Homeowners in Mississippi who are struggling to stay current with their mortgage payments can understandably be concerned about the potential prospect of losing their homes if they cannot find a solution to their financial challenges. One option that has helped some people over the years is a home loan modification. This involves working with the bank lender to negotiate new terms such as a lower monthly payment and maybe even a reduction in fees so that owners are able to make their monthly payments.
For many homeowners who endured the hard years during and after the recession, a loan modification may have been sought. For those people with mortgages held by Wells Fargo, however, this effort may have not helped them but actually hurt them.
As reported by Fortune magazine, Wells Fargo incorrectly calculated the overall costs for numerous modification applications and, as a result, turned down those requests for modifications. This happened in an estimated 870 cases. Many of these cases ended up seeing people lose their homes to foreclosure. An initial report indicated that as many as 400 foreclosures happened due to this error. Now, however, it is said that up to 545 families endured foreclosures because of the bank’s error.
This experience may be an important lesson to homeowners. Having their own attorney can give consumers someone on their side when working to obtain a modification or to determine other methods of dealing with financial challenges when trying to avoid foreclosure or other actions. It may even be useful for consumers to consult with an attorney if a modification is approved to ensure the terms are accurate.