Citi Bank Said I Qualify For Loan Modification, Can I Ask For Reduced Interest Rate?by Bob
Citi Bank has the mortgage on my home. The value of the property is about $400,000 and the balance is about $216,000. Mortgage Loan Modification Answer:by Loan Modification Expert - Dan NorthFirst hold onto the $1,000 partial payment as they will only want a full payment. Don't spend the money but hold onto it so you can make your modified payment once arranged. My firt advice is find out if your mortgage with Citi Bank is a Government owned or guaranteed loan: Is your Mortgage owned or guaranteed by Freddie Mac Is your Mortgage owned or guaranteed by Fannie Mae If you have an FHA or VA loan you most likely would know that information but if you are not sure the easiest way to find out is ask Citi Bank by calling the number on your mortgage statement. If your loan is Government owned or guaranteed they have little choice in following the Making Home Affordable Guidelines. Here Is What You Will Qualify For Under The Making Home Affordable Modification ProgramYes you do qualify for HAMP with the information you provided. A 50% reduction in income is a valid hardship. The HAMP program targets reducing your mortgage payment to 31% of your gross monthly income. Which would be $1085 with a $3500 gross monthly income. The Citi Bank will first lower the interest rate to 2% then extending the length of the loan to lower your mortgage payment to $1085. If you do not already have escrow payments for property tax and home owner's insurance that will be set up. The $1085 monthly payment will also include the escrow payment in that amount. Following the guidelines your interest rate will be 2% for 5 years then increasing 1% a year to about 5% currently. You can ask your Loss Mitigation Officer to modify the loan outside of the HAMP Program on the terms you said you wanted as above and yes Citi Bank would make more money on that arrangement. They may just approve that arrangement without doing the Making Home Affordable Program. Citi Bank may have policy on only doing HAMP Modifications so you will have to specifically ask them to not do the HAMP Program to just reduce the interest rate 1% and extend the loan to 30 years. Here Is What You Pay Reducing The Interest 1% and Extending The Loan To 30 YearsThat would make your monthly mortgage payment about $1,400 if your monthly insurance payment is $58 and monthly property tax is $166.67 your Principal and Interest payment would be $1,168.51 figuring 27 more years to pay off the loan. (I am guessing about $2,000 a year in property tax and $700 a year in home owner's insurance) To hit the $1,000 payment you will need to do the Making Home Affordable Modification Program. Even extending the loan to 40 years will only bring down the payment to about $1,200 Here is a mortgage payment calculator so you can play with numbers to see what you would have to ask for. Return to top of Citi Bank Said I Qualify For Loan Modification, Can I Ask For Reduced Interest Rate? Pre-Qualify for FasTrac Hardship Loan Modification Free pre-qualifying for FasTrac Hardship Loan Modification. No charge to find out if you qualify and what modification you qualify for. See more Mortgage Loan Modification questions and answers like - Citi Bank Said I Qualify For Loan Modification, Can I Ask For Reduced Interest Rate? Can Chase Still Foreclose While In A Trial Modification? Chase Loan Modification Agreement Increases My Payment By $1300 Where To Go From Here With PNC / National City Loan Modification Home | Mortgage Modifications | Loan Modification calculator
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