In the Making Home Affordable Program, there have been some increases seen by servicers like Wells Fargo and others when it comes to borrowers who are current after failing to acquire a trial or permanent home modification but there have also been reports that track payment plan arrangements that do not involve a formal modification that have been offered to some homeowners after failure in HAMP as well. Yet, Treasury Department reports released here in September show that Wells Fargo has seen a mixture of results when it comes to homeowners who are current or offered a payment arrangement that is more suitable for their needs between May and June.
As an example, homeowners who were not accepted for a trial modification with Wells Fargo but were said to be current on their mortgage increased by almost 4,000 between May and June, but the number of homeowners who were offered a payment plan decreased by a little over 300 between this timeframe. The data in these areas is part of the totals being tracked by various servicers within the Making Home Affordable Program and has shown mixed results from one servicer to another as some are focusing on different alternatives, like short sales, that may be available to homeowners who are unsuccessful in getting a modification.
While the totals for Wells Fargo in the areas of borrowers who are current or alternative payment arrangements that were made for homeowners whose trial modification was canceled both decreased between May and June, homeowners need to recognize that if a modification is not available there are other routes that can be taken to help these men and women when it comes to finding the affordability they need or transitioning from their home when it’s simply unaffordable.
There are cases where homeowners may simply default even after being denied a trial modification or in some instances homeowners do not meet qualifications for these modification programs, as they may not have the types of hardship sources in their life that are required for this type of help. In some instances homeowners may simply be living beyond their means to meet their financial obligations, and this is obviously not going to qualify them for a modification plan that is being tailored to help homeowners who may have been unemployed, seen reductions in their wages, or have suffered an illness that has caused financial setbacks.
This is not to say that homeowners who are suffering from financial hardships will not be helped, but if a homeowner has a sufficient income to meet their mortgage payment, as opposed to those who may be without a job, a federal modification may not be offered and homeowners will have to explore other opportunities. While Wells Fargo and other banks have been able to offer in-house modification plans or payment arrangements in some cases, homeowners may need to simply reassess their financial life, speak with a credit counselor or housing counselor, and work to better organize their finances if these types of hardships are not present in their life and they cannot qualify for a modification program.