Homeowners who have attempted to avoid the loss of their home by obtaining modifications have had alternative modification assistance plans available from various servicers like Citigroup over the past months. There have been reports which have indicated that, despite what many believe to be lackluster success in the federal modification program, private modifications have begun to outpace the federal programs in terms of finding affordable monthly mortgage payment options for homeowners in need.
Yet, homeowners with Citigroup and other mortgage servicers who offer these alternative modification plans have stated that there are still problems that remain and financial institutions should do more to prevent foreclosure by offering more widespread options in terms of modifications. However, many feel that the reason proprietary modifications from major mortgage services have had the success which has been reported over the past months is because they have been able to tailor modification programs to individual homeowners, in some ways in certain cases, instead of adhering to federal guidelines which have caused many homeowners to be disqualified from a modification.
There are still homeowners, though, who are finding assistance to alternative plans, as is evidenced in the Making Home Affordable reports over the past months. As an example, Citigroup had 35,306 homeowners who had had their trial modification canceled but were offered an alternative mortgage modification plan, according to the September HAMP report. Yet, that number for homeowners with Citigroup who had a canceled modification from the federal government’s plan rose to 36,144 alternative modifications as of October.
Understandably, federal modifications and proprietary, in-house modifications directly from servicers are no guarantee when it comes to preventing foreclosure, but homeowners are felt to have more opportunities now that servicers are offering in-house assistance programs which may help avoid the loss of a troubled homeowner’s residence. Yet, there have been some homeowners who have said problems still remain even within these alternative modification programs, and servicers are being prompted by some to revamp their efforts in terms of modification assistance programs.
Despite the fact that there are no perfect modification plans and servicers have not been without fault in their implementation of these programs, there has been some success seen by homeowners who faced foreclosure before a modification was offered. While these plans may not be available or helpful to all homeowners, advisers are still prompting these troubled individuals to contact their servicer to inquire about either a federal assistance plan or a proprietary modification, which may be helpful for their present situation.