Do you have a Citimortgage home loan that you are having trouble paying? Homeowners who are falling behind on their mortgage and cannot refinance due to a loss of equity may be able to take advantage a new expansion to the government loan modification plan called HAMP. This loan workout program has been expanded to include a new option that participating lenders can utilize for those borrowers who owe more than their home is worth.
Citimortgage offers the HAMP federal loan modification plan and will also be offering the new principal reduction option called PRA. This stands for Principal Reduction Alternative and is a method of lowering the principal balance on qualifying loans so that it more closely matches the home’s current market value.
This is good news for those homeowners who have lost equity in their homes due to the housing meltdown. Across the nation, over $2 trillion dollars in equity has been lost since the housing crisis began. Many homeowners are just walking away from their underwater mortgages because they can no longer afford to make the payments on a home that has no value. The government realized this problem and that is why they have expanded HAMP with the PRA option.
A Citimortgage loan modification that includes principle reduction will be considered for those borrowers who can pass the eligibility requirements. The lender will have to review the borrowers application and will consider the cost of modifying the loan as opposed to foreclosure. If it is more cost effective to modify the loan and lower the loan balance, then the PRA option may be offered. The most important criteria will be the current loan balance in relation to the home’s current market value.
Citimortgage has agreed to review every borrower who requests consideration for HAMP-in fact they are under contract with the Treasury Department to do so. Borrowers who want to pursue a loan modification need to prepare and submit their application to the bank for review. Of course it is critical that the forms be completed properly so that they will pass the approval guidelines. Homeowners can get help with this by using a software program designed specifically to do all of the important calculations and will give applicants the inside edge to approval.
A Citimortgage loan modification that offers a low affordable payment along with a lower loan balance could be the answer to making home ownership affordable again. Make sure that the application is completed properly so 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.