Homeowners with Citigroup are asking for principal reductions as more homeowners see a decrease in their property values or are simply struggling with an underwater mortgage. Citigroup homeowners are in the same situation as many big lenders’ homeowners in this case.
Citigroup has stated that they have been making principal reductions and their numbers in the home loan modification program have increased over the last few months, which indicates they are working on keeping homeowners in their home.
However, there is still the trouble with underwater mortgages to contend with as homeowners have cited losing a vast amount of value on their home in a short time, which have many frustrated and walking away.
Many lenders, though, are willing to make some form of principal reduction or modification where an underwater mortgage is making a homeowner’s mortgage payment difficult, but lenders are unwilling to lower a principal just because homeowners feel they may lose out on using their home to profit from a sale down the road.
Homeowners that have an underwater mortgage are being advised to contact their lender to see what options are available to them specifically to combat the problem.