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The Citi Homeowner Assistance Program will work to proactively help potential at-risk borrowers remain current on their payments and ultimately in their homes.
The program begins November 11, 2008 and ends May 2009.
The program promotes a national toll-free telephone number:
Call Hotline – 1-866-915-9417
Citi Mortgage – 1-800-667-4243 - Press #5
Email: mortgagehelp@citi.com
Hours of operation:
Mon–Thurs: 6am–6pm PST
Fri: 6am–3pm PST
The program will preemptively reach out to a select group of 500,000 homeowners whose mortgages Citi holds; these homeowners are not currently behind on their mortgage payments, but some may require help to remain current on their mortgages.
- Citi is focusing particularly on borrowers in areas that are likely to face extreme economic distress.
- Citi extends foreclosure moratorium practice. Citi will systematically implement its practice of not initiating a foreclosure or completing a foreclosure sale on any eligible borrower where Citi owns the mortgage, the borrower is seeking to stay in the home which is his/her principal residence, is working in good faith with Citi, and has sufficient income for affordable mortgage payments.
Citi also recently streamlined its existing loan modification program, which is similar to the FDIC/IndyMac model, to aggressively rework delinquent loans. This program uses a simplified formula to determine an affordable payment as a percentage of the borrower's gross income and then reduces the monthly payment to that amount by one or more of the following: interest rate reduction, extension of term or forgiveness of principal.
A dedicated team of trained counselors in Borrower Relief Centers will preemptively reach out to customers with loans in Citi's owned portfolio, particularly in areas with falling home prices and high unemployment rates. These mortgage professionals will work to help the customers avoid entering delinquency. The process will also help protect borrowers' credit scores where they are able to remain current on their payments and ultimately keep their homes. Citi is currently seeking investor approval to include in this program the loans it services, but does not own.
A distressed homeowner could pursue participation in the Hope Now Alliance by doing the following:
- Homeowners should contact their existing lender to discuss how to qualify and their eligibility for this program
- Write a hardship letter
- Complete the necessary homeowner assistance forms. Click here for the forms.
- Work with your lender or servicer to determine an affordable workout option.
- Stick to the budget and follow the plan steps outlined by your lender or servicer.
- Keep copies of your communication and documents.
- Stay focused and continue communicating with your lender, servicer and the counselor.
Whether you decide to go with a modification, repayment plan or extension, you will need to supply the following documents to your lender or servicer:
- Hardship Letter
- Breakdown of Expense (a budget from a counselor or a completed Hardship Assistance Package)
- Proof of Income (regardless of employment status):
- 2 recent consecutive pay stubs, or
- 2 consecutive months of bank statements, or
- 2 consecutive tax returns
It is envisioned that the primary way homeowners will initially participate in Citi program is through the servicing lender (Citi) on their existing mortgage. Servicers that do not have an underwriting component to their mortgage operations will partner with an FHA-approved lender that does.
Contact your lender to determin eligibility. Some of the eligibility requirements for the Citi Homeowner Assitance Program are the following:
- Must be first mortgage and must be a loan Citi owns.
- The property must be the primary residence and owner occupied (owners may own a second home).
- The borrower is working in good faith with Citi.
- The borrower currently may not be behind on their payments but may require help to stay current.
- Current total monthly mortgage payments exceed 38% of gross monthly income.
If I can’t pay my mortgage, why should I call my mortgage lender/servicer?
Your mortgage lender can help you identify the options available to you, should you have trouble paying your mortgage.
When should I call my lender?
You should contact your lender as soon as you know you will have difficulty meeting your mortgage payments. You do not have to wait until your interest rate re-sets, nor do you have to wait until you are already behind in your payments. In fact, the sooner you call, the more options will be available to you. No matter what your situation is, CALL TODAY.
What if I don’t want to call my lender?
Call the Hope Now Hotline – 1-888-995-HOPE (4673). This hotline is staffed by HUD-approved credit counselors who can guide you through possible options.
What is a loan workout?
Either a loan modification or a repayment plan.
What is a loan modification?
A modification occurs any time any term of the original loan contract is permanently altered. This can involved a reduction in the interest rate, forgiveness of a portion of principal or extension of the maturity date of the loan.
What is a repayment plan?
A plan that allows the borrower to become current and catch up on missed payments that are appropriate to the borrower’s circumstances.
To early to tell - check back.
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