Important Facts Consumers Should Know About The 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.

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 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.

This bank will also provide down payments and closing costs. However, the bank will help their troubled existing clients first before they extend assistance to other clients. Therefore, all the existing clients that are troubled will be the first ones to get the aid. They will then be followed by clients that are seeking closing or down payment assistance.

The bank will notify all eligible persons. This is after a critical evaluation to determine who will benefit from the claim and who will not. The bank will reach out to all consumers within and without the state. This is to make sure that all homeowners that are eligible and potential borrowers have received information about the relief that may be offered to them.

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.

The homeowners or consumers will be refinanced as well. They will also get assistance with their down payment costs or closing charges. This assistance will be provided to consumers at all times. Hence, homeowners and potential borrowers will get the aid they need from the bank. Also, they will no longer be afraid to lose their property.

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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