Federal mortgage modifications from servicers like Citigroup have continued over the past months as a way of providing more affordability for homeowners who are struggling to meet their monthly mortgage payment obligation, but there are still homeowners in need of these forms of assistance in order to avoid the loss of their home. While servicers like Citigroup who have participated in this modification plan have seen some success, as HAMP reports have shown increases in the number of permanent modifications before 2010, foreclosures still remain a major problem for many homeowners.
Animosity between homeowners and mortgage servicers has also continued as many homeowners who have been denied assistance through the federal home loan modification program have placed the blame on the shoulders of their mortgage servicer. There have been cases where mortgage servicers have not properly implemented federal home loan modification plans from the Making Home Affordable Program, but servicers like Citigroup have also had homeowners who simply did not meet the federal qualifications for a modification.
Reports have indicated that, overall, mortgage modifications from the federal mortgage assistance plan have slowed down, but foreclosures have continued at a steady pace. However, homeowners who have been frustrated with their servicer and their experience in the Making Home Affordable modification program may have alternative mortgage assistance options available directly from lenders.
Citigroup homeowners, among many others, are still in need of mortgage aid due to factors like unemployment, which have drastically reduced the ability of many homeowners to meet their financial obligations, and as a result defaulting has become a problem. Yet, many major mortgage servicers have offered in-house, alternative modification programs to their homeowners in instances where a homeowner may not qualify for a federal home loan modification program.
While any type of modification, be it from HAMP or directly from a mortgage servicer, is no guarantee when it comes to preventing the loss of a home, advisers are still prompting homeowners who are struggling to contact their servicer or consult resources like the Making Home Affordable website in order to weigh their foreclosure prevention options. Modifications and mortgage assistance extension plans may be available to homeowners which can benefit them in their pursuit of more affordability in their home, but homeowners must address their financial problems early before their mortgage troubles simply get out of hand.