Reports released in October have indicated that Wells Fargo homeowners who are seeking mortgage assistance have seen increases in the number of permanent modifications that are currently active as data through the month of August has shown improvement in this particular area. Homeowners with Wells Fargo, among other servicers, have continued to see improvements in areas like permanent modifications, but there are still issues that some homeowners face in the federal mortgage modification programs that have hindered the success of some.
Yet, Wells Fargo reported an increase from 93,917 permanent modifications in July 2 96,046 permanent modifications in the month of August, but there are also some positive reports in the area of conversions that homeowners are seeing with Wells Fargo as some servicers have not been able to easily transition homeowners from a trial modification to a permanent home loan modification plan.
Treasury Department data released in October also states that the conversion rate of modifications for Wells Fargo from trials to permanent modifications currently stands at 85%, which is good news for some homeowners who may have found that there are issues when it comes to making their way through the modification program. Some homeowners have been trapped in a trial phase for much longer than is required, but this could be due to payment issues in instances where homeowners have not made three consecutive monthly payments within their modification plan.
Homeowners who are having trouble in the modification program are often found to be those that are unable to make payments due to factors such as a calculation that has given them a modified mortgage payment much too high for them to meet or instances where their financial situation may have deteriorated further or excessive debt obligations have simply made it difficult for them to take advantage of the modification plan. However, homeowners who are having trouble when it comes to getting a trial modification or transition to a permanent modification may find that there are options that may be a more helpful alternative.
No matter whether a homeowner is with Wells Fargo or another mortgage servicer, financial advisers often point out that some homeowners may simply not benefit from a modification plan and, as a result, other programs like the Unemployment Program or even state initiatives that may offer dischargeable loans or payment assistance programs could be of more use to homeowners rather than a modified payment. Some cases have arisen where homeowners have qualified for mortgage payment forbearance, which may be necessary to help those who are in a severe unemployment situation where long-term joblessness has been a factor. As always though, no matter what situation homeowner faces, addressing these issues early, speaking with resources like housing counselors or servicer representatives, and pursuing the proper mortgage assistance plan before financial distress becomes overwhelming will not guarantee success but can help homeowners stand a better chance at avoiding the loss of their home.