Citigroup Mortgage Payment Assistance From Home Loan Modifications–Are Lower Mortgage Payments Helping Homeowners?

Citigroup home loan modification plans have seen increases in the number of permanent home loan modifications that have been made from month to month, which has given hope to many homeowners who face the modification process in the hopes of acquiring a more affordable payment on their home loan. Home loan modifications have been used by numerous financial institutions as a way to make affordability apart of the homeowners mortgage obligation during tough financial times, but there are still homeowners who are seeking assistance as ongoing personal financial and economic troubles have caused problems in the housing market and the lives of homeowners.

Yet, Citigroup has seen success but there have been complaints as well. While there has been no institution that services mortgages that has gone without their fair share of criticism, many are wondering whether problems associated with the Making Home Affordable Program are the result of financial institutions, the program in general, or if problems are from homeowners. In all reality the problems may lie in a combination of all of these factors.

There have been some troubles on the part of servicers as questionable foreclosure practices have arisen for some, while others have stood by their foreclosure proceedings. Yet, there are stories from almost every service or where homeowners have been held in the modification program for too long, concerning the trial period, but some homeowners have also simply not met the qualifications set down from the Making Home Affordable Program.

Despite the fact that servicers like Citigroup have also offered alternative modifications directly from in-house plans, there are still homeowners who are not finding the sustainability they need to continue making their lower monthly payment obligation on their home. As a result, there are reports that homeowners are continuing to see defaults as a result of financial difficulties that have made mortgage modifications unhelpful.

Servicers, while they are not perfect, have made some modifications available to homeowners over the past months but concerns over homeowners being unable to continue making these payments may necessitate changes in modification requirements or could allow servicers the opportunity to step up and make more proprietary modifications if homeowners are unable to remain in the federal modification plan or even qualify in the first place.

Yet, modifications are still available and will continue into 2011 as homeowners are surely going to still face problems making their mortgage payment due to troubles like unemployment, and for this reason, advisers are still prompting homeowners to contact their servicer or consult housing counselors approved by the Making Home Affordable Program when it comes to addressing their mortgage payment difficulties.