The following information is for anyone who needs help paying their Wells Fargo home loan, but it can be applied generally to almost anyone’s lender troubles.
Many would agree that a home loan is one of the most important bills a person will pay because failure to pay a home loan could ultimately result in the loss of the home. According to their website, Wells Fargo currently offers five options to help homeowners in distress pay their Wells Fargo home loan. They are:
Repayment Plan: This option will disperse delinquent payments over a period of time, usually ten months. During the repayment period the borrower’s monthly payment will increase, so the borrower should plan accordingly.
Loan Modification: This option will allow borrowers a chance to add any debts to the unpaid principal balance which is then dispersed over a new loan term. The rate that a person’s monthly payment amount will increase or decrease by will depend on how much debt is added to the new loan principal. This option changes the terms of the person’s loan, thereby modifying the loan.
Partial Claim (for FAH loans only): The Department of Housing and Urban Development (HUD) will advance a loan to pay the amount in default for the borrower. The advance provided by HUD is interest free and brings a person’s account up to date immediately.
Short Sale: This option allows the borrower to sell their home for less than they owe on the loan. The bank usually forgives the difference, but nothing says that they have to. In the event that a bank does forgive the difference, some homeowners may be surprised to learn that they will have to pay state taxes on the forgiven debt as earned income in certain states. The success of this option largely depends on the state that the borrower lives in and the amount of debt that the lender is willing to forgive.
Deed in Lieu of Foreclosure: This means that the borrower will voluntarily transfer ownership of the property to Wells Fargo if they can’t make the payments or sell the home at market value. Many people prefer this option to foreclosure because it is generally quicker to get approved and less likely to damage a credit score the way a foreclosure can.
While every person’s financial situation will be different, they shouldn’t have to worry that there isn’t a program for them. No matter where a person stands financially, Wells Fargo offers plenty of options for folks trying to pay off their Wells Fargo home loan.
If a person does not feel comfortable discussing such important matters directly with their lender they may find comfort in hiring an attorney to speak and negotiate on their behalf. Remember that the lenders are in the business of making money, so anything they can do to recoup their losses will be reviewed for consideration. Don’t be afraid to negotiate for the best possible terms. A lawyer can ensure that someone gets the best and most manageable terms as possible.