Confused about how to get loan modification help so you can get back on track?  Trying to fix your unaffordable home loan? You need to get some good, unbiased information.   Citimortgage has implemented a federal program aimed at offering help to borrowers who are facing imminent default and even foreclosure. But how do you get some of that help? The first step is learn the basics about how the loan modification process works so you will have good, general understanding of your options. Unfortunately, not all borrowers will qualify for loan modification help, but you can increase your chances of success if you take the time to learn and prepare.

Read on for 7 important TIPS that will help you through the Citimortgage loan modification process:

1. You are going to have to convince your lender that it is in their best interest to grant the loan modification-you do this by proving to them that while you cannot afford the current payment, you will be able to make and sustain the new lower monthly payment.
2. Citimortgage will ask for financial statements that detail your income and expenses. This will give the bank a snapshot of your current financial situation, as well as evidence of your ability to afford the modified payment with a new family budget.
3. Now is the best time to get your finances in order-pull out all of your bills, monthly obligations like gas, food, daycare, and work out a reasonable budget.  Find out what you can realistically afford to pay monthly so you can present your lender with a clear plan which you intend to follow.  There is a standard formula that will compute your new “target Payment” under the federal plan.  You need to know if this new payment will be affordable for you or not.
4. Explain to the lender the circumstances surrounding your current financial hardship. Most lenders will take into consideration events that are out of your control when you provide them with a convincing and compelling Hardship Letter. Briefly explain the events surrounding your current situation, but don’t be too long winded.  One page is ideal, and be sure to use some of the important trigger phrases-one of these is “imminent risk of default”-know the others!
5. Be prepared to back up your story-provide your bank with proof of the hardship. For example, it you were hospitalized or suffered an illness or injury, include copies of the medical bills. If you had your hours cut at work, get a letter stating that from your employer. You are simply trying to prove to the lender that you are a responsible borrower who deserves a second chance.
6. You will need to provide copies of your current paycheck stubs, bank statements, award letters, W2′s , tax returns to verify your income.  You will also be asked to sign a 4506T form.
7. Learn federal loan modification program requirements for debt ratio. Debt ratio is the percentage of your gross monthly income that goes each month for your housing expenses.  The federal program calls for a new modified payment that equals just 31% of your monthly gross income. Once you understand how to figure your own debt ratio, you will be able to complete your paperwork properly to meet the guidelines.

Getting loan modification help is not brain surgery-but you do need to have a general knowledge of what your lender will need to see from you in order to approve your application.If you are not certain how to complete your Citimortgage loan modification application correctly or do not understand how to figure your own debt ratio, new target payment or the best way to fine tune your budget, then you may want to use a software program designed just for homeowners.  The Loan Mod Quick App software program is easy to use-just input your own monthly income and monthly expenses and all the calculations are done automatically.

You can make the decision to take control of your financial future by committing the time and effort to learning as much as you can about how the loan modification process works.  Your lender does not want to foreclose on your home-but it is up to you to make sure you are prepared and informed before you contact your lender for loan modification help-at least you will know that you have done all you can to increase your chance for success. Thousands of homeowners have gotten the help they needed-you can too!