Why must we default for mod?

[michb]

The shorter version of a very long and convoluted story is that Citi received our hardship assistance packet in early March 2009. Like everyone else I have spoken with numerous deparments and people and gotten a variety of conflicting information.

We were all set for the Home Affordable Modification and then told our inverstors "pulled out". Then many hours and calls later I got ahold of someone who got us back on track. She said she spoke with the higher ups and had to work some things out but it was back on. I pleaded for her contact info but sadly she said I could not contact her again directly but it was all in my file. I was waiting on the "documents" and instead got a call from the loss mitigation dept.(had been there several times before) 2 weeks later and was told that I was waiting for papers that would never come. Now I was told that the investors would not agree to extend the life of the loan which is apparently necessary under the MHA or HAM plan as Citi calls it. One person many calls ago said our investor was cMalt 2007 and he told me our investor is Series.

Was told that he couldn't make any promises but that he would recommend this to the investor: a traditional modification which would lower our first years interest rate to 3%. Then the second year it would step up to 4.5%. The 3rd year would be back to it's original 6.375%. This was a far cry from the lowering of our payment to 31% of our income for the life of the loan, but if it is all we can get we would gratefully take it. Until I learned that we would have to not pay our mortgage for the next 2 months even though we wouldn't know for up to a month if we were approved for the mod. I asked if I could get something in writing and he declined.

I went ahead and payed my mortgage today because I am not willing to throw our hard earned good credit score down the drain on the word of a person I will probably never be able to reach again. Nothing in writing.

Could someone help me to understand why they would ask this of anyone? They say that they TRY to have it reversed later but I've read stories to the contrary. Why would they ask someone who is doing all they can to pay their mortgage to go into default before they can be helped and with no protection? Mind boggling.

This is far from short- sorry. I would be thankful for any advice, insight...

[lal5190]

Because the "left" hand does not know what the "right" hand is doing, and they are a bunch of crooks!

CM ALT is actually under the Citi Group of companies - says so on their website. CM means Citi Mortgage. If I'm not mistaken, Citi Group IS receiving TARP funds from the government (ie: taxpayers). Meanwhile, they hide behind these CM ALT divisions (private investors) as excuses NOT to work things out - as they just did with us. Meanwhile, on our Citi Mortgage home page it state as of 6/29/09,

06/29/2009 Your mortgage assistance request has been approved. Expect your mortgage solution package within the next 5 business days.

We appreciate your patience during this time and look forward to helping you find a mortgage solution to manage your financial needs.

Mine was a normal 30-year fixed...no hocus pocus, no B.S. over the last two years, I have taken @ 60% reduction in income due to all of this crap. Now, we were told by the executive office that we have 48 hours to take the stipulated forebearance (three months to get our expenses in line - hah!!!), or they will close the file. They say I don't make enough money to cover the loan (these days, No S**t!), however, being in advertising I know it will start to loosen up, especially once THE BANKS start lending some of my clients some $$$!!!