Modify Your Home Loan Via an Affordable Program Through Citibank and Citimortgage

Homeowners who are having problems meeting their mortgage payments can get the help they need in the form of a new assistance program. This mortgage modification program, created as a partnership between the Treasure Department and Citimortage, is the servicer of Citibank's home loans. The government has created an incentive program in which it pays Citimortgage for each accepted application submitted by a homeowner looking to renegotiate their current mortgage.

Even applicants who have been turned down in the past can reapply. The agreement between Citibank, Citimortgage and the Treasury requires that all homeowners who apply for loan modification must be offered this plan, as outlined by the guidelines and subsidies of the federal government. See the questions below. Any "Yes" answer means possible qualification:

1. Is the mortgage for a home you currently live in and is it considered your main residence?

2. Was the home loan taken out before January 1, 2009?

3. Is the balance on the mortgage less than $729,750?

4. Is the payment on the mortgage more than 31% of your monthly, pre-tax, income? (Dues for homeowner associations, taxes and homeowner's insurance are included in this calculation).

A "Yes" answer to even one of the above questions means you may be eligible and should contact the bank which currently carries your home loan. These questions can help your lender decide if you meet the guideline qualifications, which can reduce the rate of interest of your existing loan to 2% for up to 40 years. This new rate meets the program's main purpose-helping homeowners stay in their homes by providing a payment plan which is less than or equal to 31% of their monthly pre-tax income. Citibank receives payments from the US Treasury for every transaction of this program that is completed, which is a huge motivation to the bank. The other option available is as much as $5,000 payment to homeowners for making consistent current payments on the new loan for a period of five years.

Prepare carefully prior to calling Citibank, or sending in the application. Be sure you understand the application completely and have the needed information to substantiate your request. This preparation time can make all the difference and speed the application process.

For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: Mortgage Modification Loan