The latest reports for Wells Fargo have shown that there was an increase in the number of permanent home loan modifications that were seen between May and June of this year. This is obviously positive for homeowners who are seeking modification assistance due to the fact that there are still problems in the modification program in general, but there are further increases being seen on a month-to-month basis even though they may not be at a level that some officials and homeowners are happy with.
However, Wells Fargo saw an increase from 88,269 active permanent modifications in the month of May to 91,392 permanent modifications that were currently active in June. Many homeowners are aware of modification efforts by various servicers and are still in a position where they want to pursue this particular type of foreclosure prevention plan despite the fact that some homeowners have had a difficult road when attempting to find a lower mortgage payment on their home loans through this particular program.
Homeowners with Wells Fargo and other servicers may also be able to take advantage of in-house modification efforts or alternative programs available within HAMP or from state housing agencies that may address issues like negative equity or unemployment, but many homeowners are often prompted to try a permanent modification first as this type of foreclosure prevention plan is one of the more basic options that homeowners have in that it lowers the monthly payment that a homeowner must meet to a more affordable level, which is typically around 31% of a homeowner’s income.
In cases where homeowners may be unemployed, already have a mortgage payment that is at or below 31% of their total monthly income, or do not meet other qualifications, there have been issues which have arisen where homeowners feel that they may have been unjustly denied a modification and have obviously waged numerous complaints against servicers like Wells Fargo and others, but there are some instances where these men and women simply do not qualify. However, these programs have not been perfect and there are some mistakes which servicers have made, which has been evident over the past months concerning a variety of problems surrounding the foreclosure practices of numerous financial institutions.
Homeowners need to remember, as always, that if they are unsure of how to begin the modification application process, are having trouble dealing with their servicer, or are simply looking down the road for solutions to problems which may arise, outside assistance is available from resources like the HOPE Hotline. Yet, homeowners are being cautioned when using resources like a housing counselor as some scams have been perpetrated against homeowners when these reputable counselors are not used.
It’s understandable that when a homeowner faces the loss of their home due to foreclosure simple because they cannot afford to make their payments as a result of financial setbacks in their life, fighting an uphill battle to acquire modification only increases their stress level and it can make for a very frustrating situation to say the least. However, homeowners may be able to explore various options by contacting their servicer or outside resources like counselors to help them better understand not only what these federal programs being used by banks like Wells Fargo will offer but they may be able to give a homeowner a more specific overview of how alternative plans may be beneficial for their particular situation and what options are available from their state’s housing agency.