Homeowners with Citigroup have seen an increase in the number of bankruptcies that are currently in process according to Treasury Department data that provides information on homeowners who were unsuccessful in the Making Home Affordable Program, but there have also been relatively few changes when it comes to borrowers that are now current on their mortgage payment after being denied a modification with Citigroup as well. Yet, this has been the case for other servicers in some instances as well, but homeowners do still have opportunities for foreclosure prevention and ways to avoid bankruptcy with a variety of programs that are currently being used to help homeowners facing financial problems.
However, for those homeowners with Citigroup who did see an increase in the number of bankruptcies, it was reported that in the month of April there was a program total of 8,079 bankruptcies that had been in process or are currently in process for homeowners who were not accepted for a trial modification and that number increased in the month of May to 8,641. Also, for a homeowners who had their trial modification canceled, the program total for these homeowners in April stood at 3,719 but there was a decrease in the total number of bankruptcies on record for homeowners whose trial modification was canceled as this number dropped to 3,707 in May.
Many homeowners realize that there are some concerns that men and women face when it comes to avoiding the loss of their home, particularly when it comes to working with servicers to find an affordable solution for a homeowner’s predicament. There are cases where some homeowners have had to fight an uphill battle and have been successful at acquiring a federal modification, but many have often returned to the application process since they feel they may qualify for this potential plan but there may have been a problem with paperwork or simply dealing with their servicer.
Homeowners do need to remember that there are options outside of these modifications as some banks may even be able to offer a private modification plan, and unemployment mortgage payment forbearance option, and there are widely known state-specific initiatives currently in place that may be able to benefit homeowners in a variety of ways. Yet, in cases where some of these initiatives are not available for a homeowner or are outside of their ability to qualify, homeowners can talk with housing counselors or representatives from their servicer to look into options like extension plans within HAMP, which may also help them with their mortgage payment problems.
While there are no guarantees, officials keep reminding homeowners that foreclosure or bankruptcy isn’t necessarily inevitable if a modification is not acquired, but homeowners do need to be efficient when it comes to dealing with their servicer and exploring these options so they can find the best programs for their needs.