Homeowners with Citigroup and other major mortgage servicers have turned to home loan modifications as a way to find affordability in their home and avoid foreclosure as a result. Yet, numerous homeowners with Citigroup, among others, have been unable to continue making their monthly mortgage payment despite having these assistance plans in place. In cases such as this, many homeowners have turned to foreclosure alternatives which are offered by servicers through the Making Home Affordable Program.
Yet, the success of these foreclosure alternative plans has varied as Citigroup saw a decrease in the number of homeowners who were offered either a short sale or deed in lieu of foreclosure program, according to the October 2010 Making Home Affordable Report.
October’s report stated that, for homeowners who had their trial home loan modification canceled, Citigroup and 1,968 homeowners in the process of one of these foreclosure alternatives plans through short sales or deed in lieu of foreclosure initiatives, as of August 2010, but the October report, which tracks data through September 2010, stated that Citigroup homeowners with a canceled trial modification only numbered at 1,963 who were in the process of a foreclosure alternative.
Also, the data for homeowners who were not accepted for a trial modification into Citigroup’s home loan assistance efforts saw a decrease as well for the same time period, according to the report in October. August data stated that Citigroup homeowners not accepted for a trial modification numbered at 2,266 who were in the process of a deed in lieu of foreclosure or short sale plan. Yet that number dropped to 2,246 homeowners, as of September, who were pursuing these foreclosure alternative efforts as well.
It’s understandable that not all homeowners will benefit from these foreclosure alternative plans as some either simply do not qualify or, as is the case with some homeowners attempting to short sell, a buyer cannot be found. However, there are homeowners who are still frustrated with servicers when these individuals have attempted to qualify for modifications or other foreclosure prevention efforts, met with failure, and were also denied the opportunity to avoid foreclosure through these alternative programs.
Yet, homeowners are still being advised to contact their mortgage servicer early if it appears a modification or other mortgage assistance plan will not be helpful and foreclosure may be inevitable. While not all homeowners may be able to find the success they seek from servicers like Citigroup in these foreclosure alternative plans, there are still opportunities available for homeowners to either surrender their deed or sell their home at a loss if an underwater mortgage is present.