CitiMortgage Offers Assistance to Avoid Foreclosure

If you are a cash-strapped homeowner with a loan from CitiMortgage, there may be help on the horizon for you. As more and more homeowners are trying to modify the terms of their loans in an attempt to avoid foreclosure, CitiMortgage announced a plan last week that may help.

Under CitiMortgage’s new plan, dubbed the Homeowner Unemployment Assist program, some homeowners will be able to reduce their monthly mortgage payment to about $500 a month. To qualify, you must meet the following basic criteria: 1) You must be unemployed; 2) The primary mortgage on your home must be both owned by and serviced by CitiMortgage; and 3) The home must be your primary residence. In order to determine what other criteria may apply in your situation, you or your attorney should call CitiMortgage to discuss the possibility of a loan modification with them. You may be eligible for assistance, even if you have not made a mortgage payment for the last two months.

If you meet CitiMortgage’s criteria, they will put you on the reduced payment plan for three months. If you find a job in that time, you will have to go back to paying your original mortgage amount, or, depending on your set of circumstances, you may be able to work out another solution with the bank to reduce your monthly payments. If you don’t find a job in three months, you will have to contact the bank again to try to modify your loan so that you can afford it long-term or at least until you find another job.

If you do not have a CitiMortgage loan but need assistance to avoid foreclosure with another bank, you should consider looking into a loan modification. By changing the terms of your loan, you may be able to afford your payments and keep your home. For more information on loan modifications, click here.