Critical Facts About Citigroup Mortgage Settlement

By Dennis Young


The agreement that this bank should compensate homeowners was agreed upon when the government realized that the bank misled consumers. This is after the bank packaged, marketed, and sold residential mortgages that were defective before the financial crisis. The bank was thus required to settle charges amounting to seven billion dollars. 2.5 billion dollars of the payments are marked as consumer relief. Therefore, homeowners will be refinanced and supported. The people that are eligible for the payments are the only ones who will benefit. Below are more facts about the Citigroup Mortgage Settlement.

Consumers that have a hard time making payments are the ones that qualify for the relief. These consumers will thus be among the group that will benefit the most from the settlements. All the borrowers that are struggling and have mortgages that are serviced by Citi will also benefit from the relief. Customers that have looked for assistance from the group before will also become assisted because Citi will have more willingness to support them.

This compensation will also make sure that all homeowners are no longer underwater. Thus, the bank will extinguish the second as well as the junior liens. Homeowners will, therefore, no longer be stressed by liens. According to the justice department, this payment will be in the form of areas. This means that the number of vacant and distressed properties and foreclosures is high.

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.

If you are qualified to get the aid, the bank will send you a notification. Citi will make sure that it has notified all clients. It will also perform a multilingual outreach. This is aimed at letting all clients know that they are eligible. Additionally, all borrowers will also be notified if they qualify for the aid that may be extended to them.

The settlement benefits that consumers get are of various forms. These include loan modifications for underwater homeowners. This means that the loan the consumers get will be higher than the value of the home in the market. Also, the principal balance that the consumers owe the bank will be reduced.

Consumers or homeowners will also be refinanced. Additionally, clients will be provided with a down payment relief whenever they need it. Also, those who need closing assistance will be assisted, as well. This will help the consumers to benefit from the services of the bank without fear of losing their homes.

No specific consumer is entitled to the agreement. This means that so many homeowners may benefit from the relief. Citi will see to it that all consumers that qualify to get the aid have obtained it. The institution will also see to it that the 2.5 US dollars commitment has been met.




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