Citigroup has been one of the top mortgage servicers in the Making Home Affordable program over the past months and has been cited for offering additional forms of assistance, like moratoriums on foreclosures, for homeowners in certain troubling situations. While the number of permanent home loan modifications from Citigroup has been on the rise, their are many homeowners who say that servicers like Citigroup, and modifications in some cases, are simply not working in a way that is beneficial for homeowners who face foreclosure.
As an example, many point to the Making Home Affordable servicer report for evidence that more homeowners are not finding assistance despite the fact that more may qualify. Citigroup is said to have offered 148,274 trial modifications, meaning these trials were started, but only has 20,458 active trial modifications as of the July 2010 servicer report.
While there are individuals who put blame on lenders and others who believe that the modification program is simply unhelpful to homeowners who are in a dire situation, there are those who feel that more efforts need to be made to assist homeowners who are struggling. Obviously, a home loan modification for Citigroup homeowners who are in trouble would be greatly helpful as their mortgage obligations would be drastically reduced.
Yet, it was also reported that 77,502 homeowners had their trial modification canceled with Citigroup, as of June 2010, and had to seek alternative assistance or are in the process of selling their home, foreclosure, or bankruptcy. While there have been homeowners who have returned to a financially stable area and are no longer in need of a modification or mortgage payment assistance, questions still remain as to whether the modification program is simply unhelpful or if mortgage servicers are not implementing this type of assistance in a way that is beneficial for more homeowners.
There are arguments that some homeowners simply do not qualify for a modification under the Obama Administration’s plan, and it has been reported that many mortgage services are offering alternative modification plans which may be helpful to homeowners who are denied a permanent home loan modification from the Making Home Affordable Program. Yet, animosity still remains between mortgage servicers and homeowners as the housing market and unemployment problems continue as homeowners still look for ways to meet their financial demands at the present time.