Wells Fargo homeowners who have faced bankruptcy after being denied a home loan modification have seen mixed results according to reports that were released here in July that tracked data from earlier in the year. In fact, reports bringing us information from April of 2011 have indicated that, in some cases, the number of bankruptcies that homeowners have faced after being denied a trial modification fell, while the number of bankruptcies for homeowners who had their trial modification canceled increased slightly.
This information is, once again, only through the month of April, but as a small number of homeowners, only 30 according to the Treasury Department report, faced bankruptcy after their trial modifications were canceled and for those who were not accepted for a trial modification, the number of bankruptcies in process decreased. However, the different aspects of the home loan modification report for various servers, in this case being Wells Fargo, have showed different results in some areas as total trial modifications may have risen, while the active number of trial modifications decreased, yet there are also some conflicts as foreclosures are down with some but up in others as well.
Usually, homeowners who are not accepted for the trial modification program have either been unable to keep their modification payments current and have therefore not been able to sustain a trial modification nor graduate into a permanent modification, but there are also these homeowners who were not except for a trial initially. Yet, there are also alternative plans that are being offered like proprietary home loan modifications or short-sale opportunities that are being extended to homeowners who do not qualify for foreclosure prevention assistance like that which a modification plan can offer.
For homeowners who worry that bankruptcy maybe an issue though, it needs to be understood that there are options that can offer more affordability for them in terms of their mortgage payment, and taking this drastic measure is not always necessary as bankruptcy can do a great deal of damage to a homeowner’s credit score and it could take years for them to overcome this setback. Wells Fargo has been one of the top participants in modification program and they have also been able to offer homeowners foreclosure alternative plans and alternative opportunities to qualify for foreclosure prevention efforts through in-house plans or extension programs like those that are set in place to help unemployed homeowners.
Essentially what this means for men and women who are struggling to make their mortgage payment is that while results like bankruptcy and foreclosure may be a possibility, and foreclosure prevention programs along with the servicers who implement these plans have not been perfect, homeowners have options that may help them keep their home, gain financial stability, and avoid these huge setbacks in their financial life. However, homeowners must make sure they explore these options early so that they will be in a position to find the best plan to fit their particular situation and avoid further issues with their mortgage.