Citigroup Foreclosure Prevention Plans And New HAMP Data For Homeowners Seeking A Modification

Citigroup foreclosure prevention plans, like home loan modifications, may be helping more individuals avoid foreclosure as recent reports from the Making Home Affordable Program have shown that data for homeowners who were seeking a home loan modification but were denied assistance have led to fewer increases in foreclosures resulting from being denied a permanent home loan modification. While many servicers have seen ups and downs when it comes to not only permanent modifications that are currently active and foreclosures which have begun and been completed, Citigroup did see decreases in some areas related to foreclosure starts and completions.

According to new Making Home Affordable data, homeowners with Citigroup whose trial modification was canceled, according to the November 2010 report, did see foreclosure as a result of being denied a permanent modification. As of this report, which tracked data through the month of October, Citigroup had made a total of 11,267 foreclosure starts for homeowners in this category, but the total number of foreclosure starts for the following month stood only at 10,839. Also, in the same category of homeowners, the total number of foreclosure completions dropped from 2,743 to 2,499.

While this is data that has been compiled over the life of the Making Home Affordable Program for Citigroup, these are only a small cross-section of homeowners who may have faced foreclosure, and conversely, who may have avoided foreclosure through various home loan assistance efforts. Obviously, foreclosures have been numerous over the past months which have led many homeowners to question whether home loan modifications are actually helping homeowners or leading to more foreclosures as a result of complications that may arise or financial institutions who may not implement efficient modification practices.

However, Citigroup is one of the many servicers who participates in proprietary home loan modification plans which may be offered as an alternative to federal home loan modification programs and have reportedly offered a greater number of homeowners the foreclosure prevention assistance they need. Understandably, there are mixed feelings on these modification programs and the practices that servicers have used to help homeowners in these plans, but there are numerous initiatives which are currently in place to help homeowners avoid the loss of their home as a result of unemployment or other financial strains that may make meeting a home loan payment difficult.

As always, homeowners can consult their mortgage servicer primarily or talk with representatives from the Making Home Affordable Program and housing counselors to not only find assistance that may help them better budget their income so that they can meet their mortgage payments, but in cases where a modification is necessary, there are representatives who can guide homeowners through this process and at least offer them a higher likelihood in receiving a permanent modification in the long run.