Private Mortgage Payment Modifications From Citigroup–In-House Assistance Options For Homeowners Outside Of HAMP

Private modifications from Citigroup could potentially be an option for certain homeowners who are not able to qualify for a federal home modification or in cases where in-house assistance plans may be a better fit for a particular homeowner, this could be the route to foreclosure prevention that is best for homeowners who are struggling financially and looking for a way to avoid the loss of their home. Yet, these alternative modifications that may offer private programs for homeowners in need have not always been helpful, but they are in some cases the only resort that a homeowner may have after being denied a federal home loan assistance plan.

The different types of modifications that are available to homeowners may be limited in some cases, but for modifications that are classified as private, when broken down by investor types within the federal Making Home Affordable Program, did increase between May and June of this year, and as of the most recent report stood at 4593. However, alternative modifications that are being made by Citigroup may also be helpful in that homeowners who may be behind on their mortgage payment or who may be suffering from other financial setbacks could potentially benefit from these proprietary plans simply because servers like Citigroup could specifically work up an option for a homeowner’s particular needs.

For Citigroup homeowners who are struggling in areas like delinquency, there are some programs that may be able to help homeowners from these private initiatives that mirror Making Home Affordable opportunities that offer options like principal forbearance or term extensions. Homeowners may be in a position where they have only hit a rough patch for a short period of time, but after falling behind on their mortgage payment they may be at risk of foreclosure. This has been the case for some and there have even been further problems which arise where a homeowner may no longer be in a position where they can qualify for a federal home loan modification, but if Citigroup used options like term extensions or rate reductions in some cases, homeowners in these situations may be able to continue making their mortgage payment without fear of losing their home.

These private modification plans do still have problems and homeowners may see issues arise when it comes to some opportunities being unaffordable for their situation, despite a modification being in place. Citigroup is not the only servicer to see homeowners default even after modification has been made, but there are some homeowners who have been in a position where these in-house assistance options were made available and they fell behind on their mortgage payments once again. It’s because of this that some homeowners may want to not only speak with representatives from their bank but also counseling agencies that can help explore a wider span of programs that could potentially be available as not all homeowners are set up to benefit from a simple modification but may still have foreclosure prevention plans available to help them keep their home.