Wells Fargo Joins Principal Reduction ProgramPosted: January 21, 2013
The banking giant – best known for its decades-old stagecoach marketing campaign – has joined Keep Your Home California’s Principal Reduction Program, which offers homeowners as much as $100,000 to reduce their mortgage principal and monthly payments.
Keep Your Home California is anticipating the bank’s participation will lead to many more homeowners applying for mortgage assistance and allow them to get the help they need. If approved for the program, homeowners can save hundreds of dollars every month and tens of thousands of dollars over the life of their mortgage.
Wells Fargo joins several other major banks, including Bank of America and Chase participating in the Principal Reduction Program.
Keep Your Home California has made some big changes to the Principal Reduction Program, all in an effort to attract and make it easier for homeowners and mortgage servicers.
Most notably, the program eliminated the dollar-for-dollar match requirement by servicers last spring, taking on 100 percent of the funding. So, Keep Your Home California will commit as much as $100,000 per homeowner, handle the application and documentation, and oversee the entire process.
The changes were made with the goal of helpig more homeowners remain in their homes and maintain an affordable, sustainable mortgage payment for years to come.
Keep Your Home California has set aside about $772 million for the Principal Reduction Program, enough to help almost 9,000 homeowners in the state. $500 million is still available so homeowners are encouraged to apply while plenty of funding is still available.
Of course, Keep Your Home California depends on mortgage servicers participating in the program. Currently, about 100 mortgage servicers participate in Keep Your Home California, with almost half enrolled in the Principal Reduction Program.
Wells Fargo, after enrolling in Principal Reduction, participates in all four Keep Your Home California programs. The other three programs are the Mortgage Reinstatement Assistance, the Unemployment Mortgage Assistance, and the Transition Assistance Program.
If you would like more information about Keep Your Home California, check http://www.keepyourhomecalifornia.org/ (or http://www.conservatucasacalifornia.org/ in Spanish) or call 888-954-5337. The processing center is open 7 a.m. to 7 p.m. weekdays, and 9 a.m. to 3 p.m. Saturdays. Calls can be accommodated in virtually any language.
Keep Your Home California has provided nearly $240 million in funding to over 20,000 homeowners since the program started in February 2011.