New to site; Citi said I do not qualify for making home afordable

[timshar2]

Hi,
Thanks for this site. I guess I will put all my info out there and see what people think as to how I should procede.

I have a 1st mortgage with Citimortgage, $209,000, 2nd mortgage with Irwin 112,000. I am seperated from my wife recently (within the last year) so I only have my salary $8400/month. Apparently they use 31% off of gross income to determin eligibility. The 1st 2 people that took my information had said they would take my 2nd mortgage off of the 31% figure so my new mortgage would be $1400 for 5 years then they would review it after 5 years. They however had to pass it along to a counselor that would get me the final papers. Now, Each tiime I call I get a different answer. Their final word yesterday is that 31% is 2600 so that should be enough to cover my 1st mortgage. Yesterday I called 2x and both people on the phone gave me the same final answer. They said they would however put the paperwork through for a traditional modification but they doubted that would work. They also said they are now moving forward with the foreclosure. I received my ACT91 notice on 4/11 and did send paperwork into Pennsylvania Housing Finance??? for a HEMAP pogram but they have not made a decision.

Other info: my monthly right now is $2100 to citi, $1200 to Irwin (the 2nd which I have not paid for almost a year since my seperation started). My take home because of medical etc is 5003/month. I am about $700/per month off for my bills etc to make this all work out. But even at that that
means I would just be able to pay everything which is fine. Cit said the home appraises for 237,000 so a short sale will pay them.

So I guess my question are: Has anyone hired a lawyer (which I really do not have money for), that Citi would take seriously and would doing so somehow stall the foreclosure while we try to make a modification?
Does anyone know if they consider a 2nd mortgage in the making homes affordable program? Does Citi really know the program? HAs anyone offerered their 2nd a payoff in this situation (empty my 401k and pay them??/)?

The final rep I spoke to told me to shortsale my home or sugggested I empty my 401K to get current. I asked if they ever reconsider or look at the making home afordable program and they told me they cannot help me period.

I am at my wits end with this. I tried to get a lawyer locally and thier site said they were AAA rated at the Better Business Bureau. Which I checked and they were rated as the top level on the BBB. They then gave me their best lawyer to talk to about Mortgage modifications and when I researched them on the net I found out they had thier license suspended in florida 2x and that numerous people had suits against them for fraud. So I am leary of hiring any lawyer that would just take more $$$ that I do not have prolonging this any more.

I have not tried the citi phone number on this site yet as I just found the site yesterday. I will try that Monday.

I live in my home with my 2 daughters, 1 that has a disablitly so she will always be with me and one that is in 11th grade. I know the Sherriff's showing up is just around the corer and I work all the time so I know my kids are going to have to see that and I am guessing I will have to make
some decision soon. But I do not feel I have all the info I need now.

Thanks to anyone that comments...

[faith]

Welcome to this forum
I found the information below in one of the success stories about Citi which is now AHMSI

Guidelines for the modification, payment and the gross income criteria, eligibility

http://www.treas.gov/press/releases/...guidelines.pdf >>

Making Home Affordable - Home Affordable Modifications

Write a hardship letter and fax it to the contacts below
Make sure your hardship letter explain in your letter the hardship and the circumstances that caused it. Explain what steps have been taken to correct the situation. Provide the lender with your plan to get back on track and stay there. Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home. Fax your hardship letter by itself, to both Jeanne and Jim's office and follow up with a call, someone out of their office should respond back within 48-72 hours.

Jeanne Drake VP Home Retention
PH 1 949 784 6011
FAX 1 866 642 4196

Jim Davis
PH 1 904 996 9696
FAX 1 904 996 1727

You can also read success stories about Citi or AHMSI just click the link below.
Success Stories - Homeowners Who Fought Back & Won - Loan Modification Forum - LoanSafe.org


God bless,

[faith]

P.S.
I applauded you for checking the lawyers license by checking at State BAR Association. BBB does not include the complaints and license of a lawyer, but the BAR Association does which I found out 10 years late on my civil case regarding the lawyer that I hired way back then.

I am sorry to hear about your daughter. I hope and pray that everything will turn out for your good and your family.

Have you tried contacting NACA and see if they can help, the link of success stories provided in the previous post will give you a lot of info regarding NACA and Citi/AHMSI. Please do not touch your 401k, do not put your good money into bad. Creditors can not touch your 401k, pensions and retirements.

The 2nd mortgage might foreclose however they will not gain anything if they foreclose your home because foreclosure is a very expinsive process and there's no sense of foreclosing if there is no equity in that house that you have. The only way the second mortgage can foreclose is if they buy out the first mortgage. Actually, if the second, and not the first mortgage foreclose, THE ONE ACTION RULE says they cannot sue you for any deficiency or shortfall after the foreclosure. The first mortgage will be paid in full, and the 2nd may get something or nothing.

You may ask your lender to approve a Short Sale, and ask them to put in writing that they will not pursue any deficiency judgment against you. And if you have a purchase money mortgage and never refinanced, once your house foreclosed or sold, the lenders can not pursue you for any deficiency judgement according to California Section 580b. You can also find information in the link provided about seller Short Sale success stories.

Peace be with you.

[timshar2]

Thanks so very much. I will look into everything you mentioned. I have learned more in the last few days on this site then during the last 6 months working with Citi.

[SillyWorld]

Originally Posted by timshar2

Thanks so very much. I will look into everything you mentioned. I have learned more in the last few days on this site then during the last 6 months working with Citi.

Citi turned out to be a JOKE. they should be arrested for Foul Play, and Banned from banking, the Lies lies and lies they tell and told us all

[CW California]

Originally Posted by SillyWorld

Citi turned out to be a JOKE. they should be arrested for Foul Play, and Banned from banking, the Lies lies and lies they tell and told us all

Hey silly happy 4th of July!

[SillyWorld]

Originally Posted by CW California

Hey silly happy 4th of July!

Same to you and all the readers out there enjoy whats left of it