| Citimortgage, servicer for Citbank has signed the | | | | insurance and homeowners dues) |
| agreements with the Treasury Department that now | | | | If so, then you should contact the lender about |
| enables them to offer the very aggressive | | | | applying for the affordable home plan. Not every |
| affordable home plan to their borrowers. The lender | | | | borrower will qualify, but if you can prove you meet |
| has been approved to accept applications from | | | | the guidelines, you may have the interest rate on |
| homeowners and will be eligible to receive incentive | | | | your loan reduced to as low as 2% for up to 40 |
| payments for each loan modified under the plan. | | | | years. The goal is to achieve an affordable and |
| What does this mean to you and how can you | | | | sustainable monthly payment that equals 31% of |
| apply? | | | | your gross monthly income. Citibank is now more |
| Citimortgage and Citibank are bound by the | | | | motivated to help borrowers, as they will be paid for |
| agreements they signed that mandate they offer | | | | each completed transaction by the Treasury |
| the federal plan to every homeowner who requests | | | | Department. In addition, successful homeowners will |
| consideration. So even if you have already applied or | | | | be paid up to $5000 for remaining current on the |
| been turned down, you may now ask to be | | | | new modified loan over the next five years. |
| reviewed for this federally subsidized program. If you | | | | This federally subsidized loan modification program |
| answer yes to these questions, you may be a good | | | | has been expanded to include second trust deeds as |
| candidate for help: | | | | well. Under the workout options, the bank will be paid |
| | | | to lower the interest rates on second loans to 1%, |
| 1. Do you live in your home as your primary | | | | and they will also receive funds to retire the debt if |
| residence? | | | | appropriate-this means that some homeowners may |
| 2. Did you get your loan before January 1, 2009? | | | | see their second liens wiped out entirely. |
| 3. Do you owe less than $729,750 on your | | | | Homeowners with second liens and who have lost a |
| mortgage? | | | | substantial amount of equity may be in a good |
| 4. Does your current monthly payment exceed 31% | | | | position for this type of loan workout. |
| of your gross monthly income? (including taxes, | | | | |