Homeowners with Citigroup may have more options in dealing with their underwater mortgage. Many homeowners have been faced with the position of owing more on their home than it’s worth, but a new principal reduction program may provide assistance.
Homeowners, in the past, with an underwater mortgage mostly only had the home loan modification program to help them with their mortgage troubles. However, those homeowners that look at their home as an investment were angry when their home’s price began to fall and many walked away as a result.
Many people were upset over these principal reductions being offered as homeowners whose mortgage wasn’t underwater said that they were simply unfair. However, many homeowners troubled with an underwater mortgage are saying they bought a home with an inflated price, so banks should work to lower their principal for that reason.
While the principal reduction plan is part of the home loan modification program, many homeowners worry that there could be the same troubles in reducing principals as there are in making home loan modifications.
Since no lender or program is perfect there could be some hard times down the road for underwater homeowners, but homeowners with an underwater mortgage with Citigroup or any other lender for that matter may want to look into their principal reduction options.