How to Get CitiBank Foreclosure Help

If you're a CitiBank customer, in trouble making your mortgage payments, don't freeze up in despair, put your head in the sand or worry yourself sick that you're going to lose your home. The most important thing you can do is contact CitiBank -- and quickly. Lenders like CitiBank say they want to give their borrowers assistance and advice so, forget your embarrassment and despair, and get on the phone to your bank. Each lender and bank has a different policy when it comes to helping its borrowers and if you're a CitiBank customer this is what you can expect by way of assistance from them.

Difficulty: Moderate

Instructions

1. CitiBank says borrowers at risk of missing a payment should contact the bank at one of the following numbers:
   CitiMortgage: [phone].
   Citi Residential Lending: [phone] or [phone].

2. CitiBank says it has a good track record helping distressed borrowers.
   "Overall, in the fourth quarter of 2007, borrowers serviced by Citi who received extensions, modifications, reinstatements or repayment plans outnumbered those who were foreclosed by almost five to one," the bank says.

3. CitiBank says that for those who make the call it can offer a number of possible solutions.
   According to the bank, its loss mitigation efforts fall into two major categories:
   a. Those with outcomes that lead to home retention, such as loan extensions, modifications, repayment plans and reinstatements.
   b. Those with outcomes that result in the homeowner surrendering possession of the home without foreclosure, such as short sales and deeds in lieu of foreclosure.

4. CitiBank Modification Agreement.
   The bank explains that this is typically used when the customer has a significant reduction of income that impacts his or her ability to pay and will last past the foreseeable future.
   "Typically, the customer's loan terms are modified in order to resolve the mortgage delinquency," the bank says. "This agreement makes the mortgage more affordable for the customer."

5. The CitiBank Repayment Plan option.
   This is a written agreement between the borrower and CitiBank to implement a payment moratorium due to unforeseen circumstances wherein the property or employment status is affected. At the expiration of the term, the customer pays the total arrearage in a lump sum payment or elects a further repayment plan.
   "This agreement is typically used when a customer has a short-term reduction of income that severely impacts his or her ability to pay for a short period of time," the bank says.
   "The repayment plan brings the customer current over time as the payment obligations are met. It can also include a repayment plan under which the customer pays the regular monthly payment and an additional amount each month to catch up delinquent payments over time."

6. Some borrowers will want to abandon their properties and make a fresh start. One of the options that may be available to them from CitiBank is the Short Sale.
   This option is most useful when the homeowner does not have either the desire or ability to keep the property and is willing to sell it to pay off the debt.
   "This option is utilized when the amount owed less acceptable closing costs to sell the property is more than the value of the property," CitiBank says.

7. Another option for those who want to put a bad home-owning experience behind them is the "Deed in lieu of foreclosure."
   According to CitiBank this, "occurs when the customer does not have either the desire or the ability to keep the property and is unable or unwilling to sell the property but is willing to sign the property over to Citi in exchange for stopping the foreclosure action."
   Deeds in lieu of foreclosure are generally accepted only after all other options have been exhausted.

8. Another possible option from CitiBank is called "Extension."
   This is used when the borrower has experienced a temporary hardship and is unable to bring the loan current.
   "The customer has the ability to continue making future payments, but does not have the funds to completely reinstate the loan," CitiBank says. "An extension may re-amortize the loan or defer the interest to the back of the loan. It brings the customer's account current immediately."
   The bank adds that an extension is generally used in the early stages of delinquency when a customer is one or two payments behind. It warns that borrowers should not expect it to be available to them if they are seriously delinquent with their payments -- more than 90 days past due or in the foreclosure process.

9. Another possibility, the "Reinstatement" option, is used CitiBank says when a customer that is 90-plus days past due is able to pay all of the delinquent fees, interest and principal owed to the bank with a single payment.
   "This brings the customer's account current immediately and allows him or her to continue to pay off the loan according to the original amortization schedule," CitiBank says.

10. CitiBanks says it supports foreclosure prevention and backs education and counseling programs sponsored by national and local counseling agencies, including Reform Now (ACORN), Neighborhood Assistance Corp. of America (NACA), Consumer Credit Counseling Service (CCCS), Consumer Counseling Resource Center (CCRC) and other community-based organizations.

Tips & Warnings

• Keep the number of a Dept. of Housing and Urban Development (HUD) approved counseling agency handy since they offer many free services that could help you. Call [phone] or TDD [phone] for the housing counseling agency nearest you.
• NeighborWorks America is a great place to bounce ideas off non biased credit counselors (link below)
• Make sure any credit counselors you talk to work for a HUD-approved organization.
• Beware of anyone who offers to buy your home offering to "help" you buy it back later.
• Avoid offers of mortgage help that require a payment for counseling and other help.
• Don't sell your home without first talking to your lender.
• Bankruptcy is a last resort when dealing with your financial problems because it will damage your credit record for at least seven years.

Resources

• CitiBank website
• HUD
• NeighborWorks America
• HopeNow

[illdebt]

on 10/31/2008 Does anyone know why jennie mortgage is ineligible for all the programs mentioned in the article with the exception of moratorium and foreclosure?

[illdebt]

on 10/31/2008 was not eligible for any other adjustment. Now I am faced with a grace period of two months but I still must pay the total amount due plus all the late fees which is over eight thousands two hundred dollars by the end of the second month. Citibank's proposal just postpone the inevitable. I am still in the same financial predicament. I will not be able to come up with the payment since there was no adjustment in the amount of debt owed and the time to repay it.

[illdebt]

on 10/31/2008 Although i have been managing to pay my mortgage at the end of the month with the previous months fund, I have not been able to catch up in my mortgage payments. I have incurred over a thousand dollars in late fees. My husband works but i am retired and on a fixed income. There were various unforeseen medical and school expenses that placed me behind financially. I have no savings and support my family on a weekly basis. I requested citibank to give me a two month grace period and add the the total amount due to the end of my mortgage life. This would have afforded me time to catch up with my debts and resume my normal payments within the two months. I was told that since i had a jennie loan i was ineligible for the option i had requested. There were a few terms that arose in the conversation but the ones that were presented were foreclosure and a moratorium since the jennie mortgag

[iamageniuster]

on 10/27/2008 Awesome tips. 5 stars yo.

[Sondrac]

on 8/4/2008 Very helpful information. I shall file this in my whatif Files.