Citigroup’s CitiMortgage Drop In Making Home Affordable Active Trial Modifications For June 2010 But Permanent Modifications Increase

The Making Home Affordable servicer performance report for June 2010 showed that Citigroup had a drop in the amount of active trial modifications that are currently in progress. The drop from May to June is being seen by some as a problem since many homeowners are still struggling to get a more affordable home loan payment. Also, lenders like Citigroup have been accused of not doing all they can despite seeing increases in the number of permanent home loan modifications they have made over the past months.

Homeowners who have seen a drop in the number of active trial modifications by Citigroup state that homeowners are not being given the opportunity they need to save their home. For instance, in the May 2010 Making Home Affordable Program report Citigroup was stated to have made 42,131 active trial modifications up until that point. However, the report for June stated that CitiMortgage only had 27,965 trial modifications in progress.

Yet, Citigroup did see an increase in the number of permanent home loan modifications from May to June as they jumped from 34,675 permanent modifications in May to 40,813 modifications as of June. The amount of permanent home loan modifications made as of June was up from only 10,929 permanent modifications for the January report of Citigroup’s modification performance.

Citigroup has also made efforts outside of the modification program to help homeowners by offering in-house mortgage assistance plans and by issuing foreclosure prevention programs to help homeowners who can no longer afford their home loan payment. Also Citigroup has issued moratoriums on foreclosures for those who are affected by the Gulf oil spill, which mirrors an act from December 2009 where Citigroup allowed homeowners who were facing foreclosure to stay in their home over the holidays.

However, it is understandable that many homeowners are troubled by the lack of assistance from some mortgage lenders and there have been horror stories from homeowners related to almost every lender in the modification program. Recently, a Congressional hearing was held to determine if lenders were in fact doing all they could to help homeowners who were facing mortgage troubles, and representatives from top lenders in the Making Home Affordable Program were present.

Citigroup has stated they are not only using modifications but second lien programs, deed in lieu of foreclosure plans, and again, in-house mortgage assistance programs, among other plans, for those who do not qualify for the Obama Making Home Affordable Program. While it is advised to homeowners who are struggling with their mortgage payment to first talk to their mortgage lender about assistance options, many believe that lenders care little about homeowners and their mortgage needs. While outside sources like the Making Home Affordable Program website are available, there have been scams perpetrated against homeowners that offer mortgage modification assistance, so homeowners who choose not to work with their lender primarily are being cautioned about these alternative forms of assistance from sources outside of lenders.