People that have a mortgage with Citigroup are just one of the many sets of struggling homeowners that are looking for assistance with their underwater mortgage. While Citigroup has stated that are using principal reductions to bring aid to homeowners, the extent to which they have done so remains to be seen.
Also, there are many lenders that are unwilling to use principal reductions as a wide solution for underwater homeowners. Many homeowners that are underwater in their mortgage may still be able to afford their mortgage payment, but these homeowners are crying out for principal reductions as well.
Lenders believe that giving homeowners a principal reduction for the simple fact that a homeowner can’t make a profit from the sale of an underwater home is something that isn’t fair to other homeowners and it’s simply unfair to the lender since a homeowner signed a mortgage agreement to pay a certain amount for a home.
However, there is still the problem of underwater mortgages, but lenders are offering aid outside of principal reductions. While this assistance may vary from lender to lender, it is advised that homeowners should talk with their mortgage lender about available options for underwater mortgage assistance.