Wells Fargo homeowners have traditionally been pursuing a home loan modification, like those available from HAMP, when delinquency has become a problem, as homeowners are still slipping behind on their mortgage payments here in September and are seeing financial distress arise in their personal life when not only mortgage payments are difficult to meet but other debt obligations as well. Understandably, the entire purpose of the modification effort and these loss prevention programs has been to address homeowner delinquency and prevent further setbacks in the lives of homeowners, and for Wells Fargo, it has been reported that homeowners delinquent on their mortgage payment who potentially qualify a federal home loan modification program have decreased according to latest reports.
In May of 2011, Wells Fargo reportedly had over 129,000 homeowners who were delinquent on their mortgage payment, but in June Treasury Department reports indicated that this number had dropped to 127,686, which may be a positive sign in terms of the number of homeowners who are facing problems and may be in need of loss prevention aid from these modification plans. While there are no guarantees when it comes to a homeowner finding success in one of these programs, Wells Fargo has been one of the top servicers to offer not only federal modification plans but private home loan assistance programs and extension plans as well. This variety of foreclosure prevention options is hoped to address specific needs that homeowners may have and also offer alternative plans to those unsuccessful at receiving aid from specific programs.
Yet, as for this drop in Wells Fargo delinquencies, what homeowners may be seeing are improvements in their financial situation or aid from these programs in such a way that their circumstances are more affordable when it comes to meeting their mortgage payment, and when a homeowner can save money that was originally going to make their home loan payment, this can be beneficial in other areas of homeowners life where delinquency may be a problem. Homeowners with Wells Fargo or other major banks are not always going to see benefits to an extent where their financial problems will be nearly erased, but decreases in the number of homeowners who are reported to be delinquent in this area may be a good sign that, despite the fact negative conditions remain present in the economy and housing market, some homeowners may be finding their footing.
We have seen ups and downs in terms of delinquency rates and issues like negative equity, but homeowners may still be benefiting from is modification plans even though there are problems that servicers are being prompted to correct by officials. In some cases, there are certain banks that need a substantial amount of improvement while others are still making strides towards a more efficient modification plan and, it’s hoped that as a result of these changes, the delinquency level that has been decreasing for certain servicers will be the result of homeowners finding stability and it’s also the case where some feel more improvements may be seen as homeowners are offered more options for affordability on their home loan payment.