Citigroup home loan assistance plans that have typically come through the home loan modification program have had mixed results as increases in the number of permanent modifications have been seen by many major financial institutions but there are still problems and issues that homeowners feel need to be addressed due to the fact that they are possibly hindering a greater number of homeowners from finding foreclosure prevention. Understandably, modifications have not been the only option that have been needed by homeowners, due to the fact that there are some factors in place that may require supplemental assistance to a modification or may simply make the home loan modification program unhelpful.
As an example, Citigroup and other major banks within HAMP do have alternative programs that may be available for homeowners who, for instance, may be unemployed or are unable to make the mortgage payment due to negative equity. Also, options like second lien modifications have been beneficial for homeowners who may have been unaided by a primary home loan modification alone, in that they did not see a reduction in their monthly mortgage payment to a degree that allowed them to afford their mortgage.
However, homeowners have still had issues with a variety of servicers in that there are some banks that have been accused of either improperly processing foreclosures or denying homeowners a modification, when these homeowners believe that they deserved this form of assistance. Yet, there have been some homeowners denied due to not meeting HAMP qualifications, but this is where some officials and homeowners feel that changes could be beneficial in that some homeowners are denied mortgage assistance because their debt to income ratio is already at a level at or below where a modification would bring their mortgage payment or some modifications simply do not make sense from the mortgage servicer’s point of view, and therefore homeowners are denied.
Yet, when it comes to options outside of traditional modifications, some homeowners have been able to take advantage of the Home Affordable Refinance Program, when negative equity is their problem and there are also options for unemployed homeowners to receive forbearance while they are looking for work. These options do also go beyond even programs implemented by the Making Home Affordable Program as funds from the Hardest Hit Program have created state-specific plans that homeowners may be able to access for their particular home loan situation.
Understandably, there are still homeowners who are suffering from difficulties related to various factors, but when it comes to finding foreclosure prevention, homeowners are being prompted to act early so that they can avoid falling behind in their personal financial life and, in many cases, setting themselves in such a negative position that even if assistance is offered they cannot recoup losses from the financial troubles they have faced. Homeowners may still simply call their mortgage servicer and talk about options for their particular financial situation, contact approved housing counselors from the Making Home Affordable Program or the Hope Hotline but homeowners need to remember that even when these options are explored, they are no guarantee. It is hoped, though, that with multiple options available to homeowners in need, those who do not benefit from a traditional modification may still have foreclosure prevention opportunities for their home.