Homeowners who are looking for Citigroup home loan assistance plans in the hopes of finding mortgage debt relief and foreclosure prevention may be able to take advantage of one of several programs which are currently in place by a variety of mortgage servicers who are looking to provide foreclosure prevention aid and more affordability to homeowners who are in a troubled situation. Obviously, many homeowners are aware of the home loan modification program which has been used by servicers like Citigroup to provide the affordability homeowners need in order to prevent the loss of their home.
Yet, extension programs and proprietary home loan modifications from Citigroup, among others, may be less known among homeowners but servicers and advisers are trying to make more homeowners aware of these options as there are predictions that more homeowners may face foreclosure in 2011 than they did in 2010. While there is hope that foreclosures may stay low, these predictions have many worried that, despite indications that may suggest the economy could see an improvement in 2011, unemployment, underwater mortgages, and general financial difficulties may still remain at a level where these homeowners who are in a troubled situation could lose their home without assistance.
While Citigroup is one of the servicers participating in the Making Home Affordable modification program, there are also in-house assistance plans which are offered as an alternative to these programs which can lower a homeowner’s mortgage payment to a point where they will avoid the loss of their homes while they are facing financial trouble. Yet, homeowners may also take advantage of programs from the Making Home Affordable extension initiatives like the Unemployment Program.
For homeowners who are without a job, servicers have implemented the Home Affordable Unemployment Program as a way to either offer a lower mortgage payment on an unemployed homeowner’s home or offer them a forbearance on their mortgage for at least three months. While there have been some critics who feel that this forbearance program in particular is only delaying inevitable foreclosure, homeowners do have the option to either find some form of income which may allow them to qualify for a modification or prepare to lose their home through one of the foreclosure alternatives programs which, also, has been implemented by numerous financial institutions.
Understandably, homeowners would wish to avoid a short sale or deed in lieu of foreclosure plan if at all possible, but in cases where foreclosure prevention is simply not an option, homeowners may be able to move from their home without facing a formal foreclosure process. Yet, problems with underwater home loans may also still remain as property values in 2011 are not expected to increase by any dramatic means, so these issues are hoped to also be addressed in instances where a homeowner is facing default as a result of having negative equity in their home.
While traditional refinancing options are still available for Citigroup homeowners with not only their primary servicer but other financial institutions as well, there is concern that refinancing will also begin to slow in 2011 as predictions for mortgage interest rates seem to fall on the side of increases from the record lows which have been seen over the past months. Yet, there are some homeowners who may still be able to refinance and either receive a more affordable rate and lower payment or could shorten the life of their home loan while receiving a lower mortgage rate and erase their mortgage debt at a lower overall cost and in a timelier manner.
However, homeowners are still being prompted to either contact their mortgage servicer or an approved housing counselor if they fear financial trouble may be on the horizon or are beginning to see difficulty when it comes to making their mortgage payment. While there are no guarantees when it comes to preventing foreclosure, counselors or servicers, when contacted early, may be able to provide more opportunities for homeowners to avoid the loss of their home than if a homeowner waits until their financial position has become too problematic.