Homeowners facing mortgage debt problems have been actively seeking help to resolve their debts before ending up in foreclosure. Many have applied for assistance under the federal Homeowner Affordable Modification Program, which was intended to help homeowners obtain mortgage modifications to lower their monthly debt payments. Unfortunately for some, their modifications were either denied or cancelled, leaving them with few options.
Bite From A Big Bank
While some homeowners were successfully navigating their way through their loan modification process, others were left to seek bankruptcy after their bank denied or cancelled their modification. Mortgage holders with Wells Fargo have found themselves making, what they thought to be, payments towards their mortgage debts only to find out the modification never existed in the first place or had been terminated without their knowledge. For some, their debts were far too delinquent to halt the foreclosure process and they were left to succumb to the foreclosure or file for bankruptcy to protect the home.
Mortgage holders with other big banks have faced similar problems, but a much lower rate. The key difference being that the other big banks have stepped up efforts to assist homeowners in finding alternatives to the HAMP. All of the big banks are urging consumers to seek counsel from other lenders, credit counselors or attorney when reviewing all of their foreclosure alternatives and not to rely solely on the bank for help.