Some homeowners with Citigroup have been unsuccessful at finding the affordability they need in their home loan due to various problems and have turned to foreclosure alternatives like short sales and deed in lieu of foreclosure programs as a way to avoid a formal foreclosure despite losing their home. Homeowners who qualify for the Home Affordable Foreclosure Alternatives program are typically those who have attempted to modify their home loan through the federal Making Home Affordable Program but have been unsuccessful by either missing payments within the modification program or simply not qualifying.
Understandably, there are homeowners who have had difficulties when it comes to modifications and have not found the opportunity they needed to save their home, but options for short sale or deed in lieu of foreclosure plans have been available from many of the nation’s top servicers. Data from the Making Home Affordable Program has tracked the path of homeowners who were either denied a trial modification or had their trial modification canceled by servicers like Citigroup, and some have been able to take advantage of these foreclosure alternative options.
The latest report from the Making Home Affordable Program stated that Citigroup had 2,473 homeowners who were in the process of a short sale or deed in lieu of foreclosure programs after their trial modification was canceled. This data is through the month of October, and up from the previous month where only 1,963 homeowners who had their trial modification canceled were in the process of a short sale or deed in lieu of foreclosure plan. Also, homeowners who did not get accepted for a trial modification had foreclosure alternatives options and, for Citigroup, 3,664 homeowners in this category were in the process of a short sale or deed in lieu of foreclosure plan, which again was up from the previous month of only 2,246 homeowners.
While there are problems that remain in foreclosure prevention programs both from the federal government and proprietary programs made from servicers, there are still options for homeowners to avoid a formal foreclosure if they are left with no other options. While extension programs and modifications are still working to help homeowners with particular mortgage needs, homeowners who have run out of options may be able to request a short sale or deed in lieu of foreclosure opportunity as a way to avoid the foreclosure process and, possibly, reenter the housing market in a shorter amount of time.