House Plans

Citimortgage, servicer for Citbank has signed the agreements with the Treasury Department that now enables them to offer the very aggressive affordable home plan to their borrowers. The lender has been approved to accept applications from homeowners and will be eligible to receive incentive payments for each loan modified under the plan. What does this mean to you and how can you apply?

Citimortgage and Citibank are bound by the agreements they signed that mandate they offer the federal plan to every homeowner who requests consideration. So even if you have already applied or been turned down, you may now ask to be reviewed for this federally subsidized program. If you answer yes to these questions, you may be a good candidate for help:

1. Do you live in your home as your primary residence?
2. Did you get your loan before January 1, 2009?
3. Do you owe less than $729,750 on your mortgage?
4. Does your current monthly payment exceed 31% of your gross monthly income? (including taxes, insurance and homeowners dues)

If so, then you should contact the lender about applying for the affordable home plan. Not every borrower will qualify, but if you can prove you meet the guidelines, you may have the interest rate on your loan reduced to as low as 2% for up to 40 years. The goal is to achieve an affordable and sustainable monthly payment that equals 31% of your gross monthly income. Citibank is now more motivated to help borrowers, as they will be paid for each completed transaction by the Treasury Department. In addition, successful homeowners will be paid up to $5000 for remaining current on the new modified loan over the next five years.

This federally subsidized loan modification program has been expanded to include second trust deeds as well.  Under the workout options, the bank will be paid to lower the interest rates on second loans to 1%, and they will also receive funds to retire the debt if appropriate-this means that some homeowners may see their second liens wiped out entirely.  Homeowners with second liens and who have lost a substantial amount of equity may be in a good position for this type of loan workout.

President Obama is encouraging homeowners to work directly with the bank, but before you contact Citibank or send in your application, make sure you have the upfront information you need to ensure the best chance of success. Taking an hour of your time now to learn a little bit about the process will pay off when you begin the loan modification process with Citibank. Your success could depend on it-so don’t take any chances.