Citigroup Alternative Home Loan Modifications After HAMP–Are Homeowners Getting Help To Reduce Their Mortgage Payments?

Citigroup homeowners are, like many others, finding themselves in various positions where home loan modification assistance could potentially help with certain costs associated with their mortgage payment by simply reducing the overall amount that they have to pay on a monthly basis, but there have been numerous individuals who are turning to alternative modification plans as a way to find this affordability when a federal program does not help. However, Citigroup homeowners did see a reduction in the total amount of alternative modifications that were reported according to the most recent Treasury Department reports, but this does not necessarily mean that there are no options beyond a federal modification available.

The most recent reports from the Treasury Department tracked this information from April and May of this year and it was stated that for homeowners who were not accepted for a trial modification the total number of alternative modifications that had been made dropped to 25,983, which was previously reported at 26,572, while the number of homeowners whose trial modification was canceled dropped by less than 100. These numbers are totals for the programs implemented by various servicers, and decreases may point to a homeowner either falling into foreclosure, becoming current on their mortgage payment when there financial situation improves, or decreases could simply be the result of a servicer writing off certain loans that have been on the books for a long period of time.

However, what some homeowners are worried about is the fact that certain servicers, like Citigroup, did not see an increase in this area of alternative modifications after a federal trial home loan modification was unsuccessful or not available. It needs to be understood though, homeowners are not only able to pursue an alternative modification or private mortgage assistance plan after they have gone through the federal modification program as there are some homeowners who may have initially not even qualified for a federal modification and as a result pursue a proprietary modification or alternative plan instead.

Understandably though, homeowners have not necessarily seen guaranteed success in these alternative programs and there are some servicers who may be offering options outside of alternative modifications more so to homeowners struggling financially. It was reported recently that Citigroup has been one of the major banks that are offering short sales and relocation assistance funds to homeowners as a result of their participation in this foreclosure alternative plan. Yet, homeowners still have options from state housing agencies or specific programs within HAMP that offer forbearance options, as an example, that may help homeowners outside of these modification initiatives.

Homeowners can still speak with their servicer regarding in-house modification plans as these alternatives have been able to help some homeowners more so than the federal modification initiative and there have been some reports that state these private plans have helped the greater number of homeowners as well. Homeowners do need to keep in mind that modification programs and servicers have not been perfect and there are still some hurdles that need to be overcome, but when a federal modification may be out of reach, looking into these alternatives may potentially provide the solutions that homeowners in certain situations need.