Underwater homeowners with a Citigroup mortgage may benefit from expanded plans in the home loan modification program, which are focusing on principal reductions. Many homeowners with an underwater mortgage have obviously grown frustrated due to owing more on their home that it’s worth, but these principal reductions hope to remedy that.
Homeowners with an underwater mortgage may qualify for a principal reduction if they continue to make payments on their home for a specific period of time, during which they will see their mortgage principal reduce to an amount more in line with their home’s market value.
There have been numerous homeowners affected by an underwater mortgage and the frustration from being in such a situation has caused many to simply walk away from their home as a result.
Principal reductions aren’t popular, necessarily, but many feel that are vital to stabilizing the housing market. While not all homeowners with an underwater mortgage are going to be able to get a principal reductions, it should still be made known that this type of assistance is available.