the year, obviously, when some financial institutions may have still seen setbacks due to questionable foreclosure practices in the industry overall and factors like unemployment which may have led to more or less homeowners falling into delinquency and needing mortgage assistance.
While the federal home loan modification initiative has been criticized in the past for not helping as many homeowners as may have been possible, Wells Fargo and other servicers have seen more positive results through continual increases in permanent modifications that are currently active, even if it was not at a number that some homeowners felt to be the most efficient or the potential that the program could have reached. As an example, Wells Fargo saw an increase in the number of active permanent modifications from April to May as the number of these particular types of modifications increased from 86,235 to 88,269.
Questions over whether homeowners are still being helped are continually arising from those who have fallen into delinquency recently, but for homeowners who are also tracking these federal modifications, it must be remembered that homeowners are not only being helped through HAMP but other foreclosure prevention initiatives as well. Yet, this is not meant to be a defense servicer activity or justification of the Making Home Affordable Program’s numbers, however homeowners who feel that not enough is being done within HAMP may find that certain banks are using more proprietary home loan modifications or homeowners are being assisted through state-specific plans rather than federal modification programs.
For homeowners who are finding themselves in a situation where mortgage payment problems have recently arisen, the exploration process into what a modification can offer has begun and, for homeowners with Wells Fargo or other banks, contacting their servicer should be one of the primary steps taken. However, there are still free housing counseling assistance options that may help homeowners explore their options in terms of what specific programs may help a homeowner’s particular situation. Yet, the topic of home loan modifications is one that has been covered from various angles, but with continued changes and further foreclosure prevention options being made available to homeowners in certain states or more efficient options being implemented by specific banks within the HAMP initiative, homeowners who are currently searching for a modification need to keep in contact with their servicer or housing counselor to make sure that they are following the proper procedures that will allow them to more efficiently move through the modification process and find the help they need.