Alternative modifications for Citigroup homeowners who have been unsuccessful in the Making Home Affordable Program have decreased according to the most recent Treasury Department reports which tracks the cumulative total of homeowners who have fallen into various areas after being denied a trial modification or having their trial modification plan canceled. Yet, this does not mean that Citigroup no longer offers proprietary modifications or assistance plans directly from internal programs, as well as state plans or extensions from HAMP but homeowners are able to use these pieces of information to better look at how Citigroup is assisting homeowners who are in need.
Most of the top servicers in the Making Home Affordable Program has seen various success in different areas, like alternative modifications, as of some are looking at increases in this area while others have continued to see decreases in terms of these totals that have been tracked through the month of June. For Citigroup though, both homeowners in the category of those who had their trial modification canceled and those who were denied a trial modification initially did see a drop in this area of those offered an alternative modification but some homeowners may be seeing success in other areas as well.
It’s because of the variability that homeowners have when it comes to their situation and what opportunities may be helpful that it’s often urged that homeowners explore programs like short sales, state-specific plans through initiatives like the Hardest Hit Fund, or speak with their servicer about in-house programs that may be helpful to meet a homeowner’s particular needs if a federal modification does not work. While the story of a homeowner being denied a trial modification or being unsuccessful at achieving a permanent modification is nothing new or confined to Citigroup, there are some issues on the part of these homeowners that have led to their denial and inability to qualify for other plans.
However, more homeowners hope that the continued increases that have been reported in the proprietary modification arena will be seen in the coming months as those who may not qualify for a permanent home loan modification or even a trial modification plan from the Making Home Affordable Program have relied on these servicer-direct modification plans in some cases as a way to prevent foreclosure. Yet, homeowners do need to remember that if issues like unemployment is a problem, there are programs within HAMP like the Home Affordable Unemployment Program that may offer assistance as well, as opposed to simply relying on modifications for a lower payment as a way to avoid problems with their home loan payment. Also, homeowners who are having communication problems with their servicer or questions about foreclosure prevention plans are still urged to contact MHA housing counselors as they may help guide homeowners through the modification process, point out common mistakes that homeowners make, or explain alternative programs that may be available in a homeowner’s area that could also offer lower mortgage payments or assistance.