Wells Fargo homeowners who may be in a situation where financial distress is present and negative equity happens to be a problem have, in the past, turned to short sale and deed in lieu of foreclosure plans as a way to help them transition from their home when these problems are in place, and recently within the Home Affordable Foreclosure Alternatives program, Wells Fargo saw an increase in the agreements that were started and completed between August and September of 2011. Yet, homeowners do need to realize that a short sale on their home or surrendering their deed may not necessarily be best for their financial position, so it does help if homeowners do explore alternative assistance plans in some cases in spite of benefits that have been seen from these alternatives.
However, for those who have found that one of these foreclosure alternative plans will be best, Wells Fargo homeowners may benefit from these plans as, once again, the agreements started and completed did show improvement as starts increased from 7,760 to 8,476 and agreements completed increased from 4,225 to 4,798. Again though, homeowners do have options that may help them avoid seeking these alternative plans as there are also programs from Wells Fargo that can help homeowners who are even underwater as many who pursue a short sale will obviously be in a negative position but also unable to benefit from certain types of payment assistance.
Some homeowners have been able to take advantage of new rules set in place to allow for underwater refinancing, but in some instances a simple modification may work as well. Homeowners are often urged to look at state programs that may be in their area, as Wells Fargo can also help homeowners in this aspect but it does need to be remembered that homeowners will obviously differ in terms of their mortgage situation, financial problems, and potential solutions that will be beneficial.
While counselors may be able to help homeowners sort through these options, those who believe that a Home Affordable Foreclosure Alternatives plan will be the best as, again, there are some homeowners who may face the inevitable loss of their home through foreclosure even after pursuing foreclosure prevention options, and rather than file bankruptcy or lose their home to foreclosure, homeowners may benefit more in the long run by participating in these short sale opportunities.
They are not always optimal for homeowners, as short sales or deed in lieu of foreclosure plans can cause a decrease in a homeowner’s credit rating, it does need to be remembered that homeowners may be able to see more improvements if they can avoid financial setbacks that are the result of other debts that may be present and are suffering as a result of their mortgage payment difficulties. These foreclosure alternatives will not solve every problem but homeowners who are careful to consider their foreclosure prevention and alternative options may find that there are some benefits to be gained from the plans that are available from servicers like Wells Fargo when it comes to helping homeowners avoid further financial problems.