Reports released in October have shown that Wells Fargo saw a decrease in the number of alternative modifications made specifically for homeowners who did not qualify for a federal home loan modification plan, and this has led some to question whether there are alternative opportunities for a modification from this particular servicer if a homeowner is in need of mortgage payment assistance. While this data shows that, from June to July, there was a decrease in the cumulative total of alternative modifications made after a trial modification was denied or not offered, this does not necessarily indicate that homeowners with Wells Fargo do not have alternative options when a federal modification is unavailable.
The information provided states that for homeowners whose trial modification was canceled with Wells Fargo, the total number of alternative modifications dropped from 56,524 to 56,414, and this number for homeowners who were not accepted for a trial modification decreased from 42,908 in June to 42,889 in July. In some cases, the number of modifications on the books of servicers who have seen increases or decreases in these areas may have been removed, and this does not necessarily mean that there were no options available for homeowners with Wells Fargo seeking these alternative modification plans.
Yet, homeowners who are in a position where a federal modification is not offered may not always be able to take advantage of proprietary plans as a servicer may see that modification is simply unhelpful, which could indicate in certain instances why these numbers have decreased for some. Understandably, homeowners have seen situations arise over the past months where a simple reduction in their mortgage payment will not be enough to help them avoid foreclosure, and this may necessitate that other programs be used instead.
While homeowners with Wells Fargo will have to speak with their servicer to inquire about getting an alternative modification if a federal plan is unavailable, many major servicers like Wells Fargo do participate in many of the extension programs within the federal modification initiative and this could lead to refinancing options or unemployment forbearance, if a homeowner’s situation dictates this particular type of help. Obviously, many homeowners are still struggling to make ends meet so those who are pursuing a modification must make sure that they qualified and, more information on their specific case and how a modification may help can be found through either keeping in contact with representatives from their servicer or potentially contacting a housing counselor, but in instances where homeowners are looking into these alternative plans, modifications are not the only foreclosure prevention opportunity that may be available to help those in need.