Citigroup has been a mortgage servicer in the Making Home Affordable Program that has not only provided home loan modifications to homeowners through this program but it is also reported that alternative modifications are being offered to certain homeowners who do not qualify for a modification under the Obama Administration’s assistance plan.
Homeowners have been greatly frustrated and have accused many mortgage lenders of not doing all they can to help those in need. It’s obvious that homeowners become frustrated when they are denied a trial or permanent modification, but lenders like Citigroup have been offering alternatives to the Making Home Affordable Program that have been helpful in aiding homeowners who face foreclosure.
Yet, there are mixed feelings about these alternative assistance plans from lenders like Citigroup as many say they are not as beneficial as the Making Home Affordable modification program. Under the Obama Administration’s modification program homeowners may have their monthly mortgage payment reduced to around 31% of their monthly income. While the alternative modification programs available directly from mortgage servicers vary, many believe that these alternative options may be more costly to homeowners who are having financial difficulties.
Many servicers like Citigroup have come under a great deal of criticism from homeowners as more individuals say that banks must make a greater effort to help homeowners avoid foreclosure. Yet, alternative assistance plans have aided numerous homeowners over the past months and there are reports that more people are being helped from alternative modification plans than from the Making Home Affordable Program.
Troubles remain between mortgage servicers and homeowners but for those who are denied assistance through the Making Home Affordable Program these alternative modification plans from banks like Citigroup may be helpful in preventing foreclosure even if they do not reduce a homeowner’s monthly payment to a point that is as low as that within the Making Home Affordable modification program. However, homeowners who are at risk of losing their home are welcoming any opportunity they may find for a more affordable mortgage payment if they have been denied a modification from HAMP.