Citigroup homeowners, as with homeowners working with other major financial institutions, have commonly sought out home loan modification programs from either federal or private sources in the hopes of bringing more affordability to their home loan payment. However, the Making Home Affordable Program report for October 2010 stated that there are options for some homeowners outside of modifications, as there have been payment arrangements between borrowers and servicers that did not involve a home loan modification.
As with in-house modification plans, alternative payment arrangements which do not constitute a formal modification, may be helpful to some homeowners as mortgage servicers like Citigroup are able to tailor a repayment assistance program to help a particular homeowner rather than applying general guidelines which must be met by homeowners, as is the case in the federal mortgage modification program.
A wide range of complaints have been waged against numerous financial institutions and the federal Making Home Affordable Program as well, but these modification plans, despite having helped some, may not be beneficial for all homeowners. It’s for this reason that many servicers began offering in-house modification plans, which are reportedly helping a greater number of homeowners then federal modifications in some cases.
However, when it comes to assistance outside of a traditional modification, the October HAMP report has shown that Citigroup had 982 homeowners whose trial modification was canceled found assistance through one of these payment programs outside of a modification while 6,572 homeowners who were not accepted for trial modification found assistance through similar payment arrangements that did not involve a formal modification.
It’s true that there are still problems that remain between homeowners and servicers, and general issues within the modification program continue to create trouble for some homeowners, but it’s hoped that with the continuation of the federal mortgage modification program and alternative assistance plans from numerous mortgage institutions like Citigroup, as well as expansion plans from HAMP and these non-modification repayment arrangements, more homeowners may avoid foreclosure in the coming months.
While no assistance program or servicer has been perfect, homeowners have been urged to contact their mortgage servicer before their mortgage troubles become too problematic and they find themselves in a situation where these mortgage plans may be unhelpful.