Efforts to stop foreclosure homes have been stepped up by Wells Fargo for its distressed borrowers across the U.S. in response to calls by various sectors for the prevention of further foreclosures.
Wells Fargo has been promoting three schemes by which its troubled borrowers can get help, in addition to carrying out the Home Affordable Modification Program of the federal government.
One of these schemes is its participation in the Project Lifeline, which was designed to help borrowers who are already in default by three months or more and who want to save their homes from foreclosure. Wells Fargo said that it will delay foreclosure filings for up to one month for borrowers who can show that they can work with the bank to find a repayment arrangement viable for both the borrower and the bank.
Wells Fargo explained that the steps for the Project Lifeline begin when the bank sends letters to certain distressed borrowers considered by the bank as qualified for viable loan modification. The next step is for the recipients of the letters to call the toll-free hotline of Wells Fargo at 866-488-2028.
Recipients should tell the responding bank representatives they have in their hands the Wells Fargo letter describing its efforts to stop foreclosure homes, that they want to work with the bank to save their homes and that they will seek financial counseling if required. Recipients will also provide additional financial information so the representatives can look for an appropriate solution that can work for the borrower.
The bank will delay foreclosure filings for up to a month as representatives review the financial situations of borrowers and modify their loans. If loans are modified to craft viable payment plans and if borrowers are able to sustain paying the modified loans for three months, the modified payment plans will be turned into longer-term payment agreements.
Another scheme carried out by Wells Fargo is the adjustable mortgage loan fast-track program, which provides a freeze on teaser rates for 5 years for certain kind of borrowers. The loans must have been made between the first day of January 2005 and the last day of July 2007 and must have been scheduled to reset between January 2008 and July 2010.
According to Wells Fargo, it has been finalizing its list of borrowers eligible for its fast track scheme to stop foreclosure homes and has been making efforts to ensure that notices are sent about 4 months before the reset dates of the ARM loans.