Citigroup Loan Modification Programs
If you are in a financial situation and are seeking a loan modification from a Citigroup you have several different options to choose from. Many borrowers are in the difficult situation of owing more on their home than the home is actually worth; this all began at the start of the housing crisis. The fact that most people owe more for their home than it is actually worth makes the home almost impossible to sell (to make a profit or even break even). Now, Citigroup has decided to help the public out. They have agreed to let the courts order reductions in principal balances. What this will do is let the homeowners negotiate with their lender to reduce their monthly payment to something that reflects the new value of their home.
Up until now, Citigroup has not offered any type of loan reduction to help struggling homeowners out. Many different lenders have claimed that they will offer principal reductions as an option for a loan modification, but the reality is that no lender wants to take that loss to help out the struggling homeowner. Most loan modifications are based on lowering the borrowers’ monthly payments, but at the same time extending the amount of time that the payments will be made. This is a problem because most homeowners run into one of two problems: they either cannot afford the new payment plan or they end up paying way more than their home is worth, setting them up for a big loss.
A question that you might be asking yourself is: Who qualifies for a principal reduction? Citigroup has stated that it will be in concordance with Bankruptcy courts who issue reduced loan balances as long as it applied to mortgages that have been in affect before the passage of the act. The first main step in being qualified for this service is that the borrower would have to contact the bank to file for a loan modification before they file for bankruptcy. It is not a guarantee, but other lenders are expected to follow this trend and begin offering this service to their borrowers.
How do you start the application process?
To get started with your Citigroup Loan Application, you must first contact your lender and submit an application. This application will be the determining factor to see if you qualify or not. Now is the right time to get involved with this process because Citigroup is offering more services to help out troubles homeowners. They have realized that other loan modification processes have not made much of an impact and decided that they would offer something else to their borrowers. Another huge reason behind this change that the banks have received a large grant of money from the government and may now be more willing to let go of some money to help troubled borrowers. Seeing as how this funding is paid for by you, a tax paying citizen, it is necessary that you do not hesitate and get started as soon as possible.
How to Apply
To prepare these critical documents you can use the Complete Loan Modification Kit which provides you with
- All Required Forms
- Document templates
- Extensive how-to guide.
To learn more about the loan modification process please visit: http://www.foreclosuresmedic.com
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