Citigroup is one of the banks that is being tracked within the Making Home Affordable initiative who saw relatively little change in data reported by the Treasury Department concerning short sales and deed in lieu of foreclosure programs, according to reports released in early June. These reports tracked data through the month of March, but have given some indication as to how these particular programs have played out earlier in the year for certain banks.
However, there has been some financial institutions that saw an increase in the number of total initiatives within short sale or deed in lieu of foreclosure programming, while others saw their total for the life of their participation in these plans either drop or remain unmoved. Homeowners need to understand that where old short sale or deed in lieu of foreclosure files had been removed from a servicer’s portfolio it could lead to a decrease, but also, a high number of foreclosure alternatives would overshadow any decreases seen by these removals.
For Citigroup though, the months of February and March, which were tracked in the two most recent modification reports, little change was seen in the numbers for this particular area of the Home Affordable Modification Program, as homeowners with Citigroup who had their trial modification canceled remained unmoved from February to March and stood at 1,767 total. Yet, homeowners who were not accepted for a trial modification initially saw a slight decrease to a total of 1859 short sale or deed in lieu of foreclosure programs that are ongoing or have been processed by Citigroup.
Some homeowners may have been hesitant to explore this particular option, but also, it must be remembered that data from this time could also be affected by foreclosure moratoriums that may have prevented short sales or other movements in these homes where the homeowner could no longer make their mortgage payment. Obviously, before homeowners can qualify for a short sale or deed in lieu of foreclosure program they usually must be reviewed for a home loan modification, but as the data suggests, some of these homeowners had their trial modification canceled or did not qualify for a trial initially.
Questions over what reports released in early July will bring do continue as there are fewer setbacks seen as we progress through the early part of the year, in relation to foreclosure processing issues that were brought up previously, but there are some homeowners who have attempted to avoid a short sale at all costs due to the fact that it is not necessarily as beneficial to a homeowner’s credit score than had previously been thought. Homeowners do still have options to prevent foreclosure though, and do not have to resign themselves to a short sale if the federal modification plan is unhelpful for their situation, but exploring these alternative options soon after a federal modification is denied will be necessary so that homeowners stand the best chance at finding a solution before turning to these foreclosure alternatives.