Getting a loan modification from Citi Bank can be a time consuming effort, however we’re going to simplify the process through a step by step breakdown of exactly what you need to do.
First, however, a little background on Citi Mortgage and loan modification programs. A loan modification is an agreement between borrower and lender (Citi Bank) to reduce the monthly payments of the borrower to an affordable amount, allowing the borrower to keep their home, and the lender to avoid the high cost of foreclosure.
Citi is quite motivated to modify your mortgage for two reasons, first and foremost, through modification they can avoid losing significant money on selling your home as a foreclosure. Second, a good deal of pressure has been placed on Citi Mortgage recently by the Treasury Department, Congress, and the Obama Administration to help more homeowners under the Making Home Affordable Program.
Citi Bank does participate in the Making Home Affordable program, a program designed to help homeowners reduce their monthly payments to 31% of their gross income; in depth program guidelines and help on qualification for the Treasury Loan Modification Program can be found here.
Citi has a separate department, the Office of Homeownership Preservation, dedicated to helping homeowners modify their mortgages. Citi’s stance on outside help is that homeowners do not need professional or Attorney guidance in getting their mortgages modified. We beg to differ.
As of November, 2009, Citi had 100,126 homeowners in Trial Loan Modifications, however, had only granted 271 permanent loan modifications. This is a less than 1% Permanent Modification Success rate, and absolutely horrible.
Compare this with the majority of Attorney Groups, most all of which lay claim to a 90% + success rate on loan modifications for their clients.
Regardless of whether or not you need professional help, the first step in getting a loan modification from Citi Mortgage is to write a hardship letter.
Your hardship letter is your opportunity to tell Citi exactly what the financial hardship is that you are experiencing, as well as express your desire to find a plausible solution that is both in your and Citi’s best interest.
Your hardship letter should include your name, address and contact information, and loan number, as well as your purpose in contacting Citi’s Loss Mitigation Department; would you like to save your home through a loan modification, or would you rather sell it is a short-sale? In your hardship letter you should state clearly the reason for your financial difficulty, and state whether this is a permanent or short term hardship. Your hardship letter should be about one page typed, clear, concise, and to the point.
When you have completed your hardship letter, begin gathering the required documentation for a Citi Bank loan modification, which consists of W-2s, Paystubs, Tax Returns, and 2 months of bank statements. If your taxes and insurance are not escrowed into your monthly mortgage payments, you will need to document those figures, and if you are self-employed you will need to prepare a 3 month Profit and Loss statement as well.
Citi’s Office of Homeownership Preservation can be reached via phone at (866) 915-8417 Monday – Thurdsay, 6am-6pm PST and on Fridays 6am-3pm PST, however we urge you to speak to an unbiased Attorney to advise you of your legal rights prior to contacting Citi to ensure they offer you the help you are entitled to and qualify for. Additionally, it’s important and helpful to speak with a HUD Counselor regarding your mortgage; HUD can be reached at (800) 569-4287. You will need to fill out the following form to submit to Citi’s Office of Homeownership Preservation: http://www.citigroup.com/citi/citizen/community/homeownershippreservation/hardshp_pckg.pdf.
If your unsure still about the Citi Loan Modification Process, here’s another article that may clear up questions: Citi Mortgage Loan Modification. Additionally, you can complete the contact form on any page of this website, even if its just to get advice about your financial situation, and we will contact you via phone immediately.
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