Citigroup Underwater Mortgage–Servicer Programs And Homeowner Options For Negative Equity Solutions

Homeowners are seeing more difficulties related to underwater mortgages with a variety of servicers and for major financial institutions like Citigroup, who happens to be one of the larger servicers in the Making Home Affordable Program, homeowners are asking that more be done to help correct negative equity difficulties which homeowners have been seeing over the past months. While there are some servicer-direct programs that may help homeowners find the options they need for negative equity solutions, plans like the Home Affordable Refinance Program and traditional modifications have also been set in place to help homeowners who are still seeing issues related to their underwater home loan.

While the loss mitigation efforts for Citigroup in the third quarter of 2010 were reportedly favorable, due to the fact that these efforts, according to a Citigroup report, outnumbered foreclosure completions by a ratio of 5 to 1. Yet, there are still homeowners who are frustrated at the fact that they are facing a situation where they owe substantially more on their mortgage than their home is actually worth and, in certain areas of the nation, these property values are predicted to remain low for quite some time.

Yet, for Citigroup and other servicers who are addressing these underwater home loan issues, there are usually homeowners who either are looking for more affordability in their mortgage payment or who want underwater debt relief through principal forgiveness or programs like short sales and deed in lieu of foreclosure. There are some homeowners who can meet their monthly payment despite being in a negative equity situation, but it’s understandable that these individuals are frustrated when they owe on their home and are seeing their equity disappear.

Homeowners who have a guaranteed home loan by Fannie Mae and Freddie Mac may be able to participate in the refinancing program which is an extension of the Making Home Affordable Program, but Citigroup also uses loss mitigation efforts like modifications and in-house mortgage assistance plans to address mortgage payment issues if homeowners are in need of a more affordable monthly payment obligation. While it’s understood that homeowners have been frustrated and simply walked away from their underwater home loan in the past, plans which are hoped to bring about a solution to strategic default are also available to homeowners who qualify.

Citigroup and other financial institutions do offer short sales and deed in lieu of foreclosure plans, but this is usually only available to a homeowner after they have attempted to qualify for a modification or other foreclosure prevention programs when negative equity is causing a homeowner financial strains in terms of their mortgage payment. While homeowners can contact housing counselors or their servicer to talk about affordability options, budgeting, and home loan assistance plans, those who are facing a negative equity situation may need to contact their servicer to inquire about either federal or proprietary assistance plan which may be available for their particular situation as there may be some options for principal forgiveness or underwater refinancing available.