Citigroup foreclosures that occur after the home loan modification program saw mixed results from the latest Making Home Affordable report as there are some homeowners who have either been denied a home loan modification trial or who were kicked out of trial modification period when they were unable to meet the qualifications of HAMP, but this has led many homeowners to ask if foreclosure is inevitable when a federal home loan modification plan is unavailable.
While foreclosures do still occur as homeowners are unable to find the assistance they need from a federal home loan modification plan, it was reported that Citigroup had 8463 foreclosure starts and 5067 foreclosure completions, in total, for homeowners who were not accepted for a trial modification, which was up from the previous month where 8138 foreclosure starts and 4650 foreclosure completions were reported, which again is the total for this particular servicer within HAMP.
Also, for homeowners whose trial modification was canceled, the total number of foreclosure starts from Citigroup rose to 9821, but foreclosure completions dropped to 2133. Again, the previous month’s data stated that Citigroup’s foreclosure starts stood at 9679 and foreclosure completions were at 2232 for this group. While there are some homeowners who may feel that these drops in foreclosure completions could point to positive signs, they could be the result of some homes being removed from a particular servicer’s portfolio, particularly when completions have seen drops according to HAMP reports.
Yet, no matter the number of foreclosures that are being seen, as there are some homes that will inevitably be lost, homeowners do not have to resign themselves to foreclosure if a federal home loan modification is not available. Many financial institutions who are in the federal modification plan are also offering in-house home loan modifications as an alternative to homeowners unable to qualify for modification assistance.
Understandably, there have still been areas of in-house modifications that homeowners have struggled with, as there are some complaints that sustainability and affordability in these particular programs directly from mortgage servicers are not helpful and homeowners have continued to default even after being offered this particular type of assistance that brings an alternative to foreclosure. However, homeowners can also contact their state’s housing agency or a certified housing counselor, like those that are approved by HUD, as there are further options that may be available like the Hardest Hit Fund, which has programs in various states to address negative equity, unemployment, or help homeowners who are simply behind on their mortgage payments.
Homeowners also need to understand that modifications are no guarantee, but by talking with a servicer early, consulting a counselor, or simply looking for options that a state may offer homeowners in distress, there are those who may find they can avoid the loss of their home with the help of programs outside of the federal modification initiative, if this option is not available for a particular homeowner.