Behind on Your Mortgage With Citizens Bank in Massachusetts or New Hampshire — Your Options, Explained Gently

A Quick Word About Citizens Bank

Citizens Bank is headquartered in Providence, Rhode Island, and has one of the strongest regional presences of any bank in Massachusetts and New Hampshire. With branches throughout both states — including in Lawrence, Haverhill, Andover, North Andover, Newburyport, Salem (NH), Derry, and Nashua — Citizens is a familiar institution to many homeowners in the Merrimack Valley and southern New Hampshire.

Citizens Bank's mortgage portfolio is concentrated primarily in conventional and portfolio loans. They are not as prominent in FHA or VA lending as some of the large national servicers, which means their loss mitigation process may differ somewhat from servicers with large government-backed loan portfolios. Portfolio loans — those held directly on Citizens' balance sheet — can offer more flexibility in modification discussions because the bank controls both the servicer and investor decision.

Because Citizens is a regional bank with meaningful local relationships in Massachusetts and New Hampshire, the quality of service can sometimes be more personal than at a national servicer. That said, their loss mitigation department operates within the same CFPB regulatory framework as any other servicer.

Who You Are Calling When You Call Citizens Bank

When you call Citizens Bank about a missed or late mortgage payment, you want to reach the loss mitigation department — not general customer service, and not the collections team. Loss mitigation is the department that has authority to offer forbearance, repayment plans, loan modifications, and pre-foreclosure sale options. Use those words exactly: “I need to speak with the loss mitigation department.”

Call Citizens Bank's mortgage assistance line at 800-234-6002 and ask to speak with the loss mitigation department or the home retention team. Explain that you are behind on your mortgage and need to discuss hardship options.

Citizens Bank also allows customers to visit a local branch to initiate a conversation — particularly useful if you have an established relationship with a Citizens branch in communities like Andover, North Andover, Haverhill, or Nashua, NH. The branch can help you identify the right contact within the mortgage servicing team.

For conventional loans, ask about repayment plans and loan modification options under the applicable investor guidelines (Fannie Mae or Freddie Mac if sold into the secondary market, or Citizens' proprietary program if it is a portfolio loan). Be prepared to provide income documentation, a hardship letter, and recent bank statements.

What to ask for

Tell Citizens: “I am experiencing a financial hardship and I need to be evaluated for loss mitigation options — specifically forbearance, a repayment plan, or a loan modification, depending on what I qualify for.” Write down the name of the representative, the date and time of the call, and any reference number they provide.

The Timeline With Citizens Bank in Massachusetts and New Hampshire

Regardless of your servicer, federal and state law set a framework for how quickly foreclosure can move. Here is what that looks like when your loan is with Citizens Bank:

The delinquency timeline

What happens at each stage — and what you can still do

Day 1 to Day 15 — Grace Period

Most mortgages have a 15-day grace period. A payment made within 15 days of the due date is considered on time. No late fee. Nothing reported to the credit bureaus. If you cannot pay within the grace period, call Citizens Bank now — before the late fee and before any credit reporting.

Day 16 to Day 29 — Late Fee, No Credit Hit Yet

A late fee is charged (typically 3 to 6 percent of your payment). The payment is still not reported to the credit bureaus as delinquent. Pay the past-due amount plus the late fee to bring the loan current, or call Citizens Bank's loss mitigation line to discuss options.

Day 30 — Credit Reporting Begins

At 30 days past due, Citizens Bank reports the delinquency to the credit bureaus. This is a significant moment — a 30-day late mark can lower your credit score by 90 to 110 points or more. It stays on your credit report for seven years. Acting before day 30 protects your credit. If you are past day 30, the focus shifts to stabilizing the situation.

Day 60 — Second Strike

A second 30-day delinquency is reported. Citizens Bank will typically have contacted you by phone and letter by this point. Loss mitigation conversations should be actively happening by now. If they are not, call immediately.

Day 90 — Right-to-Cure Notice (Massachusetts) / Demand Letter

In Massachusetts, the servicer must send a 90-day right-to-cure notice under Massachusetts General Laws Chapter 244, Section 35A before foreclosure steps can begin. This notice is serious — but it also means you still have 90 days. Contact a HUD-approved counselor or the MA Attorney General’s HomeCorps hotline (617-573-5333) as soon as you receive this letter. In New Hampshire, there is no equivalent right-to-cure requirement. The servicer moves toward the 120-day federal threshold.

Day 120 — Federal Foreclosure Protection Lifts

Under federal CFPB rules, Citizens Bank cannot initiate foreclosure until the loan is at least 120 days delinquent. After day 120, the formal foreclosure process can begin. In Massachusetts, this process still requires additional steps (SCRA Land Court proceeding, three weeks of newspaper publication, 14 days’ sale notice) — adding months to the timeline. In New Hampshire, the non-judicial process moves faster, with only 45 days’ notice and three weeks of newspaper publication required before the auction.

Your Options With Citizens Bank

Regardless of what stage you are at, you have options. Here is what each one means and which ones Citizens Bank typically offers:

Forbearance: A temporary pause or reduction in your monthly payments. Your servicer agrees to let you skip or reduce payments for a set period while you recover from a hardship. The missed amounts are not forgiven — you will need to address them through a repayment plan, modification, or lump sum. Ask Citizens Bank about formal and informal forbearance options.
Repayment plan: An agreement to catch up on past-due amounts by paying extra each month on top of your regular payment. Good option if your income has returned and you can handle a temporary increase. Citizens Bank can structure these over several months.
Loan modification: A permanent change to your loan terms — interest rate, loan length, or principal — to reduce your monthly payment on a lasting basis. Requires documentation of your hardship and financial situation. Takes 30 to 90 days in most cases. Citizens evaluates you under the applicable investor guidelines for your loan type.
Pre-foreclosure sale: Selling your home before the foreclosure is completed, while you still own it. If you have equity, this is often the best outcome — you protect what you have built, pay off the mortgage, and walk away with a clean start.
Short sale: When the home is worth less than you owe, you and Citizens Bank agree to sell it for less than the full loan balance, with Citizens accepting that lower amount as full payment. Requires lender approval. Takes longer than a traditional sale. Generally less damaging to credit than a completed foreclosure.
Deed in lieu of foreclosure: You voluntarily sign the home over to Citizens Bank in exchange for release from the mortgage. Avoids the public foreclosure process. Lenders typically require a short sale attempt first.

Citizens Bank offers forbearance for documented hardships, repayment plans to catch up on missed payments, and loan modifications. For portfolio loans, Citizens may have some additional flexibility in modification terms. For conventional loans sold to the secondary market, they are bound by Fannie Mae or Freddie Mac guidelines.

For homeowners who cannot retain the home, Citizens processes short sales and deeds in lieu of foreclosure. As a regional bank, their short sale department is smaller than national servicers, which can sometimes mean faster personal response — or occasionally slower, depending on staffing.

Citizens Bank does not carry a large government-backed (FHA/VA) loan portfolio, so government-specific programs like partial claims are generally not available for Citizens loans. However, their proprietary portfolio loans can sometimes be modified under terms more favorable than standard investor programs.

When a Pre-Foreclosure Sale Through Citizens Bank Makes Sense

Pre-Foreclosure Sale

If you have equity in your home and need to sell before Citizens Bank takes further steps, a pre-foreclosure sale gives you control of the outcome.

Citizens Bank's regional presence in Massachusetts and New Hampshire means their loss mitigation team has some familiarity with the local market — the Merrimack Valley, southern New Hampshire, and the North Shore. Pre-foreclosure sales with Citizens can benefit from that local context.

A pre-foreclosure sale is simply a sale that happens while you are behind on your mortgage but before the foreclosure is completed. You remain the owner. You choose the agent. You negotiate the price. If you have equity — meaning the home is worth more than you owe — you pay off Citizens Bank’s loan at closing and keep the difference.

This is often the option that preserves the most financial value and the most dignity. Families across Massachusetts and New Hampshire — in Andover, Haverhill, Newburyport, Salem (NH), Windham, and communities throughout the region — have made this choice, often with far better outcomes than they expected when they first reached out.

I am a real estate professional, not a lawyer or financial advisor. I can help you understand whether selling makes sense given your timeline and equity position, and I can guide you through the process with honesty and care. The conversation is free and carries no obligation.

When a Short Sale Through Citizens Bank Makes Sense

Short Sale

When you owe more than the home is worth, a short sale allows you to exit cleanly — with Citizens Bank’s approval — and avoid the worst of a completed foreclosure.

Short sales through Citizens Bank tend to be a more personal process than with a national servicer. The smaller volume means decisions can sometimes be made more quickly — though this varies. Having a real estate agent who communicates clearly and promptly with the lender matters in any short sale.

A short sale requires Citizens Bank’s approval because they are agreeing to accept less than the full loan balance. To be approved, you typically need: a documented hardship, a purchase offer from a ready buyer, a comparative market analysis showing the proposed price is reasonable, and financial documentation. Citizens’s loss mitigation team reviews the package and makes a decision, often in 30 to 90 days depending on the investor on your loan and the completeness of your submission.

In Massachusetts, the 90-day right-to-cure period — combined with the additional time required for the non-judicial foreclosure process — typically provides enough runway to complete a short sale before a foreclosure sale occurs. In New Hampshire, the timeline is tighter, but a short sale is still possible if you begin the process promptly and Citizens Bank agrees to postpone the auction while the sale is pending.

I want to be transparent: a short sale has potential tax implications (the forgiven debt may be treated as taxable income in some circumstances) and you should consult a tax advisor before closing. I am a real estate professional, not a tax advisor. I can guide the real estate process; a CPA or tax attorney should advise on the tax side.

Free Help You Should Know About

These resources cost you nothing. They exist precisely for situations like yours. Use them.

HUD-Approved Housing Counselors 800-569-4287 Free, impartial counseling from HUD-approved agencies. They can review your options, help you prepare for your conversation with Citizens Bank, and advocate on your behalf. Available in Massachusetts and New Hampshire.
HOPE Hotline (Homeownership Preservation Foundation) 888-995-4673 Available 24 hours a day, seven days a week. Over 170 languages. Free. Connects you with HUD-approved counselors who can help you understand your situation and prepare to talk to Citizens.
Massachusetts Attorney General’s HomeCorps 617-573-5333 Free loan modification advocacy specifically for Massachusetts borrowers. HomeCorps specialists negotiate directly with servicers on your behalf. One of the most valuable resources available to Massachusetts homeowners in distress.
NH Housing Finance Authority nhhfa.org New Hampshire’s housing finance authority provides counseling referrals and resources for homeowners in difficulty. A good first stop for New Hampshire residents before calling Citizens.
603 Legal Aid (New Hampshire) 603-224-3333 Free legal services for qualifying New Hampshire residents facing foreclosure, including help understanding your rights and, in some cases, legal representation.
Massachusetts Division of Banks (Imminent Foreclosure) 617-956-1501 If you have an auction scheduled within seven business days, call the Massachusetts Division of Banks immediately. They may be able to request a 60-day delay from your servicer on your behalf.

Frequently Asked Questions About Citizens Bank and Mortgage Hardship

What does Citizens Bank's loss mitigation department do when I fall behind?

Citizens Bank's loss mitigation department is the team within the servicer responsible for working with borrowers who are behind on their mortgage. When you call and ask for loss mitigation, you are connecting with people who have authority to discuss forbearance, repayment plans, loan modifications, short sales, and other options. They review your financial information, document your hardship, and evaluate which programs you qualify for under your loan type and investor guidelines. Their job is to find a resolution that avoids foreclosure if possible — foreclosure is expensive and time-consuming for servicers too. In Massachusetts and New Hampshire, this department is your primary point of contact for any option beyond simply making a payment.

How do I ask Citizens Bank for forbearance or a loan modification?

Call Citizens Bank at 800-234-6002 and ask to speak with the loss mitigation department. When you reach them, explain that you are experiencing a financial hardship and ask to be evaluated for forbearance or a loan modification, depending on your situation. Forbearance is appropriate if your hardship is temporary — you expect to be able to resume payments within a few months. A loan modification is appropriate if your income has changed permanently and you need a long-term adjustment to your payment terms. Have your loan number, a recent mortgage statement, documentation of your hardship, and proof of income ready before you call. The more organized you are, the more productive the conversation will be.

Can I do a pre-foreclosure sale or short sale through Citizens Bank in Massachusetts or New Hampshire?

Yes. A pre-foreclosure sale means selling your home before the foreclosure is completed — ideally while you still have equity, and before the public record of the foreclosure creates additional barriers. A short sale means the lender agrees to accept less than the full loan balance as payment in full, allowing you to sell even when you owe more than the home is worth. Both are options that Citizens Bank participates in, subject to investor guidelines and documentation requirements. In Massachusetts, the 90-day right-to-cure period typically gives you enough time to list and negotiate a sale if you act early. In New Hampshire, the timeline is shorter — non-judicial foreclosure can move to sale in as little as six months — so beginning the process promptly matters even more.

How long does Citizens Bank take before starting foreclosure in MA or NH?

Under federal law, no servicer — including Citizens Bank — can begin the foreclosure process until a borrower is more than 120 days delinquent on their mortgage. In Massachusetts, the servicer must also send a 90-day right-to-cure notice before foreclosure steps can begin, and that notice cannot be sent until you are already in default. In practice, the earliest a Massachusetts foreclosure can move to auction is roughly six to nine months from the first missed payment — and often longer due to required court proceedings and publication requirements. In New Hampshire, the non-judicial process moves faster — after the 120-day federal waiting period, the servicer needs only 45 days' notice and three weeks of newspaper publication before a sale. Acting within the first 30 to 60 days of falling behind gives you the most options in either state.

Who do I call at Citizens Bank about hardship?

Call Citizens Bank at 800-234-6002 and ask specifically for the loss mitigation department or the home retention team. Do not settle for general customer service — they handle payment questions, not hardship options. The loss mitigation team is the group with authority to discuss forbearance, repayment plans, loan modifications, and pre-foreclosure sale options. If you want guidance before calling, the HOPE Hotline is available at 888-995-4673 (24 hours a day, seven days a week) and can help you understand your options and prepare for the conversation with Citizens Bank. In Massachusetts, the Attorney General's HomeCorps hotline at 617-573-5333 provides free loan modification advocacy.

If Your Mortgage Payment Is Late With Citizens Bank in Massachusetts or New Hampshire — Here Is What to Do