Get informed before you apply for a Citibank loan modification-there are standard approval guidelines that you need to understand if you hope to have a good shot at getting that lower mortgage payment you need. Here are some questions and answers that will help you get started:
- How do I know if I qualify for a loan workout? Generally speaking, if you are facing a financial hardship situation, you live in the home as your primary residence and you can prove to the bank that you have enough income to pay and maintain the new modified payment, you should apply.
- What type of loan mod programs does Citibank offer homeowners? There are a couple of plans, one is the government loan workout called HAMP-this is a very good program that features lower interest rates and affordable payments. The bank also offers it’s own in-house plans, and these can vary greatly in the terms that may be offered.
- Do I have to be delinquent on my mortgage to qualify for a Citibank loan modification? Technically, the HAMP program only requires that you be at Imminent Risk of Default-this means that your financial situation proves to the bank that if you are not given relief, you will soon become delinquent. This is a mathematical formula that uses your net income, expenses and bank balances as you disclose them to the bank on your application.
- What is the application process? You need to contact the bank, tell them you are facing difficulties and that you wish to be considered for HAMP. They will ask you to complete the official application form called the RMA. This is a 3 page document that includes a breakdown of your household monthly income, expenses and bank balances. This is the information the lender will use to determine if you are a good
candidate. If you show too much or too little income, you will be turned down immediately. It is a good idea to run your own budget through the loan modification calculator to verify if you are passing, or if you need to fine tune your figures to increase your chances.
- I am self employed, what will I need to show Citibank? You will most likely have to provide 3-6 months of business bank statements, and a P & L. Your bank deposits will be used as proof of your gross income, then after expenses the net income is used as your personal income.
- How long does this loan mod process take? Once you send in the RMA and all of the required income documentation, the review process should take about 30 days. Be sure to carefully complete and sign all the required forms, and provide everything they ask for the first time, or you will have delays in getting a response.
- What if I have already applied and been turned down? Can I re-apply? Yes, you can but you must be able to provide new and updated financial information. The #1 reason for denial is due to the financial worksheet-either too much or too little income was reported. You can fine tune your budget to increase your chances of success by using the loan modification calculator-this helpful tool will automatically show you the income, expense, asset requirements and then you can re-submit your application correctly.
The Citibank loan modification process takes preparation and determination-but you can successfully modify your loan once you have the basics down. Make sure you take the time to learn and prepare before you submit your application and you will have a good chance at getting the loan mod you need and deserve.
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