Homeowners with Wells Fargo who may have been unsuccessful in the federal home loan modification program may be in a position where they can take advantage of private modifications or alternative programs that simply may be an option beyond these federal Making Home Affordable opportunities. Numerous homeowners have found that they may be able to benefit more so from a private modification, and in some instances there are reports being found that private home loan modification plans are helping a greater number of homeowners, which could be beneficial for homeowners who are facing the loss of their homes through foreclosure if some form of intervention is not given.
While Wells Fargo did see an increase in the number of Making Home Affordable Program modifications that had been made between May and June, which as of August is the most recent data we have, there were also increases in other areas of Wells Fargo’s modification efforts. As an example, the Treasury Department releases information on different types of modifications that may be available to homeowners and the success that has been seen in these programs. When these modifications are reviewed by investor types, we see that private modifications with Wells Fargo rose to a total of 15,229 in June, which was up from the previous month’s report where 14,313 of these modifications were seen.
Yet, when it comes to modifications, many homeowners will either pursue a federal home modification plan available from HAMP or proprietary modification initiatives, which again have seen greater success in some areas than these federal initiatives. There has been information which has shown that private home modifications outnumber these federal HAMP modification programs but there are homeowners who are seeing higher levels of delinquency and even redefaulting after one of these plans is made available, despite the fact that some feel homeowners should see more beneficial results from a proprietary modification plan since a servicer can potentially tailor the aspects of this plan to meet a homeowner’s specific needs.
Understandably though, many homeowners are still struggling with their mortgage payment and wish to avoid the loss of their home, but it also needs to be remembered that for Wells Fargo homeowners and many others with a variety of banks, modification plans are not their only opportunity necessarily. There are no guarantees when it comes to these foreclosure prevention efforts, but homeowners do have options directly from states or programs within the federal Making Home Affordable initiative that could address issues like unemployment through forbearance programs, which may be more helpful for certain homeowners than a modification at the present time.
Some homeowners have still had trouble when it comes to working with their servicer within these modification programs, so looking at these alternatives can be helpful as well since a homeowner may find that an alternate home loan modification plan could be more helpful for their situation than a traditional modification.