Citigroup has been one of the more successful lenders in the home loan modification program as the last report from the Making Home Affordable Program indicated Citigroup had made either trial or permanent modifications for half of the customers who potentially qualify for a home or modification.
However, there are other problems that are causing many homeowners stress and have caused the Obama administration to expand their efforts to provide mortgage assistance. Underwater mortgages and unemployment have been causing many homeowners and lenders trouble when it comes to mortgage payments.
Principal reductions and underwater forbearance programs are set to be fully used in the coming months by a variety of lenders as more and more homeowners are struggling to make their mortgage payment. Some lenders, however, don’t like these new plans, particularly principal reductions, but may offer in-house programs to help homeowners who are struggling.
Citigroup has stated that they have used principal reductions and will continue to provide assistance to homeowners who may not qualify for the Making Home Affordable Program. Obviously, many homeowners are frustrated with their current situation and want solutions that are going to be quick and effective.
It is being advised, since some lenders are using different programs to assist homeowners in a variety of mortgage distress situations, that homeowners should contact their lender and find out what programs are available for their personal situation and what is the best route to take for getting mortgage assistance.