Citigroup is one of the mortgage services in the Making Home Affordable Program who saw an increase in the number of homeowners who were delinquent on their home loan. Since numerous homeowners continue to face foreclosure across the nation, many are wondering whether home loan assistance plans through modifications are able to prevent the loss of homes for the majority of homeowners in need.
According to the Making Home Affordable servicer report, 110,480 homeowners with Citigroup were 60 days or more delinquent on their home loan, as of August 2010. This number increased to 116,746 delinquent homeowners, as of September, according to both the September and October Making Home Affordable report, respectively.
Despite the fact that these delinquencies are increasing for numerous financial institutions, not just Citigroup, there is hope in the fact that there are continued increases in the number of modifications being made. However, there are those who argue that foreclosures are taking place at a rate higher than modifications are being implemented, and this may offset any success which is being seen through federal modification plans.
However, servicers are also using in-house alternative assistance plans through proprietary modifications which may be assisting a greater number of homeowners, according to reports. The HOPE Now Organization has reported that more in-house, proprietary modifications are being made to homeowners in need than governmental modifications, since mortgage servicers are allowed to tailor these alternative modifications to fit homeowners’s needs rather than apply universal requirements across the board, which is the case in HAMP.
Understandably, there are homeowners who are continuing to default despite having either a federal or proprietary modification in place, and this has led many to call on servicers to make more efforts concerning the assistance which can be offered through modifications.
It’s true that homeowners have had difficulties with mortgage servicers, and modifications are no guarantees to prevent foreclosure in all cases, but homeowners who are having trouble making their monthly mortgage payment are being advised to either contact their primary servicer or consult resources like the Making Home Affordable Program for more information on their foreclosure prevention options.