Citi refinance plus denied; over 105% ltv

[slick]

Wondering if anybody has had any success with the Affordable Refinance Plus Program while being over the 105% ltv? My situation is as follows:

Been in my house 9.5 years. Refinanced it 4 years ago with a 5 year interest only loan that will have it's first increase in June 2010. My intention was to put the house on the market around the 4th year of the loan but of course that has changed with the value of homes so I'll be staying here a while. Everything falls in line to qualify for this program except being over the 105%. First $146,000, Appraised for $126,000, LTV is at 115%, I'm around $12,000 off from being at 105%.


Citi rep I'm working with told me there would be a counter offer for me to consider; however they never gave me one. Instead I received a letter in the mail that said I don't qualify for the Refinance Program since I'm over the 105%. This doesn't seem like a risky loan to me and I don't understand why they wouldn't want to work with me.


Every time I call and leave a message I never get called back. The past couple of days I've been sending emails to the rep with some of my questions and still no response. I've never experienced such terrible customer service as I have with these people. They were quick to take my application, my $470 for fees etc, and when the numbers don't line up they never call you back to discuss any possible options.


Any advice is appreciated!

[Moe Bedard]

Unfortunately refinancing is like a white elephant these days, RARE and elusive!

The reality is that a 105% refinance loan can be risky, but the good news is that Obama just announced a new refi program up to 125% for some lucky homeowners.

I wrote about that today on my loanworkout blog.

Obama mortgage refinancing program to 125% loan to value | Loan Modification & Home Loan News

Good news to the millions of underwater homeowners who need a life raft, vest and an island to hold on to. It looks like Obama has a new refinance program that will assist borrowers with homes worth up to 125% of the current market value.
With the rapid deterioration in real estate markets all over the country, Obama’s refinance plan appears on the surface to be a good option for many underwater homeowners.

However, in places like Southern California and Las Vegas where it is common for homes to be at 200-300% of the current values, many will be left in the foreclosure waters to fend for themselves.

Maybe you can reapply with Citi or go for a loan modification?

[slick]

Hey thanks Moe, that's good news. I'll be contacting Citi and talking to them about it.