Citi to Offer Modifications on Second Mortgages
Citi today announced its latest effort to keep families in their homes by committing to participate in 2MP, the second-lien program of the U.S. government’s Home Affordable Mortgage Program.
Citi follows in the footsteps of JPMorgan Chase, Wells Fargo, and Bank of America, all of which have already to committed to participate in 2MP.
Under 2MP, Citi can offer loan modifications that reduce payments on second mortgages for homeowners who are struggling to avoid foreclosure on underwater homes.
See full article from DailyFinance
Although it generally costs a bank more to foreclose on a house than it does for the lender to lower the mortgage payments, lenders have proven remarkably reluctant to modify many loans. As part of the Obama administration’s $75 billion foreclosure prevention program, 2MP will help homeowners avoid foreclosure by making lenders more willing to remodify.
Tags: foreclosure prevention program, loan modification
