Homeowners with Wells Fargo who have had trouble qualifying for a federal modification may have turned to alternative plans as a way to help them with their foreclosure prevention needs as there are indications that some servicers are focusing on proprietary modifications or alternative plans that may be beneficial for homeowners who do not qualify for HAMP assistance. Yet as we have seen modification alternatives both increase and decrease with some servicers when it comes to these alternative plans specifically for homeowners who have had their trial modification canceled or were denied a modification altogether.
For Wells Fargo, there were some increases in the program totals as seen in this area modifications, but there were also slight decreases seen for certain homeowners as well. According to the Treasury Department report released here in September, between the months of May and June Wells Fargo saw a decrease of a little over 300 homeowners, in terms of the total number of homeowners they have helped, for homeowners whose trial modification was canceled during this timeframe. However, Wells Fargo did see an increase in this program total between May and June for homeowners whose trial modification was canceled but were able to secure an alternative modification plan as this number increased by almost 400.
What homeowners are being urged to remember is that modifications are not their only option but there are some banks that may be more willing to work with a homeowner if a federal modification program is unavailable as some of these banks are more apt to implement alternative programs that may be helpful for homeowners who simply may not meet federal guidelines. What this means is that there are certain conditions that a homeowner may be unable to adhere to, like HAMP qualifications, but homeowners may still be a situation where they need help through a modified mortgage payment and are in the position where they will be able to sustain these payments if this assistance is offered.
Wells Fargo is by no means the only servicer to offer alternative modifications, but when it comes to these plans homeowners are not guaranteed to have success nor does a servicer necessarily have to offer an alternative modification program if the homeowner does not qualify for the Making Home Affordable initiative. However, there are still opportunities from extinction programs that may be helpful, as unemployment assistance, underwater mortgage assistance, or even short sale opportunities have been used by homeowners in the past to address certain mortgage payment issues and distress in their financial life.
As always though, housing counseling resources are available, and some homeowners are unaware of this fact, but it is worth exploring in some cases as homeowners who may have trouble with the federal home loan modification or a particular servicer could get outside guidance and advice that may allow them to find an affordable option when it comes to keeping and paying for their home.