The paths that many homeowners follow after being denied either a permanent home loan modification or a trial modification plan within the Home Affordable Modification Program will differ in that servicers report homeowners may either face foreclosure, bankruptcy, and be offered an alternative plan, or participate in a short sale program just to name a few of the end results that may arise. Yet, there are some homeowners with servicers like Wells Fargo who have been able to get themselves back into a financial position where they are current on their home loan and do not face the loss of their home as a result of financial distress which may have previously arisen.
In fact, data from the Treasury Department has stated that while there was a slight decrease in the total number of Wells Fargo homeowners who have had their modification canceled and became current on their mortgage payment between March and April of this year, the most recent data we have from reports released in July stated that, as of April 2011, Wells Fargo homeowners who were current on their mortgage after not being accepted for a trial modification rose from 44,548 total to 50,024 between March and April.
Homeowners question though if this is a sign that improvements are being seen in the personal lives of homeowners, but it needs to be understood that these increases have not occurred with every servicer. While Wells Fargo and some of the other major financial institutions did see increases in this particular category of homeowners who were not offered a permanent trial modification, there are still increases in foreclosures being seen, delinquencies that are plaguing homeowners, and the need for foreclosure prevention assistance remains in the lives of these individuals.
Obviously, programs like modifications can help homeowners who are facing financial distress, but in order to help homeowners become current on their mortgage, there may be different options available or even different situations in which a homeowner finds themselves that could impact whether they can get back on their feet financially in terms of their mortgage payment. Some homeowners are indeed only looking for a way to become current on their mortgage when they had previously fallen behind, and if financial situations improve or a homeowner is now in a better position but is still unable to repay missed payments, programs like those in the Hardest Hit Fund, offered in certain states, may allow for reinstatement assistance to homeowners in need.
However, there are some homeowners who simply cannot meet their modification payment and are still behind on their mortgage, and in these cases alternative options may need to be explored or homeowners may simply be in a position where foreclosure prevention plans would be of little help. Yet, when it comes to reinstate and plans that will help bring homeowners current, Wells Fargo homeowners and any homeowner with a servicer participating in HAMP will need to talk with representatives from their bank or housing counselors that may be available in their state as some of these options are only available in specific areas and may require that a particular servicer is participating in these types of programs even if they are being offered.