Many servicers have seen ups and downs when it comes to the number of trials that are currently active in the modification program, but when homeowners look at the total number of modifications that have been offered and started, and compare this data to the successfulness of a particular program, it may give those who are looking at mortgage assistance programs better idea of how their particular bank is doing in their federal modification program efforts. For Wells Fargo, the total number of trial plans that have been extended and trial modifications that have been started have increased according to data we recently received here in October, which may be seen in a positive light by some as this increase is being seen by many major servicers.
Yet, Treasury reports show that the number of total trial modifications started by Wells Fargo increased to 241,039 in August, with the total number of trial plans that were offered increasing to 327,369. Obviously, many servicers are seeing improvements in these areas, but where homeowners focus their attention is on such factors as conversion rates, how many homeowners default during a trial plan, and what problems may hinder homeowners from transitioning from a trial to permanent modification.
Homeowners who have been tracking this information have, once again, seen mortgage servicers increase in areas such as trial plans that were started, but when it comes to homeowners who are currently in a trial modification plan or an active permanent modification program, not all of these numbers show that a high rate of success has been achieved. Yet, the homeowners who do qualify for a trial modification plan may be in a position where they can take advantage of this program and subsequently find themselves in a permanent modification program if they make their payments on time, but this is where some may have faltered and had been booted from the program, have had to seek out alternative assistance, or potentially reapply.
When it comes to these trial modification plans, if homeowners are in a position where their modified payment is too expensive, it could be the result of an error on their part or in the calculation by their servicer, but in the case of Wells Fargo, the Treasury Department reported that they met the benchmark in terms of the percentage of calculation errors that were seen, and as a result were given the highest rating in this particular area. However, this is where homeowners will want to be careful when it comes to submitting their information as they want to give the most accurate information they can so that issues like this will not arise and their payment will be at its most affordable level.
However, homeowners who are struggling from setbacks financially and simply cannot meet their trial modification payment may want to look at other areas where they can cut costs, or even get financial assistance with other debts, as his could free up money to help with their mortgage payment. Yet, homeowners are still being prompted to talk with their servicer or a housing counselor to make sure that they are pursuing the right foreclosure prevention plan, as one of these federal modifications may simply not help a homeowner in their particular situation and, instead of taking this particular route, homeowners with Wells Fargo or other financial institutions may be able to use an alternative program to their advantage that will be more beneficial when it comes to helping them keep their home.