I need advice...

[newdadinthecape]

Hi everyone - We currently have our first mortgage with Wachovia, and CITIMORTGAGE holds the second, a 15yr HELOC for $85K. We hired a company, back in Nov 2008 who failed miserably in trying to get anything done. We did get our $3,000 in escrow returned, but lost the $900 in app fees.

After taking over the process in March 2009, we're still waiting on Wachovia, and CITI has just offered us the following:

Extending the term from 15 to 30 years
Dropping the interest from 12% to 4%

This drops our payment from $850/mo to $436/mo

This is also based on a $137K BPO - or drive by appraisal.

When we got this loan from CapitalOne (later bought by CITIMortgage) our home appraised @ $365K (3 years ago).

Here's what I'm thinking... While the $436 payment is more affordable, they've done nothing to help with the principle.

We really need to reduce the principle, don't you think? Can we offer say, 10-20% of the balance over a shorter period of time, or do we have to offer a lump-sum payment?

We're confused, not to mention we have no idea what Wachovia will do with the first mortgage.

Any advice will be greatly appreciated!

Thank you in advance, and good luck to everyone working for/with Loansafe!

Bob

[Moe Bedard]

newdadinthecape,


Welcome to the forum and thank you for joining...............


Here is another members thread discussion on this topic that may be able to help you as well, going through the process..................
Citi Settlement

[newdadinthecape]

Thank you ***! I soooo appreciate this site and the work that all of you do. This is exactly how Americans come together in a crisis and I'm very proud to be a part of it. I'll certainly be back to post my [hopefully] success stories with both lenders and maybe even be able to help out another American in a similar situation.

Again, thanks to all of you here at Loansafe!

[kgeriak]

I need some advice too!

I don't know where I can post so I will start here.

I got a call this evening from Leslie stating I was denied a modification on my loan. Can anyone tell me why they said that. I have a pick a plan and pay minimum interest only plus my taxes. Total payments every two weeks of $1575.50. The mortgage is $501000K at 6.4%. This new house was built in 2007 on the lot next door to the small ranch that we live in now. We had planned to sell our small home and move into the other but in the summer of 2007 the market in Fairfield County CT went to hell and we were unable to sell. So we decided to rent the big house for $3100 per month. Found a terrific tenant and signed him up for 18 months and he has renewed for another 2 years. This income unfortunately does not cover all the mortgage, taxes, insurance and maintenance costs for this home. I am forced to use our income to support that property. We are self employed and have been able to cover the expenses for our home with WAMU loan of $2600.00 per month and the $3300 per month for the other house. Unfortunately our income has fallen as our clients have cut back and are no longer paying on time. That has put our AR down and the time to receive these payments way behind. We called Wachovia and spoke to them about modifying the Rental property. The loan officer said that she could do nothing for me and that if I was 30 days behind then they could help me with the MAP program. I asked her three times if she thought I should stop paying for 30 days and she said to call on July 7 and request help. I did this and the loan officer told me she needed my 2008 tax forms, Profit and Loss Statements, 3 months of business bank statements. I know the income has come down but it was still pretty good income even in this recession. Leslie from Wachovia called tonight - 10 days later - said I did not qualify - did not have enough income and to set up a short sale. I was stunned. I know I can carry that property if it is modified and don't understand why it wasn't consider more. She told me to call the loan department on Monday and discuss what I wanted to do. Very nasty and not helpful and didn't want to say anything more. What are my options? Anybody!

[flowergirl110]

Loan mod on investment home?

This post might help.