Homeowners with Citigroup may be able to get new forms of assistance for underwater mortgages as the Obama Administration recently announced expansions for the home loan modification program, which now looks to provided homeowners with principal reductions.
Lenders like Citigroup are now being asked to make principal reductions for homeowner that are looking at severely underwater mortgages, meaning they owe more on their home than it’s worth. This frustrating situation has been more common as of late and many homeowners are just choosing to walk away.
However, by paying their mortgage on time for a specific period, homeowners should see the principal balance on their mortgage begin to decrease to a more affordable amount and become more in-line with the value of their home.
Homeowners should keep in mind, though, that no lender is perfect, as we have seen in the home loan modification program. Not every homeowner looking for underwater mortgage assistance is likely to get it, but homeowners should be aware these principal reduction options are out there to be used.
Talking with your lender about principal reduction options is going to be the best option if you are experiencing an underwater mortgage problem.