Home Loan Modifications And Foreclosures From Citigroup–Do Modifications Need To Change?

Servicers like Citigroup have been charged with implementing home loan modification plans from the Making Home Affordable Program over the past months, and have also reportedly offered private foreclosure prevention assistance through in-house modifications as well. However, recent drama concerning foreclosure processes and questionable documentation has brought many questions to the forefront of the housing issue.

While Citigroup is one servicer who has not suspended foreclosures and stands by the accuracy of their foreclosure proceedings, there is concern over the vast amount of homeowners who are still facing foreclosure with various financial institutions across the nation. Home loan modification data from servicers like Citigroup have stated that many of the nation’s top lenders are seeing increases in the number of homeowners who are being offered these mortgage assistance plans.

There have even been indications that, while the popular Making Home Affordable Program modifications are primarily sought out by troubled homeowners, private modification programs directly from mortgage servicers are assisting more homeowners. Also, servicers like Citigroup have even issued moratoriums on foreclosures in some cases where homeowners are facing a particularly difficult hardship, like those who were affected by the Gulf oil spill.

However, no servicer has escaped the fact that homeowners continue to default despite having mortgage assistance plans in place. Foreclosure suspensions and questionable foreclosure documents are said to be the result of employees simply signing countless documents each day without reviewing them, due to the high volume.

There are those who have asked if home loan modifications need to be restructured to allow homeowners the opportunity to find a lower-cost modification program, which may reduce the overall number of home loan foreclosures being experienced. Citigroup still offers modifications and has seen increases in the number of plans offered to homeowners over the past months, but again, defaults and foreclosures are still present.

While it’s hoped that these foreclosure suspensions will bring about changes for the better concerning foreclosure prevention programs, servicers like Citigroup do continue to offer mortgage assistance through modifications, second lien modification programs, and foreclosure alternative plans as well.

Homeowners and servicers have been at odds in some cases, but there are still assistance plans available despite widespread foreclosures across the nation. Servicers like Citigroup can be contacted directly when a homeowner wishes to begin a foreclosure prevention program or resources like the Making Home Affordable website may also be consulted for homeowners having trouble with the modification process.