Today, CitiMortgage announced a new loan modification plan that will benefit many California homeowners who are in need. This new plan will reach out to about 500,000 homeowners who have loans with the bank. Citibank expects that about 135,000 will qualify for the new loan mod program, resulting in about $20 billion in loan workouts.. The unique aspect of this plan, is that CitiGroup is going to look at modifying loans for homeowners who are not delinquent on the loan payments. Heretofore, most banks would not seriously consider a loan modification unless the borrower has missed at least one mortgage payment. The goal of the program will be attempt to modify the loan terms for homeowners who have a hardship. This will be accomplished by either extending the mortgage term, or reducing the interest rate so that the homeowners total mortgage debt is about 38% of the income.
Another unique feature of the new Citibank loan mod program, is that it will not focus on whether the borrower has a risky negative amortization loan, or adjustable rate mortgage. But will look at whether the borrower may be at risk of falling behind on their loan payments because they live in an area with high unemployment or declining home prices. The other important part of this new program, is that Citigroup will also continue to extend their foreclose moratorium practice in California and other states.
For more information about Loan Modifications in California, or to learn how a professional Loan Mod company that is Attorney based can increase your chances of acquiring a successful Loan Modification, please drop an email to our Loan Modification affiliate at: Info@CaLoanModLawyer.com
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