Citigroup homeowners have struggled with their mortgage payments over the past months, as have many other homeowners with various mortgage servicers across the nation. While Citigroup is one of the top mortgage lenders in the Making Home Affordable Program, there have been numerous homeowners who are upset with mortgage lenders, like Citigroup, when it concerns the trial modification period of the making home affordable program.
Certain homeowners are disqualified from obtaining a permanent modification and, as a result of various factors, have their trial modification canceled. Many servicers have stated that homeowners either do not file their paperwork properly or completely, or they simply cannot afford their modification payment while in the trial plan.
However, accusations by many homeowners have suggested that many mortgage lenders are unwilling to help homeowners avoid foreclosure and obtain a permit modification. Yet, there are some homeowners who had their trial modification canceled but went on to other forms of mortgage assistance to help them keep their home.
According to the Making Home Affordable Report that was released for June 2010, Citigroup has a total of 68,818 trial modification cancellations up until May of 2010. While many may feel that this is a high number of homeowners who were denied a permit modification or had their trial canceled, there were homeowners who got alternative forms of help. For instance, the report indicates that 7,471 homeowners who had their trial modification canceled are current on their payments, 30,145 were offered an alternative modification, and 1,063 were offered a payment plan that does not involve a formal home loan modification.
Yet, there are still many angry critics of Citigroup who cite the fact that while some homeowners did receive alternative assistance, there were many homeowners who lost their home or are in the process of foreclosure. According to the June report, 6,232 homeowners filed bankruptcy, 1,017 homeowners are either in a short sale or deed in lieu of foreclosure plan, while 5,286 foreclosures have begun and 509 foreclosures completed.
Citigroup has seen an increase in the number of permanent home loan modifications they have made from month to month, but it’s understandable that many homeowners are frustrated when having their trial modification canceled. However, there are foreclosure alternatives that can be made available to struggling homeowners but it is often advisable that homeowners talk with their mortgage lender when their finances become troublesome. Some homeowners may wait too long before speaking with their lender, so the earlier one talks with their mortgage servicer the easier it may be to obtain some form of aid.
There are also assistance sources like the Making Home Affordable Program website that can be beneficial to homeowners who are seeking more information on the modification process and alternative programs that may be helpful for their mortgage situation.