Essential Facts About Citigroup Mortgage Settlement

By Dennis Young

The bank agreed to provide relief to affected consumers once the federal government realized that the bank had misled consumers. This bank was charged for packaging, marketing, and selling defective residential mortgages way before the financial downtime. For this reason, the bank was asked to settle a payment of 7 billion dollars. From the 7 billion dollars, a portion amounting to 2.5 US billion dollars was set aside for consumer relief. This relief was meant to refinance and support consumers. To get more information about the Citigroup Mortgage Settlement, read the article below.

The consumers that have not been able to pay up their mortgages are among the eligible persons to get the aid. These homeowners will, therefore, benefit a great deal from the mortgage. Borrowers that are also having a hard time with the mortgage payments may become beneficiaries of the aid. Also, Citi will be ready to work with any client that did not get any assistance previously.

This relief will ensure that no homeowner will be underwater. Therefore, all the second and junior liens will be extinguished. Thus, homeowners will thus be relieved of the stress that may be caused by claims. The relief provided will be in areas. This means that there are a high number of distressed or vacant properties as well as foreclosures. This is according to the department of justice.

The bank will also offer closing and down payment assistance. Nevertheless, priority will be given to the existing clients of the bank that are troubled. Hence, as much as closing or down payment assistance will be provided, the first people to get assistance are the existing clients. After that, other clients will be assisted.

To know whether you are eligible for the aid, the bank will notify you. Citi will thus engage in a broad-ranging outreach. This will include multilingual outreach to make sure that all eligible homeowners, as well as potential borrowers, get the information concerning the relief they may get. This information is outlined in the documents obtained from the department of justice. The bank will evaluate its consumers to check who is eligible.

Consumers get benefits in various ways. One of the ways that underwater consumers will benefit is that they will get modifications for the loans. Therefore, it will be possible to get a higher loan compared to the current market value of homes. The principal balance of consumers will also be reduced. Hence, borrowers will not pay high interest for loans.

All consumers will be refinanced. Also, these clients will receive down payment assistance. In case some customers need help with closing costs, they will also be assisted. The bank will assist homeowners and potential borrowers in all ways possible. Clients will thus have faith in the bank as they will not lose their homes.

The agreement is not entitled to any specific consumer. Therefore, many homeowners may become beneficiaries of the relief. The bank will make sure that all eligible consumers have obtained relief. The bank will also make sure that it has assisted consumers so that it can meet the 2.5 billion dollars it committed itself to.

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