Citigroup’s Making Home Affordable program participation has allowed for homeowners to acquire home loan modifications through the traditional mortgage assistance program, but there are additional programs that homeowners may qualify for in certain instances that could also provide the foreclosure prevention they need. These initiatives outside of traditional modifications come in a variety of forms and, even though there are some popular additional programs like the unemployment forbearance plan or underwater refinancing through HARP, homeowners do have further plans available which may help with their particular mortgage situation.
According to reports from the Making Home Affordable Program, Citigroup is one of the many servicers who participates in the Second Lien Modification Program, the FHA First Lien and Second Lien Program, as well as, the Rural Housing Service Modification Program. While questions over the success and continuation of the modification program remain, there are proposals to completely repeal the modification program as there are those who feel since the initial goal that was set will not be met, the program by and large has been a failure.
Yet, there are those who argue the limited success that has been seen, in relation to the initial goals, can be traced back to the lack of oversight and servicers simply not implementing the modification program in a way that is beneficial to all homeowners. While there have been problems traced back to both mortgage servicers and homeowners, when it comes to difficulties in the modification plan, there are those who feel that if more penalties are levied against servicers or incentives taken away, these banks may withdraw from this voluntary program and, as a result, would obviously leave homeowners looking for alternative foreclosure prevention efforts.
Citigroup has seen increases in the number of permanent modifications that have been made over the past months, as has been common for many of the major mortgage services within the Making Home Affordable Program, there are still questions as to whether more needs to be done to bring more homeowners the reduced mortgage payments they need to avoid the loss of their home.
While proprietary home loan modifications have reportedly been more popular among homeowners, in terms of the number of permanent modifications acquired versus federal permanent home loan modifications, homeowners do still have options from the federal home modification plan for foreclosure prevention. Homeowners may talk directly with their servicer or consult a reputable housing counselor for more information on affordability options and guidance through the modification program, but many fear that unless issues regarding oversight and the program’s implementation are addressed, the Making Home Affordable Program may still continue to limp along and not reach its full potential.