Homeowners with Wells Fargo who have turned to bankruptcy as a result of financial distress are among some who have seen problems arise after being denied a federal home loan modification from HAMP, but recent reports from the Treasury Department have shown that there was mixed results in this area for Wells Fargo, in terms of the number of homeowners who have found themselves in positions where they are in the process of bankruptcy. Yet, homeowners are often urged to remember that there are assistance options available that may help them avoid bankruptcy and foreclosure, as many servicers like Wells Fargo do still offer a multiple of programs that can be beneficial for homeowners in need.
Between June and July 2011, homeowners whose trial modification was canceled with Wells Fargo did slightly decrease, according to information released by the Treasury Department, as the number reported in June indicated that there were 787 total bankruptcies that had been tracked to date, with July’s information coming in at 784 bankruptcies had been tracked as of this latest report. Furthermore, homeowners who are not accepted for a trial modification with Wells Fargo and filed bankruptcy as a result increase from 4,166 to 4,619.
Again though, homeowners are in a position where they may be able to look for opportunities to help them outside of a modification as a federal home loan modification plan can be beneficial but it is by no means the only option that some homeowners have. Yet, when homeowners like those with Wells Fargo do find that they are struggling in various areas of their financial life and have waited until they have applied for financial assistance like a modification, can make their situation more difficult as the modification process could be time-consuming and potentially lead to more financial strains.
What homeowners are urged to do is address any financial problems that do arise in their lives by consulting with servicers, credit counselors, or even creditors in the hopes of finding solutions to the problem as not all homeowners who have filed bankruptcy with major servicers like Bank of America are necessarily doing so simply on the basis of having trouble with their mortgage. Others may have difficulty meeting payments on different types of debt then, when their mortgage problems arise, some feel that bankruptcy is the only option they have, as there are some homeowners who have been able to delay foreclosure as a result.
Yet, with in-house, private modifications and assistance plans available from many servicers, state programs that are set in place to help homeowners who may be struggling in a variety of ways, as well as continued options from federal assistance programs, homeowners do need to remember that if the time is given to explore these opportunities, bankruptcy and foreclosure may be avoided and, as a result, a homeowner may be able to walk away from the situation in a more positive financial standing.