Citigroup’s CitiMortgage has been working with many homeowners through programs within the Making Home Affordable Program and has seen some success when it comes to making permanent home loan modifications available to those who are in need. Yet, despite troubles in the Making Home Affordable Program there are homeowners who simply do not qualify for a mortgage modification or those who still cannot afford their home loan payment even with a modification.
At this point, Citigroup, along with other lenders across the nation, have enacted foreclosure prevention efforts both from in-house programs and the Obama Administration’s Home Affordable Program. The foreclosure prevention efforts were often in the form of plans like short sales or deed in lieu of foreclosure programs. Homeowners who cannot afford their home any longer may be able to simply turn in the deed to their home and avoid going through foreclosure.
Homeowners who have been suffering from an underwater mortgage have had similar problems as homeowners who can simply not afford their mortgage payment. When the homeowner owes more on their home than it’s actually worth, it’s obviously a frustrating situation. Yet, even with underwater refinancing options or principal reductions, some homeowners simply want to be rid of their home or find they can no longer pay their mortgage even with these assistance plans.
Short sales have been offered for homeowners who need to get rid of their underwater mortgage but do not wish to go through the process of foreclosure, since that would cause their credit score to take a bigger hit. Short sales are usually agreed upon between a homeowner and their lender, and can be a way in which an underwater mortgage homeowners can be rid of their problem or home which is no longer affordable.
Citigroup, along with other lenders, have sought to help homeowners through various assistance plans, but there have been troubles for some homeowners. However, it’s still being advised that homeowners who are struggling with their mortgage should contact their lender or consult the Making Home Affordable website for more information.