Wells Fargo homeowners are a few of the individuals who are in a position where they may be able to take advantage of the Home Affordable Foreclosure Alternatives Program, which is an extension of the Making Home Affordable Program in which homeowners may be able to use short sales or a deed in lieu of foreclosure programs as a way to avoid a formal foreclosure on their home. The Treasury Department has recently released data in early July that has been showing what the top banks are doing within this particular program, and there are some positive results being seen in the number of homeowners who have been able to complete these agreements.
Furthermore, there are potential increases on the horizon in the use of these programs as there are some banks who are looking to help homeowners short sell their home when foreclosure prevention efforts have not helped. Yet, it’s been reported that Wells Fargo has started 5328 agreements within this program and completed 2478, as of May of 2011, which could potentially increase in the coming months if more homeowners opt to use this particular route of homeowner assistance when foreclosure may be likely.
Homeowners should be aware of a few aspects of these programs as Wells Fargo and other banks may offer homeowners a short sale or foreclosure alternative option, but it is not necessarily going to be in a homeowner’s best financial interest to do so. While homeowners see this option as more beneficial than foreclosure, it must be kept in mind that a homeowner’s credit score can still suffer a great deal of damage even if one of these foreclosure alternative efforts are used by someone who has been suffering financial distress and cannot make their mortgage payment.
Understandably, homeowners who are in a situation where their home is underwater and they may simply be unable to make the required payments on their home loan may welcome the option to short sell, but again, there are not only modifications available from the federal initiative but in-house modification programs and options directly from a homeowner’s state housing agency that can be helpful when it comes to allowing them to keep their home. While this may not be the choice for some homeowners, it does need to be a factor in whether they decide to ask for a short sale or continue to look for foreclosure prevention options, as again, a homeowner’s personal financial life could see a setback even if a short sale is offered.
In terms of Wells Fargo homeowners, there was an increase in the number of permanent home loan modifications that are currently active according to the same Treasury report that tracked this HAFA data, so there are still options for this particular type of foreclosure prevention for homeowners who are still in a position where factors like unemployment or negative equity are weighing them down.