Wells Fargo to Offer 2nd-Lien Help in Foreclosure Fix Program

Wells Fargo has agreed to modify second-lien mortgages as part of the government’s foreclosure prevention efforts, becoming the second lender following Bank of America’s announcement in January to take part in the new program.

Designed to lower payments on second mortgages for distressed borrowers, the program is a component of the Obama Administration’s Home Affordable Modification Program, HAMP.

Wells Fargo also announced its own results in assisting homeowners facing possible foreclosure.  The lender said it has helped more than 180,000 second-lien mortgage customers through various programs, including loan modifications and subordinations.

And it has assisted more than a half million first mortgage customers with first-lien modifications, including 139,065 active trial and completed first-lien HAMP modifications.

Wells Fargo said that borrowers with second-lien mortgages who qualify for a first-lien HAMP should contact their first-mortgage providers to see if they are eligible for the new program. Mortgage servicers are required to contact all first-lien HAMP customers with second-lien mortgages “to make them aware of the new payment relief option,” Wells Fargo said.

“This new program will help expedite our efforts and likely increase the number of borrowers we can assist through loan modifications, which will benefit our customers, our communities and our shareholders,” said Kevin Moss, executive vice president of Wells Fargo’s Home Equity Group.