Author : Stephanie M Harris
In an attempt to rescue its millions of home loan borrowers from loosing their home to foreclosure Citigroup has launched, Citi mortgage loan modification program for it's borrowers. The program is called the Citi Homeowner Assistance program. Launched on November 11th,20008 the loan modification program not only seeks to help delinquent home loan borrowers who are behind in the scheduled payments, the program also attempt to proactively help the home loan borrowers who are anticipating a financial hardship that can effect their ability to pay the mortgage.
The Citi mortgage loan modification services lower the mortgage payment within an affordable reach of the borrower. The terms of modification can comprise either or all of following:
•Resetting the interest rate.
•Payment deferment for a particular period of time.
•Readjustment of the principle amount.
The eligibility criteria that borrowers must fulfill to enter the Citi mortgage modification program are:
•The loan for which modification is sought must be held and serviced by Citigroup.
•The property must be the primary residence of the borrower. The borrower will not be eligible for a Citi home mortgage modification if the property has been brought for investment purpose.
•The mortgage on which modification is sought should be the first mortgage only.
•The home owner must have a demonstrable income and evidence of financial hardship that he is facing. In other words, the home owner must be able to prove the need of modification to the lender.
•The debt to income ratio of the borrower must be more than 38% of the home owner's gross monthly income.
•The prerequisite to succeed with the Citi mortgage modification program is that the borrower should work in good faith with the lender. Any inkling of dishonesty or con can blow up all your chances of getting a modification not just once but for years to come.
Once the borrower qualifies, the process of Citi mortgage modification is as follows:
•Prepare your income and expenses statements. The proof of income should consist of 2 consecutive pay stubs, bank statements or tax returns. For expense statement collect all the bills paid or unpaid, credit card statements, insurance payments, student loans, medical bills and your utilities bill and all other expenses that you are currently or likely to incur in a month.
•Fill up the paperwork required by the bank in all earnestness. The documents have to be accompanied with a well drafted financial hardship letter.
•After the submission, the follow-up with the Citi mortgage modification department periodically to check on the status of your application form.
The Citi Mortgage loan modification program is out to help you as a home loan borrower, do not shy away from your only chance to keep your dream home to yourself.
For more information about a citi mortgage loan modification, please visit the best loan modification resource here at:: http://loan-mortgage-modification.net
Article Source: http://EzineArticles.com/?expert=Stephanie_M_Harris.
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Wednesday, December 2, 2009
Mortgage Modification Tips : How to Obtain a a Loan Modification
Author : Jason Witts
Many people facing problems with mortgage payments are not sure how to obtain a mortgage modification. They do realize that if the lender could bring down the interests a bit, and prolong the term of repayment, then the equated monthly installment payable on their mortgage would come down, making it easier for them to pay the amounts every month and also help in keeping their credit score intact. But such borrowers feel diffident to approach the lender with such requests, because they don't expect lenders to be open to such ideas.
There are many reasons for lenders to be open to their requests. For starters, any foreclosure involves a lot administrative work. Lenders incur costs for complying with these procedures. In addition, lenders also have to cough up hefty foreclosure fees. Since the process itself is lengthy, lenders lose interest for the interim period. Moreover, the real estate scenario is not very robust. Because of economic crisis, many people have lost jobs, and therefore, they can't afford to buy homes. Those who continue to be employed are never too sure when they will be thrown out. Because of this uncertainty, they are hardly likely to consider taking on any new liability. This has led to drop in real estate prices across the country. What more, this demand is unlikely to pick up anytime soon. Therefore, lender can't really be certain of time line within which the loaned amounts can be recovered. If the prices have tanked drastically, then chances are that the lender might have to settle for short sales, i.e., accept to absorb some losses. These are the reasons lenders are also willing to review any proposals that the borrower can come up with.
The borrower can start by determining how much is his/her monthly income from all sources. If the borrower has taken the mortgage to purchase a home, then he/she can consider the monthly household income. From this, the borrower needs to deduct the average monthly expenses determined from the expenses of last six months. Some of the expenses may be superfluous. The borrower can check which of these can be really avoided altogether. These can be reduced for arriving at the average monthly expenses. A nominal percentage of these can be added to the average monthly expenses as provision towards any contingencies. This total can then be deducted from the monthly income to arrive at the amount that the borrower can really spare every month towards mortgage installments. The borrower may not really be an expert in such things. So taking the help of any not for profit organization for such planning is a good idea.
After having determined how much is the maximum that can be spared to cover any equated monthly installments, the borrower needs to develop a cash flow plan such that the lender is not required to absorb any losses. If the repayment period is likely to extend much too far into future, then borrower should consider liquidating some other deposit, and bringing down the principal. Alternately, the borrower can look for alternate ways of earning, and establish a couple of month's record showing steady earnings from such new source, for example online earnings. Even these cash flows and projections can be shown to the non-profit organization for debt counseling. They will review it and let the borrower know whether or not he/she is walking on thin ice. If the borrower is confident that this phase is only temporary, then he can come up with a suggestion that all the installments that are due or will become due be added back to the principal for sometime. This increased principal can then be repaid over several years in future with interest rates applicable on specific day. Effectively, the installments in future will be higher. Similarly, the borrower can request the lender to consider changing from adjustable rate mortgage to fixed interest bearing mortgage.
At times, it may be necessary to extend the term and also reduce the interest rates. Borrower's credit score is another factor that can influence the lender's decision. If the borrower has a good credit score
, lender may consider borrower's proposal, as the lender would have greater confidence in the borrower's tendency to be honest and prompt in repayment. If the lenders find the borrower's proposal fair enough, then the lender would be agreeable to any such terms including delay in payment of EMIs, or forebearance. Therefore, knowing how to obtain a mortgage modification and what can affect such negotiations is important for every borrower who has taken any mortgage loans.
For detailed information on How to Obtain a Wells Fargo, Chase, Countrywide, or Bank of America Mortgage Loan Modification, visit MortgagemodificationTips.com.
Article Source: http://www.articlesbase.com/mortgage-articles/mortgage-modification-tips-how-to-obtain-a-a-loan-modification-1528242.html.
Read more!
Many people facing problems with mortgage payments are not sure how to obtain a mortgage modification. They do realize that if the lender could bring down the interests a bit, and prolong the term of repayment, then the equated monthly installment payable on their mortgage would come down, making it easier for them to pay the amounts every month and also help in keeping their credit score intact. But such borrowers feel diffident to approach the lender with such requests, because they don't expect lenders to be open to such ideas.
There are many reasons for lenders to be open to their requests. For starters, any foreclosure involves a lot administrative work. Lenders incur costs for complying with these procedures. In addition, lenders also have to cough up hefty foreclosure fees. Since the process itself is lengthy, lenders lose interest for the interim period. Moreover, the real estate scenario is not very robust. Because of economic crisis, many people have lost jobs, and therefore, they can't afford to buy homes. Those who continue to be employed are never too sure when they will be thrown out. Because of this uncertainty, they are hardly likely to consider taking on any new liability. This has led to drop in real estate prices across the country. What more, this demand is unlikely to pick up anytime soon. Therefore, lender can't really be certain of time line within which the loaned amounts can be recovered. If the prices have tanked drastically, then chances are that the lender might have to settle for short sales, i.e., accept to absorb some losses. These are the reasons lenders are also willing to review any proposals that the borrower can come up with.
The borrower can start by determining how much is his/her monthly income from all sources. If the borrower has taken the mortgage to purchase a home, then he/she can consider the monthly household income. From this, the borrower needs to deduct the average monthly expenses determined from the expenses of last six months. Some of the expenses may be superfluous. The borrower can check which of these can be really avoided altogether. These can be reduced for arriving at the average monthly expenses. A nominal percentage of these can be added to the average monthly expenses as provision towards any contingencies. This total can then be deducted from the monthly income to arrive at the amount that the borrower can really spare every month towards mortgage installments. The borrower may not really be an expert in such things. So taking the help of any not for profit organization for such planning is a good idea.
After having determined how much is the maximum that can be spared to cover any equated monthly installments, the borrower needs to develop a cash flow plan such that the lender is not required to absorb any losses. If the repayment period is likely to extend much too far into future, then borrower should consider liquidating some other deposit, and bringing down the principal. Alternately, the borrower can look for alternate ways of earning, and establish a couple of month's record showing steady earnings from such new source, for example online earnings. Even these cash flows and projections can be shown to the non-profit organization for debt counseling. They will review it and let the borrower know whether or not he/she is walking on thin ice. If the borrower is confident that this phase is only temporary, then he can come up with a suggestion that all the installments that are due or will become due be added back to the principal for sometime. This increased principal can then be repaid over several years in future with interest rates applicable on specific day. Effectively, the installments in future will be higher. Similarly, the borrower can request the lender to consider changing from adjustable rate mortgage to fixed interest bearing mortgage.
At times, it may be necessary to extend the term and also reduce the interest rates. Borrower's credit score is another factor that can influence the lender's decision. If the borrower has a good credit score
, lender may consider borrower's proposal, as the lender would have greater confidence in the borrower's tendency to be honest and prompt in repayment. If the lenders find the borrower's proposal fair enough, then the lender would be agreeable to any such terms including delay in payment of EMIs, or forebearance. Therefore, knowing how to obtain a mortgage modification and what can affect such negotiations is important for every borrower who has taken any mortgage loans.
For detailed information on How to Obtain a Wells Fargo, Chase, Countrywide, or Bank of America Mortgage Loan Modification, visit MortgagemodificationTips.com.
Article Source: http://www.articlesbase.com/mortgage-articles/mortgage-modification-tips-how-to-obtain-a-a-loan-modification-1528242.html.
Read more!
