Recent Treasury reports have shown that, in terms of homeowners who are making their way through the federal home modification plan, Citigroup saw a decrease in the overall number of homeowners who are currently in the process of or have been offered an alternative modification, but what homeowners want to know is whether this will influence their ability to find a modification even if a federal home loan modification program is unavailable. What many homeowners fail to realize, though, is that there are multiple foreclosure prevention options in place, despite the fact that the home loan modification program has been ongoing for years and has been extensively covered on a monthly basis.
The problem, though, typically surrounds the fact that some homeowners who were previously in a position where they had no problems meeting their mortgage payment and may have had little exposure to options like the federal home loan modification program, may now find that they are in a position where foreclosure could be imminent. While these homeowners are not specifically only found with Citigroup, many homeowners are only now starting the home loan modification process and are in the stages where they are acquiring information as to what assistance may be available.
Luckily for many of these homeowners, financial institutions like Citigroup do offer not only proprietary mortgage payment assistance but participate in extension plans and state programs that may help homeowners avoid the loss of their home. While homeowners specifically working with Citigroup will get the best information regarding their particular situation directly from their servicer or from an approved housing counselor, general programs that have been beneficial over the past months, in the face of problems that homeowners have had within the federal plan are those like in-house home loan modifications or state-specific programs that are available in particularly hard hit areas.
Homeowners may also want to research home loan assistance available specifically for certain situations like negative equity or unemployment, as there are plans outside of general modifications that can be used to the advantage of homeowners who may find that a simple mortgage payment reduction through a modification is simply not enough. Homeowners should keep in mind though, modifications through either federal or proprietary plans have had their fair share of trouble in terms of homeowners being unable to sustain even modified payments, due to factors like unemployment or a homeowner’s financial situation being in such a state of disrepair that a modified home loan payment is still too much for their income.
While reports that were released in early May have shown that Citigroup did see this decrease in the overall number of homeowners receiving alternative modifications, new reports are due out any day now and may show more improvements or could continue to report similar results from various servicers, as there are a mixture of results being seen not only from modifications and permanent assistance plans, but these alternative options as well.