Homeowners with Wells Fargo who are facing bankruptcy or feel that this particular option may be inevitable for their situation have seen increases in terms of the number of homeowners who may be in the process of bankruptcy after unsuccessfully making their way through the Making Home Affordable Program. However, for those who are denied assistance through HAMP it needs to be remembered that there are opportunities to help these homeowners with the mortgage payment reduction assistance they need so that the end result of their situation does not have to be bankruptcy or foreclosure.
Yet, there are some situations where homeowners do turn to bankruptcy as a way to alleviate themselves of financial problems which could have been weighing them down for quite some time and when it comes to homeowners who were unsuccessful at acquiring a modification on their mortgage, Wells Fargo was one of these servicers who did see increases in the program totals that are tracked by the Treasury Department. As an example, for Wells Fargo homeowners whose trial modification was canceled, there were reportedly 12 more homeowners between the months of April and May who were in the process of bankruptcy and for homeowners who were not accepted for a trial modification, the number of bankruptcies in progress increased by a total of 194 between April and May.
Again though, Wells Fargo has not been the only servicer to see these problems among homeowners, as there are some men and women who resigned themselves to foreclosure, while others feel that bankruptcy may be able to protect them in some aspects of their financial life when their situation has deteriorated to a certain point. However, homeowners do still have options from servicers like Wells Fargo to not only get a more affordable payment on their home loan, but there are programs that can help these individuals in specific areas, like when unemployment is a problem.
Many homeowners are aware of extension programs or state-specific initiatives, but there are also housing counselors that can help homeowners better explore options beyond a home loan modification or may be able to help these individuals who are not offered a trial or permanent home loan modification from HAMP. Understandably, there are no guarantees but homeowners who look into foreclosure prevention efforts that may be available directly from a servicer, state housing agency, or even forbearance opportunities that could be helpful for homeowners who cannot make their home loan payment because of unemployment may find ways to not only avoid bankruptcy or foreclosure but find more stability in their finances so that they can focus on getting back on their feet and continuing to pay their mortgage without aid in the future.