In recent months, Citigroup has developed innovative loan modification programs that help homeowners in economic stress. Citibank has noticed an increasing number of customers who default on their mortgage loans and has seen the need for some intervention. The Citibank loan modification program aims to prevent future default. However, completing a Citibank loan modification application doesn’t mean automatic approval. So before you make the modification petition, borrowers have to have a firm understanding of the terms and conditions connected with the Citibank modification process.
Essential Points about the Citibank Loan Modification Process
Is this program really beneficial for everyone? This is the most important question to ask. Anyone holding a Citibank mortgage loan can apply for modification. But borrowers who apply the right way stand a far better chance of being approved. This means submitting a complete application with all the required documentation and paperwork included. So knowing what constitutes a full and complete application is essential to getting a loan modification. Interested homeowners should also learn about Citibank’s eligibility criteria for the program.
Homeowners who live in areas where the average cost of living is skyrocketing tremendously can also petition for Citibank loan modification options. Residents of areas that are unusually high in unemployment can also apply for the Citibank loan modification program process. This is because experience shows that homeowners in a high-unemployment area are much more likely to default on their home loans.
Citibank also gives modifications to borrowers who have been laid off at work, lost a business, had a household wage earner die, lost substantial home equity, or experienced heavy medical bills or lost time at work related to injury or illness. Whatever the reason for the hardship, Citibank will verify records turned in by applicants and ask questions before the approval if necessary. So it’s very important to be able to back up hardship claims with documents.
When applying for Citibank loan modification, borrowers need to turn in other documentation of income verification and proof of regular expenditures. They also need the most recent income tax return to give Citibank officials a picture of their financial situation. Citibank modification processing can of course vary between applicants. But no matter what the outcome, each application is given thorough consideration including a possible interest rate reduction. The loan payment may be lowered to within 40% of gross monthly income. Alternately, Citibank may extend the life of the loan in order to reduce the amount of each payment. If desired, they can also forgive some of the mortgage’s principal balance.