Mortgage assistance from Citigroup to homeowners seeking help with their second lien mortgage payment is seeing some improvements in the Second Lien Modification Program but there have also been some decreases, which have left homeowners questioning how beneficial or available this program may be from certain financial institutions. Yet, Citigroup homeowners, among many others, do still have these opportunities available from major financial institutions participating in HAMP, but decreases are also being seen in some areas as well, which could be the result of a variety of factors.
Yet, the number of active second lien modifications from Citigroup that had a partial extinguishment of the second lien had numbered at 4,211 in July but this number increased to 4,425 in August. This obviously points to the fact that there are still increases being seen in the transition from the application stage to an active second lien modification with Citigroup, but the number of second lien modifications that had started between July and August decreased from 5,592 to 5,368. Also, Citigroup saw a drop in the total number of fully extinguished second liens that have been tracked as 1,349 were reported in the July Treasury Department report with only 893 being reported in August.
However, as homeowners still continue to struggle in this area simply because of some are in a position where a primary modification does not reduce their mortgage payment to the extent where they will be able to avoid the loss of their home since this second mortgage problem has also created a situation where their payments even in a modified primary home loan modification will not be enough. While there were some decreases in the second lien modifications that have started, Citigroup is still one of the participants in this program may be able to offer aid when homeowners are in this particular position, but it could be a case for either fewer homeowners are looking to modify their second mortgage at the present time or it could simply be the case that some homeowners are simply not qualifying.
Homeowners should keep in mind that a primary modification will be necessary for this second lien modification may be available, but homeowners also still have options from servicers like Citigroup when it comes to getting alternative assistance programs that may be helpful on their mortgage payment. Not all homeowners qualify for these modification programs directly available from the federal Making Home Affordable Program, but we have seen continued increases in the availability of assistance, through improvements in active modification numbers. Yet, homeowners may still have to explore alternatives directly from their servicer or state housing agency if a primary modification is not enough to meet homeowners need or their financial situation has created a predicament where distress is so great that these homeowners simply cannot benefit fully from a modification on their primary mortgage but need this second home loan payment addressed as well.