Citigroup Loan Modification Programs Helping Troubled Homeowners

Like many people, you may find that you are in a financial dilemma and are seeking a loan modification from Citigroup. Since the start of the housing crisis, many borrows are finding that selling their home is not a feasible option. Many times, they cannot make a profit, or in some cases, cannot break even, since their home loan far exceeds the actual value of their home. Citigroup has agreed to allow the courts to order reductions in the principal balances of home loans, which will allow homeowners to negotiate a new contract with their lender and reduce their monthly payment, based upon the new value of their home.

This is a new loan modification program, being offered by Citigroup, to help homeowners who are struggling to get back on the right track. While there are a number of lenders that will offer to reduce the principal of your loan, the truth is, they simply lower the monthly payment by prolonging the term of the mortgage. While this does help in the interim by allowing the homeowner a more affordable payment, it does not help the homeowner long-term, as the borrower still pays more over the years than the actual value of their home.

Do you qualify for a principal reduction? It is imperative to file your modification request prior to filing for bankruptcy. Citigroup has indicated that they will comply with the Bankruptcy courts issuance of reduced loan balances on all loans that were in affect prior to the passage of the act. Other lenders are expected to follow suit and begin offering similar modification services to their customers, although that remains unseen.

The first step, in beginning the process is to contact a representative of Citigroup and request a Loan Application. Take great care to complete the application fully and accurately, as this will be the determinant of your qualification and other loan modifications being offered have not impacted the housing crisis. With the recent Government grants to banks, Citigroup is offering more assistance to homeowners in trouble and now is the ideal time to take advantage of this opportunity.

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