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Wells Fargo Agrees to Modify Loans to Help Lower Bank Owned Homes Totals



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By : Clark Raitz    99 or more times read
With foreclosures and bank owned homes identified as major factors that hinder the recovery of Californiaís housing market, the stateís Attorney Generalís Office struck an agreement with lender Wells Fargo and Co. to have adjustable-rate mortgage loans modified in the area. A total of 14,900 of these mortgage loans, issued by banks acquired earlier by Wells Fargo, will be up for modification under the agreement.

Since Los Angeles short sale transactions and foreclosure buying activities in various areas of California have failed to lift the regionís housing market, local officials are turning to other options in the hope of controlling the flood of distressed properties entering the stateís housing market. The recent agreement with Wells Fargo is just one of the efforts being explored by California to stem the tide of foreclosures and improve its housing industry.

The AG Office is hoping that the modification scheme will somehow lower the number of foreclosures and bank owned homes in the state. The agreement is expected to result in reduction of interest rates and principal write downs estimated to be worth over $2 billion until June 2013. The deal between the AG and the lender will cover mortgages issued by World Savings Bank and Wachovia Bank. World Savings was purchased earlier by Wachovia, while the latter was taken over by Wells Fargo in 2008.

The state has tried various schemes to help the housing market recover, including promoting Los Angeles short sale transactions and similar procedures in various areas of California. However, the state remained among the top five regions with the highest foreclosure rates all over the U.S. in the past three years or so. This year though, the state seemed to have stepped up its foreclosure-prevention efforts with the modification deal with Wells Fargo.

Aside from the modification agreement, the state was also able to secure concessions for homeowners who lost their properties to foreclosures or saw their houses end up as bank owned homes. These concessions are estimated to be worth $32 million and are designed to benefit thousands of homeowners. The concession agreement is similar to the ones acquired by several other states like Florida, Arizona, and Colorado.
Original Post: http://www.foreclosuredatabank.com/foreclosures-blog/article/2377/wells-fargo-loans-bank-owned-homes on ForeclosureDatabank.com. Get a free foreclosure listings investment eBook with membership.

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