For Wells Fargo homeowners who may be looking to take advantage of the short sale programs or deed in lieu of foreclosure options from the federal Foreclosure Alternatives initiative, recent reports have indicated that Wells Fargo has made increases in the area of agreements started and completed under the Home Affordable Foreclosure Alternatives plan, which may be used by homeowners in certain situations where foreclosure prevention may not be available. Obviously, some advisers have been prompting homeowners to thoroughly explore foreclosure prevention as a short sale or deed in lieu of foreclosure plan could be a setback in the life of a homeowner, but there are those who find these routes more beneficial for their personal situation, as factors like negative equity or severe financial distress has hindered the effectiveness of some federal programs.
Yet, for Wells Fargo homeowners who have been looking into HAFA, it was reported here in October by the Treasury Department that the number of agreements Wells Fargo started as of August stood at 7,760, while the number of agreements that were completed also increased between July and August and were reported to be at 4,225. One of the main reasons that homeowners pursue short sales, in most cases, is due to the fact that they may have negative equity in place, along with other financial distress, that could make simple options like a modification, traditional refinancing, or even in-house assistance programs useless when it comes to helping a homeowner who simply can no longer meet their mortgage payment obligation.
Understandably, some homeowners have fallen into a position of such financial difficulty that there are few benefits to be seen even when mortgage payments are reduced, but homeowners can work their way through one of the short sale agreement it may help them through not only relocation funds but homeowners may get themselves in a position where, once escaping a troublesome mortgage situation, they can potentially find a more financially stable ground down the road and get their finances back in order.
Homeowners with Wells Fargo, among many others, who are participating in short sales may see that these agreements do take some time and, as a result, patience will likely be needed as some of these programs that work with homeowners to sell their home at a loss do have a number of hurdles down the path, and it could take some time for this opportunity to finally come to completion. However, ideally a short sale will allow a homeowner to avoid foreclosure, may help them with such costs as relocation expenses, and allow a homeowner to be clear of their mortgage when negative equity or other factors have been a problem.