Homeowners with Citigroup may want to check with their lender about getting a principal reduction on their underwater mortgage. A call for assistance to underwater mortgages held by homeowners that want to stay in their home but don’t see the point has many lenders looking into principal reductions.
While some lenders are hesitant to sign on to a principal reduction and second liens can be a problem in this area as well, there are reports that big lenders like Citigroup, among others, are working with homeowners to lower principal payments.
The new initiative by the Obama Administration has called for mortgage lenders to reduce the principal for homeowners over a period of time, if the homeowner keeps their mortgage payments current.
Citigroup has stated, in the wake of Bank of America’s announcement that they are pushing forward on principal reductions, that they too offer principal reductions to homeowners.
So, if you have an underwater mortgage with Citigroup, you may want to look into what their principal forgiveness program can offer you or how this new program by the Obama Administration can help make your home more affordable.