Citigroup home loan plans available to homeowners who are facing foreclosure have typically been offered in the form of home loan modifications, from both federal and alternative assistance plans, but there are concerns that issues which may arise in the housing market in 2011 could cause servicers like Citigroup, among others, to apply alternative programs in order to help homeowners either avoid foreclosure by finding more affordability in their monthly mortgage payment or by offering foreclosure alternatives.
Obviously, homeowners have struggled to simply make their mortgage payment for a variety of reasons and, in some cases, permanent home loan modifications have been the solution needed to prevent foreclosure. Yet, predictions that home prices may continue to drop in 2011 have many wondering whether traditional modifications will be beneficial when it comes to keeping homeowners from losing their home to foreclosure.
Citigroup and other major mortgage investors participating in the Making Home Affordable Program have offered modification programs to underwater homeowners, and refinancing has been available to those whose home loan is either owned or guaranteed by Fannie Mae or Freddie Mac. Yet, there are those who feel that modifications have simply delayed the inevitable for homeowners facing foreclosure as default rates within home loan modification programs remain problematic no matter if the program originated from a federal or proprietary program source.
For this reason, programs for homeowners to surrender their home or sell their property at a loss may become more popular among servicers or even necessary if property values continue to drop and homeowners still have trouble meeting their mortgage payment obligation despite being offered a modification plan. Citigroup and other servicers do participate in these foreclosure alternatives plans, through short sales and deed in lieu of foreclosure plans, but there are complaints from homeowners that these options are not always easily acquired.
Homeowners typically have to apply for some form of foreclosure prevention program before these foreclosure alternative options are made available, and this has created a difficult and long road for some as home loan modifications have had their share of problems when it comes to converting homeowners from trial modifications to permanent plans. Yet, homeowners with servicers like Citigroup do still have not only modification opportunities available, but extension programs which may address specific home loan issues.
While homeowners may be able to contact their servicer to address mortgage problems, there have also been advisers who have suggested that homeowners also seek out housing counseling assistance from reputable organizations recommended by HUD or the Making Home Affordable Program. Uncertainty over the housing market in 2011 have many wondering whether modifications will provide any help in relation to foreclosures or if more homeowners may lose their home as, reports have indicated, foreclosures have been outpacing permanent home loan modifications as of the end of 2010. Yet, resources for foreclosure prevention are still available to homeowners with a variety of servicers and through governmental plans which can help homeowners either avoid the loss of their home or transition from their current living arrangement without facing a formal foreclosure process.