The Citigroup home loan modification program has been increasing the amount of permanent home loan modifications that have been made over the past months. According to reports from the Making Home Affordable Program, Citigroup had made only 10,929 permanent home loan modifications as of January 2010. Yet, according to the June Making Home Affordable servicer report, the number of permanent modifications that had been made jumped to 40,813.
While many homeowners have been able to benefit from the Obama’s Making Home Affordable modification program, there have been troubles for many homeowners who were attempting to either obtain a trial modification or simply make it through the trial modification process and gain a permanent home loan modification. Some homeowners were unable to meet the payments that were required for a modification trial period, submitted improper paperwork, or had a debt to income ratio that was below 31%.
Homeowners who submitted improper paperwork were, in some cases, given the opportunity to reapply for the modification program but those who had a debt to income ratio below 31% may have had trouble seeing as how homeowners in the modification program typically have a mortgage payment that is reduced to around 30% of their monthly income. Yet, there is also the problem that homeowners cannot afford to make home loan modification payments during the trial period since unemployment and other financial factors have caused a great deal of strain for many homeowners.
Yet, there have been a variety of alternative programs offered by lenders like Citigroup in cases where homeowners had their modification trial period canceled or were denied a modification altogether. For instance, homeowners with Citigroup that had their trial modification canceled were able to receive either a home loan modification alternative, an in-house payment plan from Citigroup, a short sale plan or participate in a deed in lieu of foreclosure program.
While not all homeowners are finding the assistance they need and some have become frustrated when working with lenders, there are more options now available both from the Obama Making Home Affordable Program and from lenders themselves. Homeowners can choose to talk with representatives from their mortgage servicer to help them through the modification program or alternative mortgage plans, but outside resources like the Making Home Affordable website and Hotline, or housing counselors approved by the Department of Housing and Urban Development have also been consulted by distressed homeowners.