Citigroup has been offering homeowners foreclosure alternative programs, which are available through the Making Home Affordable Program, as a way to assist those who may qualify for these options and will allow them to avoid the foreclosure process despite losing their home. Numerous individuals who have come upon various mortgage troubles may be able to exit their situation in a more advantageous position if they can either use a short sale or deed in lieu of foreclosure option.
While there have been questions as to whether mortgage servicers have widely used these plans since some homeowners, like those with negative equity, may simply attempt to rid themselves of their mortgage debt obligation through these plans. Yet, there are reports that indicate servicers like Citigroup have provided foreclosure alternative options to homeowners over the past months.
As an example, the September 2010 Making Home Affordable Report indicated that Citigroup had made a little over 2,000 total foreclosure alternative plans to homeowners who were simply not accepted into a trial modification program and close to 2,000 foreclosure alternative plans for homeowners who had their trial modification canceled.
Homeowners who qualify for these foreclosure alternative plans may take less damage to their credit score as a result, seeing as how many of the individuals who qualify for these plans are those who were, until recently, easily able to make their mortgage payment obligations, but due to factors like job loss or an underwater mortgage, they are unable to meet the costs that are required for them to continue owning their home.
While, again, not all homeowners will qualify for these types of foreclosure alternative programs, individuals who are having trouble meeting their monthly mortgage payment obligation have been advised to contact their servicer before troubles began to mount. While Citigroup and other servicers have not been perfect in their implementation of mortgage assistance plans, there are still foreclosure alternative plans that are available to help homeowners who qualify.