Citigroup home loan modifications have increased throughout 2010, in terms of permanent home loan modifications made to homeowners. These mortgage assistance programs from major mortgage servicers have all been part of the Making Home Affordable Program, which begun setting standards for home loan modification efforts due to cutbacks in the job market and financial difficulty seen by homeowners. However, a recent report by the Congressional Oversight Panel has stated that they feel the overall success of the federal modification program has been lacking.
Obviously, many homeowners have pointed to the fact that they have had troubles when it comes to dealing with their servicer, but financial institutions like Citigroup have been making alternative modification programs available to homeowners through in-house mortgage assistance plans. It has also been reported that these in-house modification programs have been helping a greater number of homeowners than the federal Making Home Affordable Program.
Many homeowners who have taken advantage of these in-house modifications have also reported that some problems have arisen, but the overall number of homeowners who are getting assistance compared to the federal modification plan shows that there may be more success when homeowners pursue these in-house modification efforts rather than the Making Home Affordable Program initiative. While federal modifications are still in place and do continue to provide opportunities for homeowners, concerns over the qualifications within HAMP have many who feel this is the reason for the low success rate.
Again, federal modifications have been seeing increases over the past months, but the number of foreclosures which homeowners are facing are beginning to catch up, which means that the federal mortgage assistance plan must be revamped or homeowners are simply in a financial position where they cannot afford a home even if the modification is offered. Understandably, unemployment does weigh heavily into problems homeowners are facing with Citigroup and other financial institutions, but many believe that if servicers are able offer modifications without strict guidelines, more homeowners may find the assistance they need as these modifications can be made to fit a homeowner’s particular situation.
However, no matter what plan works for a homeowner, be it a federal modification or an in-house modification, many officials simply want to see homeowners find affordability in their monthly mortgage payment and avoid foreclosure as a result. For this reason, many housing counselors often advise homeowners to take stock of their financial position and contact their servicer regarding federal or in-house modifications if they foresee economic troubles on the horizon or are currently experiencing financial hardships.