Homeowners with Wells Fargo who have a second mortgage and are still struggling to make payments may find help from the second lien modification program, as there have been some positive reports as of late concerning not only Wells Fargo but the total number of the second lien modifications that have been offered to homeowners in need. Problems have arisen for homeowners who have a second mortgages in place when a primary home loan is modified but payments on their second mortgage are still problematic, which may cause them to miss payments and, ultimately, face the loss of their home even when they have one of these modified payment plans on their home.
Yet, for Wells Fargo, the number of total second lien modifications that have been started, as of July, increased from 7,143 in June to 7,882 in July. Also, homeowners are benefiting from this program simply because some servicers are able to offer homeowners either a partial or full extinguishment of the second lien on their home, which in some cases has made a homeowner’s mortgage payment commitment much more affordable when severe levels of financial distress are present.
In fact, Wells Fargo saw an increase in the number of homes that had their second lien fully extinguished from 111 in June to 277 in July, with the number of active second lien modifications offering at least a partial extinguishment of a homeowner’s second mortgage obligation currently standing at 7,555. Obviously, this program will not be helpful for everyone, but in instances where a homeowner is having issues with their second home loan, there have been positive results from this plan that may be the direct cause of foreclosure prevention for some.
Yet, homeowners with Wells Fargo or other banks may be able to look at their state housing agency as well, due to the fact that there are some programs in place and particularly troubled areas that may help homeowners address mortgage payment issues, be it on a primary or secondary home loan. While it will require that a state offer these programs and their servicer participate, homeowners are getting the opportunity to look at more foreclosure prevention options as not only are federal Home Affordable Modification Program initiatives still in place, with some being reviewed in the hopes of making them more efficient, but recent plans made available directly from states are also addressing issues that range from mortgage payment trouble to unemployment.
Homeowners should remember that the qualifications for some of these programs will require that they be in a specific position, but it will also require that homeowners do a great deal of paperwork in order to show their need for these plans. There are housing counselors that can help homeowners in this area, as some homeowners have received a great deal of information and guidance when it comes to dealing with their bank, but homeowners with a second mortgage or general home loan payment trouble need to remember that it will take the initiative on their part to begin exploring these plans and how they may help with a their particular needs.