Wells Fargo Bankruptcy Data Shows Mixed Information In HAMP Program–Assistance Plans Still Being Sought By Homeowners

Wells Fargo homeowners who have attempted to find foreclosure prevention options through the Making Home Affordable Program may have found that there are some instances where homeowners will either be denied a trial modification or have their current trial modification canceled, and this has led to a variety of paths that homeowners follow with one being bankruptcy, among others. Yet, Wells Fargo was reported by the Treasury Department to have seen some mixed results in this area as data from May to June of 2011 has shown that the bankruptcies for homeowners did decrease slightly, in terms of the overall total being tracked in the program, but there were also increases as well.

More specifically, Wells Fargo saw a slight decrease in the number of bankruptcies in process for homeowners whose trial modification was canceled between May and June, but there was an increase of 166 homeowners that had been tracked in this total for those not accepted for a trial modification. Understandably, when homeowners have their trial modification canceled or are not accepted into a trial modification plan this can pose a great deal of problems in a homeowners financial life, and this is where some opt for bankruptcy due to their inability to meet certain financial obligations.

However, while no homeowner wants to file bankruptcy or face foreclosure, there are housing counselors and even representatives from various servicers that may be able to address a homeowner’s specific issues or there may be opportunities to appeal a home loan modification trial cancellation or denial, that could lead to success down the road. What homeowners are being stressed to remember is that filing bankruptcy or resigning themselves to foreclosure is not the next step after being denied a Making Home Affordable assistance program, as there are proprietary plans from servicers like Wells Fargo and may offer affordability on a homeowner’s mortgage payment or state plans in certain areas that could also address the issues that homeowners may face.

Yet, what also needs to be remembered is that homeowners must take action quickly to begin looking into what these programs will offer as some homeowners meet resistance from their servicer, must resubmit paperwork multiple times, or generally have communication problems that could delay their acceptance into a modification plan or if a denial does take place, homeowners should be in a position where they have time to review other options or even contest their servicer’s decision and potentially be reviewed once again for a modification.

There are not always success stories in the world of home loan modifications, but homeowners with Wells Fargo, among other financial institutions, must make sure that they begin making contact with their servicer early, speak with housing counselors that are available from resources like the Homeowner’s HOPE Hotline, and even look to their state’s housing agency to see what options are available as, again, homeowners do have options beyond federal modifications or filing bankruptcy when financial troubles arise.