In the past there was no hope for Citibank borrowers who needed a loan modification. After the introduction of a new government program, Citibank is now willing to work with its customers.

It was almost impossible to get a home loan modification at Citibank until recently. A homeowner who had a mortgage with Citibank who could not meet their obligations had no choice except foreclosure. Now, due to new incentives offered to lenders who participate in a government program, they are willing to work with homeowners to help them keep their homes.

Citibank will now be able to help about half a million homeowners. Unlike some other banks, they are negotiating with homeowners who are facing foreclosure as well as homeowners whose credit score is falling or who are experiencing hardship due to trouble financial times.

In addition to offering assistance to a broader range of homeowners, Citibank has made the process of applying or getting information easier. No longer will homeowners have to pay telephone tag with many lenders who, in the end, are not willing to help them.

With a Citibank mortgage modification involves a reduction in interest rates, a longer mortgage term of up to 30 years and deferred principal. The almost guaranteed deference of principal is great for homeowners who have had their property values drop.

As with any program, the homeowner should find out exactly what Citibank's requirements are. Even though they are earning a reputation as one of the country's easiest lender to work with, they have strict guidelines than must be followed. Phoning the loan department or doing an online search can locate this information.

Citibank will look at your credit, any bankruptcies, the value of the property, the debt to income ratio and any late mortgage payments in order to decide if a borrower qualifies for a modification. They are lenient regarding late mortgage payments. Late payments are not a requirement, but it does help the cause. A perfect credit score is not required as Citibank is willing to work with homeowners who have failing credit scores.

A homeowner will need to fill out an application and submit a hardship letter outlining the reasons for needing a loan modification in order to begin the process. Both the application and the letter are important and vital parts of the process. Even though Citibank is more lenient than its competitors, homeowners must still follow the same process in order to receive a modification.