How to Stop Foreclosure With Citi Mortgage
If you're facing foreclosure on your Citibank mortgage, there are a few foreclosure alternative options that can save your home. The Obama administration created the Making Home Affordable Program (HAMP) in 2009 and followed up with the Home Affordable Foreclosure Alternatives (HAFA) program to mitigate the overwhelming number of individuals losing their homes to foreclosure. HAMP offers refinance and mortgage modification options for distressed homeowners who meet a few eligibility requirements. Homeowners who are unable to secure relief via the HAMP program are then considered for HAFA, which provides a short sale option, in which the home sells at a considerably lower price, or deed-in-lieu of foreclosure options where Citi resumes ownership of the home without foreclosure proceedings.
Other People Are Reading
Things You'll Need
- Two recent pay stubs
- Proof of Social Security, disability or unemployment income
- Quarterly or year-to-date profit/loss statement
- MHA request for modification affidavit form (RMA)
- Internal Revenue Service (IRS) Form 4506T-EZ
- List of current debts and second liens
Instructions
-
-
1
Gather financial documents such as two recent pay stubs, proof of Social Security, disability unemployment insurance income, profit/loss statements if you're self-employed, copies of your CitiMortgage statement and any other forms that list your debt and expenses. These forms are necessary to complete required documents that serve as proof of your income, which will allow Citi to determine if you are eligible for HAMP or HAFA foreclosure alternatives.
-
2
Obtain an MHA Request for Modification affidavit from the Making Home Affordable website and complete the form detailing information on your income, expenses, second liens on your home and liquid assets. Visit the Internal Revenue Service's (IRS) website and obtain a IRS Form 4506T-EZ. This form gives CitiMortgage authorization to obtain a copy of your recent tax returns (see Resources).
-
-
3
Call CitiMortgage's loss-mitigation office and communicate the problems that prevent you from making mortgage payments or may cause you to miss future payments. Include details on methods you used to prevent missing payments and share if your problem is short term or long term. Take notes during your communication with the loss mitigation servicer, including dates, times and representative's names.
-
4
Mail your MHA request for modification affidavit, IRS Form 4506T-EZ and all other necessary documentation to the loss mitigation office. Citi will calculate a Net Present Value (NPV) for your property to establish if a modified mortgage under HAMP is a viable option for the bank. Your loss-mitigation representative will contact you If Citi decides to grant a HAMP modification, and he will provide information on your modification, including a schedule of trial payments.
-
5
Request consideration for a short sale or deed-in-lieu of foreclosure agreement under HAFA within 30 days of denial for a mortgage modification under HAMP. Citi will determine if a short sale or deed-in-lieu of foreclosure agreement is beneficial in comparison to foreclosure proceedings. If Citi determines you are eligible for either option, you will receive an approval letter with further instructions.
-
1
Tips & Warnings
Understand that a mortgage modification under HAMP and short sale or deed-in-lieu of foreclosure options under HAFA still have an adverse effect on your credit rating. According to CNN Money, banks still report these options, even trial payments under HAMP, as "Not Paid as Agreed" on your credit report.
Complete all forms thoroughly and include all required documents before submitting a HAMP or HAFA request. Citi will deny any incomplete mortgage modification application.
If you receive a mortgage modification under HAMP, make all of your trial payments on time to avoid cancellation of your agreement.
References
Resources
- Photo Credit Jupiterimages/Comstock/Getty Images
