Some Citigroup homeowners have had trouble even when a home loan modification plan is offered through the Making Home Affordable Program. Reports that homeowners still default when they are granted a trial modification plan or a permanent modification has caused concern as homeowners who cannot afford their monthly mortgage payment even when a reduction in their monthly mortgage payment or interest rate is offered points to problems that need to be addressed.
Citigroup does, however, offer alternative modification programs from in-house plans but there are reports that homeowners default while a private modification is in place at a higher percentage than those homeowners who are defaulting within the Making Home Affordable modification plan. Citigroup has seen an increase in the number of permanent modifications they have made, but problems where homeowners cannot make their payments even when a modification has been offered have caused many to ask various mortgage servicers to rethink their modification implementation strategies.
There are some who feel in-house modifications are not as affordable as those made from the Making Home Affordable Program and mortgage servicers need to address this issue. Yet, servicers like Citigroup who offer modifications from the Obama Administration’s plan or from in-house foreclosure assistance options point to the fact that some homeowners have simply gotten into such a difficult financial position that they will be unable to afford a mortgage payment no matter what modification options may be offered.
Some critics say that homeowners in certain situations are simply going to be unable to afford their mortgage, even if a modification is offered, due to the fact that financial struggles have taken their toll on homeowners to an extent that cannot be combated through the foreclosure prevention efforts that are offered from financial institutions. While servicers have not been perfect in their implementation of modification plans, it’s hoped that adjustments can be made to both governmental and private modification programs to decrease the rate of homeowner defaults and allow more individuals to keep their home during these difficult economic times.