There have been reports released concerning the private home loan modifications that Citigroup and other financial institutions are making when a federal home loan modification plan is not used, but despite increases in the number of modifications that Citigroup made, and increases with other financial institutions as well, there are still questions as to whether homeowners are seeing benefits from this particular type of foreclosure prevention assistance. Issues that some have had to deal with in the area of private home loan modifications sometimes mirror problems that arise within the federal modification program, but there are some problems that homeowners may simply be unable to overcome even if a private modification is used.
While Citigroup did not see a substantial jump in the number of private modifications they made between April and May of this year, there was a slight increase from 4517 private modifications in April to a total of 4578 in May. However, Citigroup has seen problems with homeowners who are unable to continue making their mortgage payment even when a modification plan is in place, but this is not something that has been necessarily confined to Citigroup or private modifications.
What homeowners have questioned is why there are those men and women who are offered private modifications who still default even after they have entered into a private modification agreement, as it stands to reason that the servicers may be able to offer a more personalized home loan agreement for a homeowners situation, which could potentially prevent them from missing payments. Some homeowners have turned to these private modifications due to the fact that they may have even missed payments within the federal modification program or did not qualify to meet standards that are necessary to receive federal modification assistance.
Homeowners who are unable to meet modified mortgage payments on their home loan obviously may have to explore options outside of modifications as many men and women will, once again, turn to these private modifications after attempting to qualify for a federal modification plan. Yet, for those who may have missed payments and defaults once again even within a private modification agreement, when unemployment is the case there could be options like forbearance opportunities or state programs to help them avoid the loss of their home even when a modification is unavailable.
Housing counselors and representatives from mortgage servicers may be able to help homeowners explore the options available to them, but if a homeowner finds that they are having trouble meeting payments within a private modification agreement, it may be helpful to speak with a representative soon thereafter so that these alternative plans can be better explored and homeowners will potentially avoid facing foreclosure despite not benefiting from modified home loan payments.