Wells Fargo homeowners who may be in a position where a federal modification is unhelpful do have options through private home loan modification plans and alternatives available directly from their servicer as a way to help them avoid the loss of their home. While this is common knowledge among many, some homeowners may still be unaware of the opportunity for alternative home loan modification assistance, and as a result may benefit from this particular type of mortgage payment reduction plan if, once again, a HAMP plan is unhelpful. Yet, recent Treasury Department reports have shown that there has been little movement in terms of the number of private modifications that Wells Fargo has made.
However, this is not something that is uncommon as many servicers are focusing on governmental modifications or alternatives like short sales for homeowners who do not qualify for modification assistance plans. For Wells Fargo and their private home loan modification efforts, it was reported that in April 2011 there were 14,029 total modifications that had been made from Wells Fargo but that number only rose to 14,313 private home loan modification plans in the month of May.
Homeowners may have also noticed that in the area of the disposition path that a homeowner may follow after unsuccessfully pursuing a home loan modification, homeowners who were both in the category of having their trial modification canceled and not being accepted for a trial modification also saw a decrease in the number of alternative modifications that had been made. Yet, Wells Fargo homeowners need to remember that this does not necessarily mean that these options are no longer available, but again, some homeowners have been opting to pursue routes outside of private modifications, as there are some state-specific plans that have been helpful for homeowners, while plans like the Home Affordable Unemployment Program were recently revamped and now may offer a longer a forbearance period, which could be more helpful to homeowners than a modification.
Also, Wells Fargo has participated in short sale programs to help homeowners transition out their home when negative equity is a problem, so a wide range of options may be available for homeowners who are currently facing financial distress. In needs to be remembered though that homeowners should consult with their servicer or a reputable housing counselor for financial advice specifically related to their personal situation as some of these programs that are available may either be unavailable or unhelpful to a homeowner, depending on their current mortgage position.