Recently Citimortgage, Citibanks servicer, have sign an agreement with the Treasury Department that allows the lender to offer aggressive and affordable home plan to homeowners who are feeling the strain of today’s economy. The lenders are being offered incentives for every borrower they approve for a loan modification or loan refinance using this new plan. Don’t understand how this may help you or even what it means?

This new federal plan must be offered to all homeowners who request consideration, because the plan was agreed upon by Citibank, Citimortgage and the U.S. Treasury Department. What this means is that if you are a homeowner and have been already turned down for a loan refinance or loan modification you can still have a chance. You can ask to have your case reviewed again and reconsidered for the federally subsidized plan.

Are you a candidate? Ask yourself. . .

1. Do you owe less than $729,750 on your mortgage?

2. Does your current monthly payment exceed 31% of your gross monthly income? (Including insurance, taxes and homeowners dues)

3. Did you get your loan before January 1, 2009?

4. Do you live in your home as your primary residence?

If the answer to any of the questions listed above is yes, you should seek out a lender and ask about the affordable home plan that is now being offered. Everyone will not be qualified for the new plan, but if you can prove that you meet the requirements it is possible to reduce the interest rate on the loan to 2% for the next 40 years. The plans primary purpose is to give struggling borrowers more affordable monthly payments. Borrowers should only be using 31% of their monthly income to repay the loan. Citibank and its servicer Citimortgage are given incentives by the Treasury Department for every borrower they approve under the new plan. Given the incentives they will be receiving the lenders are much more motivated to help people looking for loans. Once the lenders approve a homeowner for a loan refinance or loan modification, the borrower will have lower monthly payments along with lower interest rates. Along with the new loan all homeowners who stay up to date on their new loan for minimum of 5 years would get $5000 as a reward for staying current.

President Obama is encouraging both lenders and borrowers to work together to keep people in their homes for good. Before you apply for a loan modification or refinancing make sure all of your paper work is in order. Ensuring that you have all the necessary paper work ready will give you the best possible chance of being approved by a lender. Do some research regarding the loan modification process so you won’t be caught off guard and you will be ready for whatever may come your way. Learn every thing you can about loan refinancing and loan modification, don’t take any chances, make sure you can stay in your home.

-M Petrone

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