In the wake of numerous foreclosure suspensions and reviews, Citigroup is one servicer who has said they will not suspend foreclosures as they feel their foreclosure documentation and processes have been correctly implemented over the past months. There are reports that firms which have caused trouble for servicers concerning the foreclosure documents were not used by all servicers and, for Citigroup, they had stopped associating with certain law firms under investigation.
While accusations that employees had not properly reviewed foreclosure documents in all cases have been popping up with some of the nation’s top mortgage servicers, those like Citigroup say that they feel no suspension is needed in cases of recent foreclosures. While there have been some reviews for financial institutions who are not suspending foreclosures, questions over whether proper proceedings were used on foreclosure documents in various states does not expand to include all mortgage servicers.
Citigroup has seen trouble with foreclosures, but these difficulties have come from homeowners and are being felt by all financial institutions. Reports indicate that some of the nation’s top servicers are still seeing defaults on home loans, despite banks like Citigroup offering foreclosure prevention assistance through home loan modifications. While there have been critics of servicers and the home loan modification program, Citigroup has seen increases in the number of permanent modifications they made over the past months within the Making Home Affordable Program and are reported to be one of the lenders offering private modifications as well.
Again, Citigroup has stated they are not planning to suspend foreclosures, but there is an overall hope that recent revelations over foreclosure processes may bring changes to the housing industry and foreclosure prevention efforts on the part of servicers. While it’s assumed that the majority of cases under review concerning the foreclosure suspensions will have been deemed worthy of a foreclosure, there’s hope that more strict review practices will be implemented on the part of all servicers so that homeowners who may be facing foreclosure can find more extensive mortgage assistance plans which could help them avoid the loss of their home.