Citigroup Homeowner Bankruptcy After Mortgage Assistance Plans See Differing Results After HAMP

Homeowners with Citigroup who were unable to successfully complete the federal Making Home Affordable Program may have turned to bankruptcy as a result, without necessarily looking into programs that may go beyond a traditional modification, but according to Treasury Department data there have been some different results for homeowners in terms of those who filed bankruptcy after being denied a permanent or trial modification modification. While bankruptcy is something that homeowners sometimes feel is their only option, this is not necessarily true as there are currently programs being used by servicers like Citigroup to address homeowner needs that may go beyond these modification programs.

Yet, there have been some homeowners who are currently or have been in the process of bankruptcy after not receiving a HAMP assistance plan, as the most recent Treasury Department data indicated that for homeowners not accepted for a Citigroup trial modification, there was an increase of over 100 homeowners who were in the process of bankruptcy between May and June, in the cumulative totals of Citigroup’s participation within the federal modification plans. However, it was reported that for homeowners whose trial modification was canceled the program total for the number of bankruptcies that had been seen by Citigroup decreased by a little over 50.

Obviously, homeowners are not guaranteed a trial modification to matter what their financial position is but this does not necessarily mean that homeowners have no other opportunities to avoid the loss of their home nor is it indication that homeowners have to file bankruptcy simply because their financial position has become problematic. While homeowners do have opportunities to find debt relief through programs that may be available from various lenders, when personal loans or credit cards may be involved, modification efforts by Citigroup may go beyond the federal modification program for many homeowners as there are private modifications that may be available, state programs may help homeowners who are having trouble, or programs within HAMP that offer refinancing or even the suspension of a homeowner’s mortgage payments for a set time.

However, what we have seen is some homeowners trying to ride out the difficult financial times they have had by using their savings, relying on credit cards, or simply struggling to make in the needs and many advisers often feel that this is a time that could be better spent either contacting housing counselors, speaking with representatives from one’s mortgage servicer or looking into these foreclosure prevention options more closely so that a homeowner may be able to pursue the best route of financial assistance for their situation. Again, there are no guarantees when it comes to foreclosure prevention but homeowners are being urged to not simply resign themselves to the loss of their home or bankruptcy if a federal modification is not offered as there are these alternative plans from different sources they can be beneficial in some instances.