Homeowners with Wells Fargo who were specifically in the category of those who were denied a trial modification or had their trial modification canceled may also be in a position where alternatives like a short sale or indeed in lieu of foreclosure plan were offered, as in some servicers are offering assistance through initiatives such as the Home Affordable Foreclosure Alternative plan but there are also some institutions that can also offer simple short sale plans to homeowners as a result of an inability to meet mortgage payment obligations in instances where foreclosure prevention assistance has not been made available. Yet, reports from the Treasury Department concerning Wells Fargo’s short sale and deed in lieu of foreclosure numbers for homeowners in these particular situations have shown mixed results between June and July.
This data which was released here in October shows that for all homeowners with Wells Fargo who had their trial modification canceled, the number of short sale and deed in lieu of foreclosure programs decreased, in terms of the cumulative totals, from 3,392 in June to 3,096 in July. Yet, for homeowners who were not accepted for a trial modification but received a short sale of DIL option, this number increased from 14,601 to 14,815. Obviously, this is not the first choice homeowners have when it comes to addressing their financial needs but many are seeing benefits from short sale programs as they can not only offer help when it comes to relocating, allow homeowners to get out of a bad financial position in terms of their mortgage payment obligation when financial problems have arisen, but there are some indications that homeowners may be seen in a better light from future lenders despite the fact that short sales and deed in lieu of foreclosure plans may lower a homeowner’s credit rating in some cases.
Yet, homeowners do need to make sure that they have a firm understanding of what opportunities are available when it comes to avoiding the loss of their home as some may be in a position to take advantage of programs that will help them make their mortgage payment for a set period of time, while others have benefited from principal reductions, and of course mortgage modifications, which may help lower their payments despite being in a situation where they may feel one of these short sale or deed in lieu of foreclosure opportunities will be their only option.
Again though, homeowners may have short sale opportunities from federal or private programs, and need to understand what will be required of them if they do participate in these plans, as homeowners need to be in a position where an agreement to sell their home at a loss or surrender their deed will not allow for a mortgage servicer, lender, or investor to pursue them for selling their home for less than they had originally owed, as some of these homeowners who are facing financial problems and participate in one of these options may have seen issues arise in the past. Yet, homeowners do have opportunities to consult with housing counselors or representatives from their servicer to inquire about how these plans will impact their situation can also get more information on how various foreclosure prevention plans may help their particular situation when it comes to keeping their home.