The alternatives available to Citigroup homeowners in the form of short sales or deed in lieu of foreclosure programs have, according to Treasury Department reports, seen little movement over the past months in terms of the number of total short sale or deed in lieu of foreclosure agreements that were made for homeowners who either had their trial modification canceled or who were denied a trial modification initially. CitiMortgage does participate in the Home Affordable Foreclosures Alternative program, but some servicers, like Citigroup, also participate in these alternative programs from in-house initiatives that may not necessarily be associated with HAMP.
Yet, for homeowners who are looking to transition from a negative equity situation through a short sale, or in some cases a deed in lieu of foreclosure program, recent Treasury reports indicated that, for data tracked through March and April 2011, homeowners who had there from modification canceled with Citigroup have stayed at around 1767 total, in terms of those who saw a foreclosure alternatives plan offered. There was a slight decrease though for the number of homeowners who were not accepted for a trial modification and followed this particular type of foreclosure alternative route. The total number of homeowners being tracked in this category for CitiMortgage dropped by 50 according to the most recent HAMP reports from the Treasury Department.
However, homeowners need to understand that this does not necessarily mean that short sale options or deed in lieu of foreclosure plans are still unavailable, as there are a variety of servicers who are focusing more on these forms of home loan assistance in cases where homeowners are unable to meet mortgage payments or do not qualify for a foreclosure prevention assistance plan. While there are some servicers that are seeing lackluster results in certain home loan assistance areas, it needs to be understood that there are programs that may not be tracked within the Treasury Department reports, like proprietary home loan modification assistance options that homeowners may have as well.
When it comes to short sales though, it has been repeated over the past months that this is not necessarily the optimal route that a homeowner should take due to the fact that it may lead to negative impacts on a homeowner’s credit score that are comparable to a foreclosure. While homeowners may be viewed more positively if they work with their servicer to sell their home at a loss when financial distress has led to the inability of the homeowner to meet their monthly mortgage payment, short sales are not the next step necessarily after a homeowner has failed to acquire a federal home loan modification. For this reason, homeowners may be able to explore not only in-house homeowner assistance plans directly from their servicer but there are also various plans from state housing agencies that can offer aid directly to homeowners when financial the stress has prevented a them from being able to meet their home loan payment.