Citimortgage has halted foreclosures in the majority of states across the country as allegations of improper internal procedures have been made by Attorneys General and investigations are pending. For almost a year, homeowners have been complaining about abusive practices that resulted in losing their home, but up until now those complaints have been falling on deaf ears.
Citimortgage is an authorized lender under the federal HAMP option, whereby a loan modification should be considered prior to moving any homeowner to foreclosure. However, the banks internal processing seems to be extremely unorganized, and could even be found to be negligent. Many borrowers who were told they were approved for a loan mod, were then notified that there home had been moved to foreclosure.
Since Citimortgage is stalling their foreclosures, does this mean that borrowers will be able to stay in their home indefinitely? Probably not, but it does present a unique window of opportunity for homeowners to begin pursuing a permanent loan modification again. Since the bank would rather have some payments coming in on each mortgage than absolutely nothing, they will likely be a whole lot more cooperative this time around when a borrower asks for a loan modification.
How can a Citimortgage homeowner take advantage of this new turn of events? Well, now is the optimum time to contact the bank and tell them that you want to re-apply for a loan modification. This time, however, make certain that your application is completely correctly so that you have the best chance of approval. Your financial statement, detailing your income and expenses, must be prepared so that it proves you meet the approval guidelines.
The combination of the Citimortgage suspension of foreclosures and your perfectly prepared loan modification application could be the magic formula to ensure that you get help to keep your home with a permanent loan workout. You may want to use a software program designed specifically to help borrowers complete their application correctly-just to be sure that you have the best chance of success.
Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit and The Stimulus Book-HAMP & HAFA Edition. She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies. The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a software program that mimics the federal approval triggers for loan modification. An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications. Thousands of homeowners have been helped using these materials. Visit http://www.myloanmodficationcenter.com for more information.