Homeowners with Wells Fargo who were seeking assistance with their home loan payments through HAMP and were unsuccessful have in some cases fallen into foreclosure but recent reports by the Treasury Department indicated that foreclosure starts and completions have decreased, according to these findings which were released here in early October. Obviously, foreclosures remain a problem across the nation but homeowners who are finding a federal modification program completion to be difficult often fear that foreclosure will be inevitable, but this is not always the case.
This data for Wells Fargo indicates that homeowners who had their trial modification canceled decreased in terms of the number of starts and completions that we are seeing as June data reported there were 16,378 foreclosure starts, which is a cumulative total for Wells Fargo, but July data showed that there were only 16,134 total starts. Furthermore, the number of foreclosure completions for homeowners in this category decreased from 10,669 to 9,968, which again is a cumulative total but has at least given some homeowners the impression that foreclosures are not as numerous as they have been in previous months. Also, for homeowners who were not accepted for a trial modification, both foreclosure starts and completions decreased as well, but these cumulative total decreases have not been substantial in terms of cutting the total number of homeowners who are facing the loss of their home in various situations.
What homeowners hope these numbers will indicate is that more individuals who are failing to take advantage of the federal modification program are being offered assistance outside of one of these payment alterations but will allow them to avoid the loss of their home as well. Not all homeowners are able to continue to benefit from a modification once it is in place due to prolonged financial distress and troubles, like unemployment, which may make meeting even a reduced payment difficult.
Homeowners with Wells Fargo, among others, are still being urged to seek out assistance and even housing counseling early so that they can address their financial need due to the fact that some homeowners may be in a complicated situation in terms of their earnings and ability to pay their home loan or modification plan. Some homeowners may have an excessive amount of debt obligations outside of their mortgage which could also hinder their ability to pay their home loan, and it’s because of this fact that these problems are still in place and unemployment remains a main factor behind the need for these assistance programs, that homeowners may stand to benefit more from addressing issues early and potentially exploring options that go beyond these federal modifications.