What's your feedback - CitiMortgage Mod Offer???

[Ladyck1]

Just looking for some additional feedback...posted in the Loan Modifcation section yesterday....

I am so glad I found this site, I really need to vent so that I can keep my composure when I speak to the CitiMortgage reps (I am sure they are just doing their job and trying to remain as profitable as possible).

Here is our story....we started the loan mod process in December 08. My file has been in the hands of 3 reps now. I sent a letter after the 2nd rep made me an offer to reduce our rate from 6.65 to 5.75 asking what other options were available to get us into a lower payment, never received a response.

When I called in about a month later, I was told the file had been re-assigned. I called that rep 3 times and she called back about 2 weeks ago and left a message. Next thing I knew we got a package in the mail with the same terms and the payment had only been reduced by $80 or $90 at most.

What options do we have? I am really looking for some tips and help on how to go back to Citi to request additional assistance in getting a lower monthly payment. Right now we are at $1973.xx, I was hoping for no more than $1600. Is this unrealistic?

And then I saw a $750 loan mod fee that we are being assessed...aren't the lenders getting government dollars for each load that is being modified?

I've read a lot on the website about principal and interest being forgiven - the principal balance is no doubt below current market value by $40K to $50K - is there any recourse we have there?

[Moe Bedard]

Thanks for sharing this with the forum. I wrote a great blog post on this and I'll post the main parts here to help you and other members.

Here is my answer to someone else and it is what I would say to you too!!

My answer:

Hello Cordie and thanks for the email!

This looks like a great offer. If you can afford this modification long term, then I advise you might want to accept it. As far as the $500 modification fee, many mortgage servicers do have these fees added in to handle their costs associated with processing your loan modification.

What upsets me is the fact that they get an additional $1500 from the US government and they still have their hands our for more money from homeowners. But I am not surprised to say the least.

By all means, you can counter this offer and do not have to take it. I have seen some people get better offers by doing this. I have also witnessed homeowners who countered the offer on the table, as the current offer expired, only to never receive another loan modification. Sadly, they ended up losing their homes.
If you counter or deny this offer, you run the risk of losing it and maybe all offers in the future. But do not take an unaffordable loan modification because you feel pressured to accept it. If you can’t afford it, then fight for better!

Loan modifications are what the industry calls a privilege and are not mandatory. You being an American, you have the right to choose what is best for you and your life.

With that being said, lets end this with an old country song by the great singer Kenny Rogers, “You gotta know when to hold em, know when to fold em, know when to walk away, know when to run!”

I wish you the best in all you do and choose!