According to information released in August, Wells Fargo saw an increase in the number of Home Affordable Foreclosure Alternatives that were offered to various homeowners in the month of June, as indicated in Treasury Department reports. Within this data, Wells Fargo loans and loans that had previously been held under Wachovia Mortgage were tracked to see whether this particular servicer and other banks in general were seeing beneficial results and helping homeowners in terms of offering short sales or deed in lieu of foreclosure plans to those who may be in a position where foreclosure prevention efforts are no longer available to help their particular situation.
While homeowners are obviously looking for ways to keep their home, in the majority of cases, these short sale and deed in lieu of foreclosure plans have been able to help some homeowners more easily transition out of a situation where there are no options available beyond what have been tried, and in some instances homeowners had even been compensated through financial assistance programs to help them transition out of their homes when one of these foreclosure alternatives programs has taken place. Obviously, homeowners may benefit from these relocation assistance funds available from major servicers in this program, as those who have gone to the point where a short sell may be required could potentially be in a situation where the financing to relocate or even meet basic costs that may come with renting are simply unavailable at the present time.
However, for homeowners who may be in a position where they are pursuing one of these HAFA agreements, Wells Fargo’s numbers did see more positive results in the number of agreements that were started and the number of agreements that were completed in total between May and June. The report indicated that, as of May 2011, Wells Fargo had started a total of 5,328 HAFA plans and saw 2,478 total agreements completed as well. In the month of June these numbers increased to 6,229 agreements that had been started and a total of 3,123 agreements completed.
There have been more servers willing to work with homeowners in the area of a short sales simply because it can be easier to work with a homeowner to find a buyer for a property rather than to foreclose on them and potentially let the property set empty for a long stretch of time, due to the fact that there are not that many homebuyers currently in the housing market to absorb not only inventory that is currently in place but these new foreclosures as well. Homeowners do need to keep in mind though, a short sale or deed in lieu of foreclosure program can still do damage to a homeowner’s credit score and, even when one of these options may seem to be helpful for a homeowner’s situation, exploring foreclosure prevention efforts first is often advised to distressed homeowners, but homeowners also need to prepare for any financial setbacks that may arise when they transition from their home to a new living arrangement as a result of one of these foreclosure alternative