Denied Citigroup Home Loan Mortgage Modifications–What Alternative Aid Do Homeowners Have?

Homeowners with Citigroup who have been seeking a home loan modification through the Making Home Affordable Program may have been denied a trial modification or had their trial canceled. Understandably, the homeowners who may not receive assistance through a trial modification are often left wondering if there are options available outside of HAMP.

While homeowners who are denied assistance from the Making Home Affordable Program are often quick to accuse lenders of unjustly denying them mortgage assistance, many lenders state that some homeowners simply do not qualify. Citigroup, along with other mortgage servicers have often stated that there are cases where homeowners do not submit proper paperwork, may have a debt-to-income ratio that is already at or below a level where it would be if a modification were in place, or troubles where homeowners have defaulted within modification plans are reasons for denials of permanent modifications.

Yet, servicers like Citigroup also offer aid from in-house programs that may benefit homeowners in a similar fashion as a home loan modifications from the Obama Administration’s plan. Foreclosures remain a problem for many homeowners and there is concern that defaults still occur when modifications are in place, but homeowners are not without other options when it comes to mortgage assistance.

Citigroup is reported to not only offer alternative modification plans, but also foreclosure alternative programs as well. Despite the fact that some homeowners do still face foreclosure when they are denied permanent home loan modification assistance, there are homeowners who may be able to avoid the foreclosure process if the loss of their home is inevitable.

Also, programs like second lien modifications and even forbearance options for unemployed homeowners are programs that may be available in cases where an individual does not qualify for or benefit from a home loan modification.

Servicers like Citigroup have had difficulties when it comes to meeting the assistance demands of homeowners who are facing a default or foreclosure. Yet, homeowners are still in a position to take advantage of modifications both from the governmental program or in-house initiatives from servicers, as well as, foreclosure alternative plans, unemployment assistance, and even refinancing opportunities.