Trial home loan modifications are the initial goal of homeowners who are suffering from financial setbacks or hardships and, for homeowners with Citigroup, there are still options to acquire these plans, but as with many major financial institutions participating in the Home Affordable Modification Program, there have been some reports recently released by the Treasury Department which have shown slower progress in the modification efforts by banks. While Citigroup did see a slight increase in the number of permanent modifications that are currently active, the active trial modifications that they have made, according to reports released in early July tracking data through May 2011, show that there was not been an increase in this particular area.
In April of this year, it was reported that Citigroup had 5811 active trial modifications, while the May Treasury Department report indicated that Citigroup only had 5705 trial modifications that were currently active. Yet, between the April and May report, CitiMortgage did report 509 trial modifications, which shows that there are still opportunities for homeowners to receive this particular type of modification from the federal home loan assistance program.
Homeowners should remember though, there are some aspects of applying for a home loan modification that could hinder their progress and potentially cause them to be denied a mortgage assistance plan from HAMP. Homeowners with Citigroup or any mortgage servicer participating in the federal modification plan will have to make sure they submit a hardship letter along with documentation that shows they have seen a decrease in their income due to factors that may be related to problems with their job or other financial factors, like health issues.
Citigroup is still one of the major bank that offers mortgage payment assistance to homeowners, but many servicers are beginning to slow in terms of the number of modifications that are making as some homeowners are pursuing proprietary home loan assistance plans or short sales, which are part of the foreclosure alternatives route that homeowners may take if they do not qualify for foreclosure prevention aid. Yet, homeowners will need to contact the servicer and make sure they have all the required documentation they need to submit an application for a home loan modification plan and it’s hoped that with new rules in place which have required servicers to establish a single point of contact, the modification program or general foreclosure prevention efforts will be less troublesome for financially distressed homeowners.