According to an article in Bloomberg, Citigroup is now extendingloan modifications to all homeowners that require them. Previously, they were only extending loan modifications to homeowners that were 60 days past due.
This is great news for Florida homeowners that have Citigroup, because the loan modification process is going to go along much more easily.
Now, through the use of the citigroup plan and help from a lawyer of loan modification specialist, not only will homeowners be able to get a loan modification, but the negotiation process should be easier since homeowners now have more leverage.
If Citigroup has to do the loan mod, then it means homeowners can press for better terms like payment forgivenance and interest rate reductions.
Here is an excerpt from the article below:
Feb. 4 (Bloomberg) — Citigroup Inc., the U.S. bank forced to curb executive pay and slash stock dividends as a condition of its $346 billion bailout, now has to expand the use of a government mortgage-relief program to meet regulators’ demands.
Citigroup will use the Federal Deposit Insurance Corp.’s “mod-in-a-box” loan-modification formula any time it makes long-term changes to a mortgage, the New York-based bank said yesterday in 43-page report. Previously, such efforts were mostly limited to borrowers 60 days past due. The FDIC’s formula seeks to prevent foreclosures by reducing mortgage payments.
