Many homeowners are well aware of Citigroup’s home loan modification efforts as numerous financial institutions have participated in home loan modifications throughout 2010. However, for Citigroup and other mortgage servicers within the Making Home Affordable Program, programs that go beyond traditional home modifications may offer additional assistance to homeowners in particular situations.
Obviously, Citigroup is one of the financial institutions that can offer a second lien modification to homeowners who are having trouble making their mortgage payment and have not seen the affordability they need with only a primary modification. Homeowners who have a second mortgage have, in the past, complained that their monthly payment was still too high and this has usually been the result of a second lien which has not been modified to a more affordable level. However, servicers who participate in HAMP to offer modifications on the second loans, which again, has brought affordability to homeowners in certain situations.
Yet, another program which may help homeowners outside of the traditional modification is the Unemployment Program. This, again, is an extension of the modification program which Citigroup and other servicers use to address concerns homeowners may have when unemployment is a factor. Previously, homeowners were able to claim unemployment benefits as income and could begin the process of acquiring a home loan modification, but these benefits did not provide sustainable income and, as a result many homeowners either were disqualified from the modification process or redefaulted at a later time.
Homeowners with Citigroup may qualify for the Home Affordable Unemployment Program, which could offer mortgage payment forbearance to those who meet qualifications for three month or more. Understandably, unemployment has remained a major factor in the lives of numerous homeowners and, as a result, programs like the Unemployment Program were implemented from the federal modification program to address these issues.
While there are some homeowners who have benefited from these extension plans, some homeowners continue to suffer when it comes to making their mortgage payment and face foreclosure as a result. In some situations, a short sale or deed in lieu of foreclosure plan may be offered, but this is usually done on a case-by-case basis. However, no matter what situation a homeowner may find themselves in, it has often been advised that troubled individuals contact a mortgage servicer or consult qualified housing counselors for assistance with their mortgage payment needs. Servicers like Citigroup have not been perfect in their foreclosure prevention efforts, but there are forms of aid still available for homeowners who face foreclosure and these programs may bring the affordability and sustainability that homeowners need to prevent the loss of their home.