Citigroup’s modification program for home loans has been set in place in order to offer foreclosure prevention, as providing assistance to homeowners, from a variety of servers, is the basic goal of the Making Home Affordable Program, but there are still concerns over the ability of modifications to fight foreclosure. While Citigroup is one of many servicers who offers foreclosure prevention through home loan modifications, the Making Home Affordable Report has tracked foreclosures for some of the top servicers and the fate of homeowners who were either denied a trial modification or had their trial modification canceled.
While there were ups and downs for servicers in terms of foreclosures, Citigroup did see both increases and drops in the number of foreclosures that homeowners faced when they were denied either a trial or permanent home loan modification. As an example, the Making Home Affordable report for November, which tracks data through the month of October for foreclosures, stated that CitiMortgage had 11,276 foreclosure starts and 2,743 foreclosure completions as of October 2010 for homeowners who had their trial modification canceled. From the previous month, foreclosure starts were down as it was indicated that these homeowners in this category stood at 11,477 homeowners who faced foreclosure starts, but the number of foreclosure completions was lower as it was reported there were only 2,561 completions at the time.
Yet, the number of homeowners facing foreclosure who were not accepted for a trial modification did increase according to the latest Making Home Affordable Reports. The November report, which again tracks data through October for foreclosures, stated that there were 8,862 foreclosure starts in progress and 4,081 foreclosure completions. Yet from the previous month for homeowners in the same category, there were only 7,522 foreclosure starts and 3,107 completions.
Understandably, there have been homeowners who feel that mortgage servicers are not doing all they can to offer modifications and foreclosure prevention programs, but there are also problems with factors like unemployment which have caused many homeowners to either be disqualified from the home loan modification program initially or due to the fact that they defaulted while in a modification plan.
Long-term unemployment is still one of the main causes in the housing market which has caused a great deal of trouble, but with proprietary modifications and federal modifications still an option, as well as extension plans to address such issues as unemployment, it’s hoped that more foreclosures can be prevented in the coming months despite predictions that January may see a rise in the number of foreclosures due to foreclosure suspensions and moratoriums which were present in late 2010.