Mortgage modification, or loan modification, is a method that many homeowners are turning to in order to put an end to the worry of losing their homes to foreclosure due to the inability to pay their lender or make their monthly mortgage payments.
If you hold a mortgage through Citi Mortgage, you can participate in the different programs that can allow you to refinance your home, or for those homeowners who do not have sufficient credit scores to do so, modify the terms of your existing mortgage.
Modification of mortgage loans is a way to avoid taking out a new loan - you will simply have the terms of your existing loan modified in order to get a more affordable payment and a reduced interest rate.
Do You Need A Citi Mortgage Modification Loan? To determine if you need a modification of your existing mortgage, determine your debt to income ratio.
If your mortgage payment and related property taxes and homeowner dues is more than 31% of your gross income (before taxes) then you likely could benefit from the reduced monthly payment amount that you can get when you modify your existing mortgage loan.
Communicating With The Lender The most important part of modification of your mortgage is to communicate with your lender directly.
You do not need an attorney to do this for you, or a third party company.
You can contact the lender yourself; you will find that the lender is more than happy to provide you with information that can lead you to modifying the terms of your mortgage in order to end the worry of foreclosure.
The lender does not charge for the information that they share regarding your options.
If you are behind on your mortgage loan payments and try to avoid the lender, the lender cannot help you.
Be Patient With The Lender During Modification As you might imagine, you are not the only homeowner who has been affected with the subprime lending crisis and the economic decline that has followed.
There are a large number of homeowners who need help, which means that you might not get to start the process of mortgage loan modification right away.
Speeding The Process Along When you have decided that mortgage modification is right for you, you can help to speed along the process of modification of your loan by having everything ready that the lender will need.
First and foremost, you will need to prove your hardship, and fill out an affidavit of hardship in order to begin the modification process.
This can be an official statement of what caused you to fall into dire financial straits, such as a job loss or layoff, or an illness that prevented you from working.
You should also be prepared to provide the lender with pertinent details about your income, including income statements for all income sources, including wages and investment income, paystubs, and other documents that help to paint a picture of the amount of money that you have coming in.
This will help the lender to determine your debt ratio, which is a figure of how much of your income is being consumed by your mortgage loan payment.
You must also be willing to state that the home mortgage loan is for your primary residence, and that it is not an investment property, vacation home, or other secondary home.
In other words, you must live in the home that you want to modify the mortgage on.