Citigroup has been one of the top mortgage servicers who has offered homeowners the opportunity to find aid through home loan assistance plans from the Making Home Affordable Program and in-house plans as well. However, there are instances where homeowners with Citigroup are simply unable to avoid the loss of their home and, in these cases, homeowners may benefit from a foreclosure alternative program.
It’s been reported that many servicers, Citigroup included, have offered short sale or deed in lieu of foreclosure plans to homeowners who are facing foreclosure. According to the September 2010 Making Home Affordable servicer report, Citigroup assisted homeowners through these plans and cases where homeowners were either denied a trial modification or had their HAMP trial modification canceled.
According to the report, which tracks data through August 2010, Citigroup made 1,968 short sale or deed in lieu of foreclosure plans available to homeowners who had their trial modification canceled and 2,266 foreclosure alternative plans were made for homeowners who were not accepted into a trial modification program.
While it’s no secret that homeowners with any servicer would rather avoid the loss of their home than choose these alternative programs, short sales and deed in lieu of foreclosure plans have helped homeowners avoid formal foreclosure proceedings, which may be helpful in the future if an individual seeks to reenter the housing market. Short sales or deed in lieu of foreclosure plans can reflect poorly on a homeowner’s credit score, in some cases, but they may be seen in a more positive light and could be easier to overcome than a formal foreclosure or default.