Delinquent Citigroup homeowners may have assistance plans from either Making Home Affordable modification programs, or in some cases, even extension plans offered from HAMP as a way to help them afford foreclosure despite being in a position where they have missed mortgage payments. There is data that has shown that homeowners in the modification program with major mortgage servicers have either increased, in terms of the number who are delinquent, or have fallen over the past months, which may suggest that the modifications and solutions being offered to these homeowners is either helping at a greater number than those who are falling into delinquency or some homeowners may simply be finding stability in their financial life and, as a result, not falling behind on their mortgage payment.
For Citigroup, the number of homeowners, as of December 2010, who were more than 60 days behind on their home loan was reported to be 96,302. However, as of January 2011, the most recent HAMP report states that only 94,815 homeowners were estimated to be 60 days or more delinquent on their home loan payments. Obviously, the overall housing market has been looking for these drops in delinquencies, however, there are some financial institutions that have seen increases in the number of delinquencies from their homeowners who may qualify for a home loan modification and, at the present time, or in need of foreclosure prevention assistance.
Homeowners have also had problems even when a modification program has been offered as there are some indications that homeowners fall behind during the modification payment trial and permanent programs, which would suggest that either these plans are simply too expensive for some homeowners or there are further financial problems which have arisen for homeowners that either may need to be addressed through extension plans or could possibly simply put these individuals in a position where a modification is unhelpful.
Foreclosure preventions from proprietary home loan modifications have also been one of the alternatives that homeowners have used as a way to avoid the loss of their home when a federal modification plan has not helped, but even these plans have seen homeowners default once again after a reduced mortgage payment has been offered. Yet, homeowners are still being prompted to explore these modification programs by either talking with their servicer or a housing counselor before their home loan situation gets out of hand. Some homeowners have missed multiple payments before failing to contact someone who could offer guidance in terms of finding more affordability on their home loan, which could be troubling to those who may be unemployed or in a severe financial position of distress.
Homeowners need to understand that the modification program and various institutions charged with implementing these plans have not been perfect, but by addressing mortgage payment issues early, there could be more options available that could help homeowners through either the federal initiatives, in-house programs, or even foreclosure prevention efforts directly from state housing agencies, that could help address mortgage problems that are the result of unemployment, illness, or even negative equity.