Homeowners with Citigroup seeking foreclosure prevention help through a modification have, in some cases, been unsuccessful at either receiving a trial modification or a permanent modification when a trial payment plan is in place, and this has led to foreclosures in many instances for homeowners who do not meet certain qualifications and cannot get a reduced payment on their mortgage. However, homeowners have also had trouble when it comes to completing the trial phase of the modification program, as homeowners with a variety of banks have defaulted even after receiving a reduced payment plan for a set period of time, which in some instances has simply not been enough.
Yet, when it comes to foreclosures for homeowners who were unsuccessful in the HAMP initiative, the number of starts and completions of these foreclosures differed for Citigroup, in terms of the cumulative total that has been tracked by the Treasury Department through the month of June. As an example, homeowners whose trial modification was canceled saw a drop in the cumulative total of foreclosure starts by almost 200 between May and June, and the total number of foreclosure completions that has been made as of June for this category of homeowners decreased by 32.
However, another category of homeowners being tracked are those who were not given a permanent modification, despite qualifying for a trial modification plan. For Citigroup, homeowners who had their trial modification canceled and saw an increase in the number of cumulative foreclosure starts between May and June from 7,151 to 7,020 and foreclosure completions increased from 6,574 to 6,780. It should be remembered though, that these are not the only foreclosures that Citigroup has made, but this is not the only category of foreclosure prevention assistance that is currently open to homeowners either.
Citigroup is one of the major banks that has been said by the Treasury Department to need moderate improvement in their modification efforts, but they do also participate in state-specific plans in some areas and may be able to offer homeowners assistance through extension programs within HAMP. Yet, no mortgage servicer has been perfect in their implementation of these homeowner assistance programs, which may require that homeowners seek outside assistance like aid available from housing counselors who may better help homeowners understand, explore, and apply for current loss prevention plans in place.
Homeowners are still in a position where foreclosure may be on the horizon or, in some instances, foreclosure is inevitable, but homeowners are being urged still to make sure that they address payment problems early as there are benefits to be had from modifications and even forbearance opportunities available from the federal modification program, when factors like unemployment may be causing problems. As foreclosures continue in many areas, homeowners may need to contact their servicer to see if there are any options that may help their specific case or look to their state housing agency for foreclosure prevention opportunities as well, but it should be remembered that these plans are not a guarantee so homeowners may have to explore multiple options when it comes to avoiding the loss of their home.