Homeowners have seen canceled trial modifications with Citigroup’s CitiMortgage, as this is a common occurrence among all financial institutions participating in the federal modification initiative, but there are reports which have been released here in the month of June from the Treasury Department that track what happened to homeowners after they were denied either a trial or permanent home loan modification, and sadly, foreclosure has been the result for many of these men and women who were unable to successfully navigate the waters of the federal home loan modification plan. Yet, Citigroup saw relatively few changes in this particular aspect of their foreclosures, which may be a positive sign or could point to underlying issues which have slowed foreclosures at the present time.
The data that was released for Citigroup and other servicers in the early part of June only tracked activity through March 2011, and many feel that the slow in foreclosures for both starts and completions, could be due to problems still stemming from the scandals which were uncovered late last year with a wide number other institutions. However, Citigroup saw little movement in terms of these foreclosures after homeowners had their trial modification either canceled or their application for a trial denied, where other servicers did see increases.
As an example, Citigroup’s CitiMortgage saw that from February to March of 2011, there were only one additional foreclosure starts and completions in the category of homeowners who had their trial modification canceled and were in the process of a foreclosure. Yet, for homeowners, during the same timeframe, who were not accepted for a trial modification, CitiMortgage saw a decrease in the number of foreclosure starts from 8176 in February to 7759 foreclosure starts in March. The number of foreclosure completions did rise though to a little over 5000, but this was only up slightly from the previous month.
The question of whether homeowners are seeing benefits from modifications or perhaps finding themselves in a situation where foreclosure is not imminent and foreclosure prevention efforts are helping remains to be seen, as there are factors that may play into these low foreclosure numbers, but there are more changes that have been implemented in the federal modification program due to what many feel to be poor results which may be leading to a more successful foreclosure prevention opportunity for homeowners in need. Understandably, Citigroup and other banks do still have problems which need to be addressed, but it is hopeful that some of these reductions in the number of foreclosures that are being faced are not simply due to ongoing legislation or reviews that some servicers may have participated in and have led to the slowdowns from the period this data is from, but rather, some homeowners may be finding themselves in a better position in terms of being able to qualify and afford a home loan modification.