While there are some financial institutions who continue to struggle when it comes to helping homeowners find affordability in their mortgage, recent reports have indicated that Citigroup’s CitiMortgage has seen an increase in the number of permanent home loan modifications they have made through the Making Home Affordable Program.
Servicers in the Making Home Affordable Program have been criticized for not doing enough to help homeowners either acquire a home loan modification or sustain their monthly payment reduction plan through this federal assistance plan. Yet, servicers like Citigroup have seen increases in the number of modifications they have made throughout the year, which has helped many avoid the loss of their home due to foreclosure.
As an example, Citigroup’s CitiMortgage was reported to have had 49,538 active permanent home loan modifications in place as of September, but that number increased to 51,899 for the month of October, according the the Making Home Affordable monthly servicer report.
Homeowners have seen a slow down, in some cases, when it comes to these mortgage modifications from the federal government’s plan, and this has caused homeowners to become more critical of servicers like Citigroup, among others. However, there are reports that show servicers have been using alternative modifications for homeowners and, as a result, have been able to help a greater number of individuals avoid the loss of their home.
Yet, there are still problems that remain for servicers, and homeowners as well, but it’s hoped that with servicers using their own modification plans to address homeowner needs on a case-by-case basis, more assistance plans may be offered to prevent foreclosure.
Also, Citigroup and other top servicers in HAMP are also using extension plans that are set to address problems like unemployment or second liens on home loans, which are hoped to cut down on the number of foreclosures being seen across the nation. While, again, not all homeowners have benefitted from these programs and problems still remain, homeowners are being advised to contact their servicer or a HAMP-approved housing counselor if they begin having trouble meeting their monthly mortgage payment.