Citigroup saw some improvements in the Second Lien Modification Program according to Treasury Department data that was released here in September and has followed various servicer participation in areas like this a second lien initiative through the month of July. Some homeowners may be able to get a modification on their second lien that will allow them to find more affordability on their overall mortgage payment obligation, but there have been some homeowners who are saying partial or full extinguishment of their second lien, which will obviously go a long way when it comes to helping homeowners avoid the loss of their home when repayment is too difficult.
However, Citigroup saw increases in a variety of areas of this Second Lien Modification Program as the number of modifications started between June and July increased from 4,944 to 5,592 but there was also a big of a jump in the number of full extinguishments as Citigroup went from 791 in June to 1349 in July. This particular program has been able to help certain homeowners who may have a second mortgage and are not in a position to afford their primary and secondary mortgage payment obligation as a result of financial setbacks, so it’s worth exploring for homeowners who may have problems with their second home loan due to the fact that, again, some servicers are in a position where they may be able to erase a homeowner’s second lien obligation altogether.
There have been some states that are also working to address the problem of a second lien when homeowners may face the loss of their home, but usually the successful completion of the Second Lien Modification Program will require that homeowners show not only evidence of financial hardship but some may have to prove that they are in a situation where foreclosure could be preventable if this type of assistance is offered. Yet, these requirements are something that homeowners will have to show for a primary modification as well, so any Citigroup homeowners, or a homeowner with any other mortgage servicer for that matter, should be ready to address these requirements if their second home loan has been causing problems in terms of their overall affordability.
As always, homeowners who may have seen problems arise or are simply unsure of what programs are available do have resources like housing counselors and representatives from their mortgage servicer available, but many homeowners may fail to address their problems early enough to fully look into what opportunities are open and, as a result, some homeowners may miss payments or do damage to their credit score as a result of having to wait for some of these programs to come into effect and ultimately lower their financial responsibility on their home loan payment. Hopefully, homeowners who are in need in this area will take action quickly, despite the fact that there are no guarantees when it comes to foreclosure prevention, but homeowners do still have this particular opportunity as a way to make their second mortgage payment more affordable.