Homeowners with a variety of mortgage servicers have had a great deal of difficulty concerning their mortgage over the past year or more, but modification efforts from servicers like Citigroup have been available to provide affordability to a homeowner who may be struggling in their financial life. Obviously, servicers and modification programs in general have not been perfect in their implementation of these plans, but Citigroup homeowners, among others, have also faced the problem of bankruptcy in certain cases.
The Making Home Affordable Program Report tracks the path of homeowners who are not successful in achieving a permanent home loan modification. Sadly, there are some homeowners who are currently in the process of bankruptcy, but even these numbers have begun to fall for some servicers. As an example, the September Making Home Affordable Report indicated that homeowners who had their trial modification canceled numbered at 3,630 who were in the process of bankruptcy. Yet, that number dropped to 3,579 homeowners for the October report, again for homeowners who saw the cancellation of their trial modification.
However, there was an increase in the number of bankruptcies in process for homeowners who were initially not accepted into a trial modification, again, according to the September and October reports. Yet, the troubles that have surrounded homeowners who have not received mortgage assistance are usually traced back to different causes. There are some who feel that mortgage servicers are to blame, and few of these financial institutions have escaped criticism, but others feel that modification qualifications or homeowners may be to blame.
Servicers like Citigroup argue that they must adhere to the Making Home Affordable guidelines when considering homeowners for a modification, which sometimes disqualifies individuals from the modification assistance they seek. Also, there have been troubles with homeowners missing payments even when a modification is in place, which is another factor that has led to homeowners being denied a permanent modification.
In-house modification programs are said to be on the rise, as programs directly from servicers are felt to offer more flexibility when considering homeowners for mortgage assistance, but there are still individuals who feel that financial institutions need to overhaul their modification programs so that more homeowners may find affordability in their mortgage payment.
Despite continued criticism against servicers like Citigroup and troubles between homeowners and these financial institutions, advisers are still making homeowners aware of the fact that modification programs are still in place from federal sources and directly from mortgage servicers, as well as extension programs from HAMP and mortgage aid from state housing agencies as well. While there are no guarantees when it comes to these foreclosure prevention efforts, homeowners do have more opportunities to avoid the loss of their home and it’s hope in the coming months, as the economy improves, problems like foreclosure and bankruptcy will begin to lessen and homeowners will find a more stable ground concerning their mortgage.