Citigroup Short Sales And Deed In Lieu Programs See Dips In HAMP But Alternatives To Foreclosure Still An Option

For Citigroup, recent Treasury Department reports have indicated that there has been little movement in the area of short sales or deed in lieu of foreclosure plans for homeowners who may have been either denied a trial modification or had there, modification canceled as a result of problems which may have arisen during a homeowner’s trial modification phase. Yet, this particular area of the short sale or deed in lieu of foreclosure activity for Citigroup does not mean that homeowners do not have opportunities for these particular foreclosure alternatives as there have been indications that many top banks, Citigroup included, are still seeing results in areas like short sales.

It was reported weeks ago that Citigroup is one of the mortgage servicers who indeed working with homeowners to complete short sales and are also offering financial assistance through payments to homeowners who work to complete a short sale agreement when other options may have failed and a homeowner potentially faces foreclosure. Homeowners may be able to take advantage of programs that will help them with relocation assistance, but there are also banks who are working with homeowners to complete these short sales in a timely manner, as some of these financial institutions feel that letting a homeowner fall into foreclosure could potentially be more problematic due to the fact that it could leave a home sitting empty.

Yet, homeowners with Citigroup and other financial institutions need to understand that a short sale is not guaranteed, and if a homeowner who happens to be in negative equity situation hopes to pursue this particular route or a deed in lieu of foreclosure program, they may not always qualify or be in a position to take advantage. In the past, some homeowners who were simply in negative equity position but were able to meet their home loan payment requirement have tried to qualify for these programs, but many homeowners who are successful at negotiating one of these foreclosure alternatives are those who may have faced foreclosure due to financial problems rather than simply a decrease in their property value.

Homeowners also need to remember that despite the fact that a short sale can potentially help a homeowner avoid foreclosure, it can still do damage to their credit score and, in some cases, homeowners have seen their score drop substantially, meaning that it was comparable to what would have occurred if a foreclosure had gone through. Yet, it has been stated by officials that short sales may be viewed in a more positive light, particularly when a homeowner works with their servicer, and since many of these financial institutions are offering payment incentives to homeowners, it could help with relocation costs, security deposits on an apartment or when renting at home, or it may simply help homeowners who are simply in a bad financial predicament and have lost a home to a short sale.

While short sales have been the choice of some, homeowners are again being advised to pursue as many foreclosure prevention plans as they may qualify for, as not only are banks like Citigroup, among others, using various foreclosure prevention efforts like modifications or unemployment forbearance programs but states may be able to help the homeowner as well. The need for a short sale or deed in lieu of foreclosure program may be unavoidable for some, but officials have prompted homeowners to explore options that may make their mortgage more affordable so that they can avoid the loss of their home no matter if it’s from foreclosure or one of these foreclosure alternative plans.