CitiMortgage: Loan Modifications Increasing Delinquent Loans
According to this Forbes article, Citi's Mortgage Problem, the Home Affordable Modification Program (HAMP - the Obama Administration's Mortgage Loan Modification Program) is actually increasing the number of delinquent mortgage loans. According to the article, CitiMortgage said the Home Affordable Modification Program, which was supposed to reduce the number of foreclosures by reducing mortgage loan delinquencies, has been "ineffective at lowering delinquency levels. The bank hints that this loan modification program is actually making it tougher for the government-supported bank to manage its balance sheet." According to the article, in its 3rd quarter earnings report, CitiMortgage said that "delinquent mortgages are increasing because of HAMP. Loans in the trial modification period under the HAMP continue to remain delinquent even if the reduced payments agreed to under the program are made by the borrower. The impact of HAMP also contributed to the $2 billion sequential increase in loans 90+ days past due in the North America residential real estate lending business." According to the article, the report showed that the delinquencies of first mortgages at CitiMortgage increased from $10.2 billion in the 2nd quarter 2009 to $12.5 billion in the 3rd quarter of 2009. This represents nearly a 23% increase in the number of first mortgage delinquencies. It is clear that the number of short sales and foreclosures will continue to increase for CitiMortgage mortgage loans. Also, this information is still more proof that loan modifications will not stop the foreclosure tidal wave that is yet to come.
If you are a homeowner in Middle Tennessee who cannot pay your mortgage (due to losing your job, having your income reduced, illness, health problems, etc.), or your home is already in foreclosure, or you owe more than your home is worth, please contact me to discuss your options including loan modifications or short sales. I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I serve real estate owners, homeowners and investment property owners in Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN and Belle Meade TN. If you do need to short sell your home (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home), or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.
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