Citi Office of Financial Education

Citi Office of Homeownership Preservation

OWNERSHIPPRESERVATION

Helping Strengthen Financial Foundations

3 OFFICE OF HOMEOWNERSHIP PRESERVATION3

MARIA

• Mortgage payment increase

• Missed some bill payments

• Little potential for greater income

“How did this happen?!Suddenly, ourmortgage doubled.”

4 OFFICE OF HOMEOWNERSHIP PRESERVATION4

DWAYNE

• Over-extended credit

• Shrinking home value

• Job insecurity

“I want to do anything Ican to save my home.”

5 OFFICE OF HOMEOWNERSHIP PRESERVATION5

ROBERT

• Health issues

• Debt greater than the valueof the home

• Unmanageable bills

“I need to figure out how I can give up my home without ruining my life – now and in the future.”

6 OFFICE OF HOMEOWNERSHIP PRESERVATION6

TARA

• Divorce

• Higher expenses

• Adjustable Rate Mortgage

“I wake up with a knot in my stomach. I don’t knowhow I’m going to make my next mortgage payment.”

7 OFFICE OF HOMEOWNERSHIP PRESERVATION7

HOMEOWNERSHIP ADVISORS

• Community Outreach Coordinators

• Mortgage Bankers/Brokers

• Credit Counselors

• Housing Counselors

8 OFFICE OF HOMEOWNERSHIP PRESERVATION8

Citi’s OFFICE of HOMEOWNERSHIP PRESERVATION

• Founded in July 2007

• Committed to working with community partners

• Guidance on finding the right solutions for people facing foreclosure

• Strengthening financial foundations to preserve home ownership

9 OFFICE OF HOMEOWNERSHIP PRESERVATION9

QUESTIONS COMING IN

• Is it too late to save my home?

• What are some of my options?

• Who can give me good one-on-one counseling?

• If my house goes into foreclosure, will I ever be able to own my own home again?

10 OFFICE OF HOMEOWNERSHIP PRESERVATION10

WHEN YOU LEAVE …

• What’s going on in your community and across the country

• Your personal situation — your aspirations and limitations

• Potential options and paths for addressing your situation

• Community resources to help guide you along the appropriate path

We hope you understand:

11 OFFICE OF HOMEOWNERSHIP PRESERVATION11

YOUR SITUATION

Please take some time to answer the questions on the worksheet to help determine your situation.

What are your goals?

12 OFFICE OF HOMEOWNERSHIP PRESERVATION

IMPORTANT CONCEPTS

• Foreclosure

• Adjustable Rate Mortgage

• Interest Rate

• Subprime Mortgage

• Home Devaluation

• Default/Breach

• Delinquency Cycle

• Loss Mitigation

13 OFFICE OF HOMEOWNERSHIP PRESERVATION13

COMMON DELINQUENCY CYCLE*

DA

YS

Date Due

30 Days

60Days

90 Days

Loss Mitigation: Workout Units

Foreclosure Review

Refer to Foreclosure

Foreclosure Unit

120+ Days

*Varies from state to state

14 OFFICE OF HOMEOWNERSHIP PRESERVATION14

IMPORTANT CONCEPTS

• Home Retention Capacity Intent Temporary/Manageable Hardship

• Mitigate Loss of Home Permanent Loss Expediency Relief

15 OFFICE OF HOMEOWNERSHIP PRESERVATION15

IMPORTANT CONCEPTS

• Hardship Letter

• Deferment

• Forbearance

• Repayment

• Modification

• Partial Claim

• Redemption Period

• Short Sale

• Deed in Lieu

• Marketability

16 OFFICE OF HOMEOWNERSHIP PRESERVATION16

SUGGESTIONS FOR PRESERVATION

• Contact lender

• Contact HUD-approved counselor (1.800.569.4287)

• Write a hardship letter

• Collaborate on a plan

• Practice budgeting and other habits to stick with the plan

• Continue counseling and collaboration with lenderand counselors

Be Proactive! Be Upfront and Honest!

17 OFFICE OF HOMEOWNERSHIP PRESERVATION

EXPECTATIONS FOR PRESERVATION

Modification, Re-Payment Plan, Extension, or Re-Age…

• Pay equivalent of two payments within three months

• Provide the last 2 - 3 pay stubs or the last two years’ tax returns

• Provide hardship letter

• More information may be necessary.

18 OFFICE OF HOMEOWNERSHIP PRESERVATION18

SUGGESTIONS FOR LOSS MITIGATION

• Contact lender

• Contact HUD-approved counselor (1.800.569.4287)

• Write a hardship letter

• Collaborate on a plan

• Practice budgeting and other habits to stick with the plan

• Continue counseling and collaboration with counselors

Be Proactive! Be Upfront and Honest!

19 OFFICE OF HOMEOWNERSHIP PRESERVATION

EXPECTATIONS FOR LOSS MITIGATION

Short Sale, Settlement, or Deed in Lieu

• Provide detailed information about financial status

• Provide detailed information about your hardship

• Provide authorization to speak to your real estate agent, title company, or lender on your behalf

• Provide the Listing Agreement and Real Estate Purchase Agreement

• Provide a HUD1 or Settlement Statement — obtained from the lender or real estate agent

20 OFFICE OF HOMEOWNERSHIP PRESERVATION20

CALLS TO THE OHP

• Response from professional workout specialists with many years experience

• Request authorization to review your situation

• Guidance on paths and resources to consider

21 OFFICE OF HOMEOWNERSHIP PRESERVATION21

AVOIDING SCAMS

• Prey on vulnerability

• Huge increases in scams

• Keep personal information safe from “strangers” on the phone, online, or door-to-door

• If in doubt, wait to talk with a trusted professional

22 OFFICE OF HOMEOWNERSHIP PRESERVATION22

AVOIDING SCAMS

• Calling themselves “mortgage consultants” or “foreclosure services”

• Contacting you because they learned that your home is listed for foreclosure

• Requiring a fee before providing any services to you

• Requiring a mortgage payment directly to them

• Asking you to transfer your property deed or title to them

Beware of people/companies:

23 OFFICE OF HOMEOWNERSHIP PRESERVATION

If you are seeing these representative companies you are working with us…

Citi Residential

Citi Trust Bank

Citi Home Equity

Citi Financial Mortgage

Citi Mortgage

THE COMPLETE Citi

24 OFFICE OF HOMEOWNERSHIP PRESERVATION

IMPORTANT PHONE NUMBERS

Toll-Free Assistance:

• Office of Homeownership Preservation 1.866.915.9417

• Hope Now 1.888.995.HOPE (4673)

25 OFFICE OF HOMEOWNERSHIP PRESERVATION

Questions?