There is data to suggest that Citigroup is one of the mortgage servicers who offers alternative home loan payment plans to homeowners outside of modification options when the federal modification program does not work for a particular homeowner’s situation. Obviously, there are alternative modification plans that have been set in place by many servicers, but recent reports from the Making Home Affordable Program have stated that there are homeowners who have received arrangements with their servicer that does not involve a formal modification.
According to the December 2010 Making Home Affordable Report, the Citigroup homeowners whose HAMP trial modification was canceled were offered payment plans outside of formal home loan modification agreements and, as of the report, the total number of homeowners in this category numbered at 1,250. That number was up from the previous month where the total stood at 1,079 homeowners receiving a repayment arrangement outside of the modification plan. Also, for homeowners who were not offered a trial modification, the total for December’s report stood at 6,365 total repayment plans that had been made, which was a slight drop from the previous month where the total was stated to be at 6,603.
While federal modifications and proprietary home loan modification programs have both been used to assist homeowners who were struggling to make their financial ends meet, there are numerous outside programs which have also been instituted, as well as, these options between servicer and borrower which can offer even more opportunity for homeowners to avoid foreclosure when financial troubles arise. Obviously, servicers may be in a better position to offer homeowners particular assistance and payment restructuring in cases where a homeowner works directly with their servicer as opposed to going through a program where specific guidelines must be met.
Understandably, there are homeowners who are still facing trouble related to unemployment, as the loss of income is the main reason for homeowner hardship and 60.2% of cases where homeowners seek out a federal home loan modification assistance plan. Understandably, there are numerous homeowners who are at risk of default or who have currently defaulted on their home loan after missing numerous payments, but with options available to men and women through modifications, extension programs, and even servicer-direct assistance initiatives, it’s hoped that more foreclosures can be avoided in the coming months as homeowners seek a more firm and stable financial ground from which they can return to repaying various debts like their mortgage.