Homeowners seeking help with unaffordable mortgages may be getting some much needed good news with a new Citigroup loan modification announcement.  Over $2 trillion dollars have been lost in home equity - resulting in many borrowers owing more on their mortgage than their home is worth.  This makes refinancing almost impossible and selling a challenge as too.  Well, for the first time since the housing crisis began, a major lender has agreed that courts should be allowed to order reductions in principal for troubled homeowners who owe more than their home is worth during a bankrupcty proceeding.

Citigroup loan modification programs have up until now not offered any reduction in principal balance and the lender represented the strong resistance by all lenders to voluntarily reduce the amount a homeowner owes on their loan, regardless of the loss of equity.  Although many lenders announced they would offer some principal reductions, the reality has been that borrowers have not been offered that option on a loan modification.  Now that Citigroup has indicated acceptance of this option, other major lenders are expected to follow suit.

This new option for a Citigroup loan modification is deemed necessary to stem the rapid rise in foreclosures, which has quadrupled since the fall of 2007, potentially affecting 8 million homeowners across the country.  Lenders have been offering loan modification programs based on other means of reducing the monthly payments, including extending the loan term and lowering the interest rate.  However, indications are that many borrowers run into trouble again, because their payments remained too high after the loan modification or because the homes had lost so much value that it was not realistic to continue making payments on an inflated value.

Citigroup stated that it would support legislation giving Bankrupcty courts the power to reduce loan balances provided it applied to mortgages in effect only prior to passage of the act.  To be eligible, borrowers would have to contact their lenders to try to work things out before filing bankruptcy.

If you need help with a Citigroup loan modification, now is the time to get informed and be prepared to submit your application to begin the loan modification process.  Citigroup is now willing to offer much more aggressive loan modification programs to qualified borrowers because they acknowledge that previous efforts have failed to stop the rise in foreclosures.  The bank also has received an influx of capital as part of the government’s economic rescue plan and may be in a better position to start offering meaningful help to desperate homeowners.  Interested borrowers should act now to get their loan modification application into the lender, as their is expected to be a huge demand for this assistance.

Get started today and get the help you need to understand the Citigroup loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com