Assistance For Delinquent Citigroup Homeowners From Federal And In-House Modifications–New Reports From HAMP

The number of homeowners with Citigroup that were tracked in the January 2011 Making Home Affordable report as being estimated to be eligible for the modification program and were 60 days or more delinquent on their home loan slightly decreased, and the number of trial plans offered to these homeowners saw an increase from the previous month report. However, there are still problems within the modification program that many officials and homeowners feel need to be addressed, but as there are increases in the number of permanent modifications being seen, some feel that simple restructuring of the program may be all that is needed to help prevent more foreclosures.

In the December 2010 Making Home Affordable report, it was stated that Citigroup had a total of 96,909 homeowners who were 60 days or more delinquent on their home loan, but there was a slight drop in this area to 96,302 homeowners in this category and the number of trial plans extended rose from a cumulative total of 169,336 to 171,604. Obviously, these totals are throughout the lifetime of the modification program, but with increases in trial plans offered and active modifications, there are still homeowners finding foreclosure prevention from this federal initiative.

Also, some reports have shown that in-house home loan modifications are doing better than the federal program, which have been one alternative route homeowners have taken to find the foreclosure prevention they need.  However, not all homeowners and officials feel that these efforts are doing enough to aid homeowners and some feel that these plans are actually doing more harm than good.

While homeowners with Citigroup do still have options from their servicer for a modification or alternative plans like short sales and deed in lieu of foreclosure programs, complaints over these programs and against servicers remain.  Many feel that banks are not doing enough to keep homeowners from struggling even when a modification is in place, as there are some homeowners who have redefaulted in both federal and proprietary plans, despite receiving lower mortgage payments.

Housing counselors have been suggested by the Making Home Affordable Program as these homeowner resources may be able to help homeowners through the modification program or guide them toward alternatives that may be available for their particular situation. Yet, despite the fact that Citigroup and other servicers have seen decreases in the reported number of delinquent homeowners this doesn’t meant that there aren’t still many in need nor is it a sign the modification program is without flaw.

However, homeowners in financial distress are still being urged to either contact their servicer to explore Making Home Affordable options or speak with an approved housing counselor so that the proper solutions for their mortgage situation may be found in a timely manner.