Wit's End

[Sunbeam]

We have a first mortgage with Citi which is owned by Freddie Mac. In February 2009, I submitted the full package request for a modification to Citimortgage. I sent monthly budget, copies of our pay stubs, home owners insurance, property tax, copies of checking account statement. I called them about once a week or so. Was told it was being worked on.

I called in April and was told it was still being worked on, but that we qualified under the Obama plan and all that was needed was an appraisal. The rep ordered an appraisal. Two weeks later I called and was told an error was made, the file was closed, a new appraisal would be ordered. I called two weeks later and was told the same thing! Each time I called I was told we qualified under the Obama plan! When I asked what our interest rate would be, I was told as low as 2.5%, but most likely around 4.5%. This would be fine, since we need to trim about $300.00 from our monthly budget in order to stay out of trouble.

I called Thursday, July 3, was told the appraisal was not in, give it until Monday or Tueday. I called today. Was told the appraisal was not in, the file was closed and that everyone had been lying to me when they told me we qualified! I was also advised a $84.00 appraisal fee was tacked onto our mortgage! I blew a gasket. Spoke to someone in the delinquency dept who told me our mod was still being worked on, not to worry, also the $84.00 fee would be easily removed by customer service. Getting this fee removed was not easy! I was on the phone for 2 hours on just that part of the call. Seems Citi is tacking on fees to the mortgages of people who are asking for mods to make a little extra money. They never disclosed this fee, they never mentioned it nor did they advise me of it in writing. It will be removed, but why was it on there in the first place?

We have never been late, don't want to be late, but we really need Citi to follow through on what they said they would do which was to get the appraisal and if we were not upside down (which we are not) that they would same day do the modification....that we qualify! I can't make them do it, what do I do? I am writing a letter to my congresswoman to seek help. Any other suggestions are appreciated!

[Evan Bedard]

Hi Sunbeam welcome and thank you for joining.

I called today. Was told the appraisal was not in, the file was closed and that everyone had been lying to me when they told me we qualified! I was also advised a $84.00 appraisal fee was tacked onto our mortgage!

I'm not exactly sure why they Citi would add any appraisal fee to your mort, especially if one was never completed and disclosed to you...

As far as your modification it seems like Citi is giving you the old run around tactic, and everytime you call their trying to get you off the phone asap..

Once you confirm your modification is in process it is vital that you keep in contact with your lender as much as possible. I would suggest maybe one to two times a week to make sure nothing slips through the cracks. Keep us posted on your progress and the outcome of the letter that you are sending.

[Sunbeam]

Thank you Evan for the encouragement. The people I spoke to at Citi today were all wondering how this fee got tacked onto my mortgage as well but noone wanted to take responsibility for it. They kept telling me I had to write a letter to their Research Services to put it into dispute. This really ticked me off since they were asking me to write letters about something they should never have done and should have just taken right off my account. I did finally get someone [Luree (LV01466)] to get the charge removed.

I will call more often now. I didn't want to be a pest, but it seems this is the only way to get any action. I just wish I could cut through the red tape and talk to someone who actually has some power and control.

I will post a copy of the letter I'm writing to my congresswoman here as well.

[Sunbeam]

Here is the letter. I removed (of course) personal info:
July 7, 2009

Congresswoman Jean Smith
1234 Y Street
Main Street, CA
Dear Congresswoman Matsui,
I contacted your office via email in May of this year regarding problems we are having obtaining a mortgage modification from Citi Mortgage. Our loan is owned by Freddie Mac. The account number of this loan is xxxxxxxxx. I have been in touch with the counseling services you recommended. None were able to assist us.
Our loan is current and has never been paid late.
We applied for a modification from Citi in February. At that time I submitted our monthly budget, copies of tax returns, checking account statements and a letter indicating what our hardship is. We had to make necessary repairs to our home which totaled over $50,000.00. This put a huge strain on our budget, but we maintained paying our mortgage and all bills on time by cutting back on any and all unnecessary expenses and eliminating our savings.
I was in contact by phone with Citi about every two weeks and every two weeks I was told it would take another two weeks. I was told the names of the people working on our file, but they never once contacted me. I can give you their names if you wish.
In April, I phoned to check on the status and was told by Citi that we qualified for a streamline modification under Obama’s plan. All that was needed since they had all of our personal information was to get an appraisal. I was told this would take two-three weeks. I called in May and was told an error was made and the appraisal was not done, but we qualified under Obama’s plan. The appraisal was re-ordered. I called again on June 10^th and was told another error was made and that a new appraisal was to be ordered. Again I was told we qualified for the Obama plan. Each time I called I was told once the appraisal was in, the modification would take place that day and the interest rate could be as low a 2.5%, but probably more like 4.5%. Numerous people at Citi told me the same story. The rep I spoke with on June 10th told me to call back after the first of July and if the appraisal was good, meaning if the value of our home came back at no less than 105% of the mortgage, we would get the modification that same day.
I called Citimortgage on Thursday, July 3^rd and again was told the appraisal was not in, but we qualified for the Obama plan, just needed that appraisal and the modification would be processed. When I tried to pin the rep down on interest rates, he said as low as 2.5%, but probably around 4.5%. I called again today, July 7^th. The representative I spoke with told me the appraisal was not completed. He also told me there is an extra fee tacked onto my mortgage of $84.00 for doing the appraisal. I was told over and over again there would be no fees! I told the rep I refused to pay this fee as it was never disclosed to me. After two hours on the phone and transfers to various people, I was assured it would be removed and that they had no idea why this fee was tacked onto my mortgage. When I asked what I could do to insure Citimortgage never again tacks a strange fee onto my account that is not covered under our contract, the representative could do nothing but apologize and tell she could not understand why this had happened, it was not the norm.
Congresswoman Smith, after four and a half months we have not made any headway on getting our mortgage modified. I cannot get the person or persons who are working on our file to return phone calls. The last person I spoke with in the loss mitigation department, Eric Martinez of Citimortage,
I am requesting your office intervene on behalf of me and my husband to expedite the modification to our loan under the Obama “Making Home Affordable Plan”.
You may contact me by telephone at :
Or via email at:
Thank you for your time and effort to lend a hand to us. Sincerely,

Mr and Mrs. xyz

[Sunbeam]

I called today and was told by the rep she would have Eric Martinez call me back today. I advised her that I doubted he would. She emphatically assured me that he would. She was emailing him and he would call me right back. I asked for his email address and she said she could not give it to me nor his telephone number. Hmmmm....

[SillyWorld]

Hmm Good Luck, Nice letter if you need Backup I am in PA been through the same deals But I am in PA it is happening all over the place

[Sunbeam]

Thanks SillyWorld. I spent the afternoon reading through the fact page on the Department of the Treasury website that outlines the HAM program. I may be out of luck since it states the 31% DTI would include only the first mortgage. Then I read further and there is an FAQ that asks if a homeowner could qualify if they have a 2nd and it says yes as long as the 2nd lien holder will stay in second place. This whole thing is not clear. We figure we are at 34% if we can include our 2nd mortgage into the calculation.

And of course noone from CITI called me back today. I could have foretold that. I did talk to someone else this am who told me we did qualify when he input the data on the 2nd mortgage.....and he assured me that he would have Eric Martinez call me back. I called at 7 am this morning. Tomorrow I will call at 6 am. Heck, why not 5 am? I'm not getting any sleep anyway!

[SillyWorld]

But is your Loan an FHA backed meaning your 1st is serviced by Citi, if so refinance would be simple

[Sunbeam]

The first loan is Freddie Mac.
Question: are the refinance fees on a streamline refinance mitigated in anyway or can the lenders charge whatever they want?

Our second mortgage is through Bank of the West, a fairly small regional bank.

[SillyWorld]

On an FHA loan you can streamline (refinance) with no cash out at anytime to lower the interest rate, usualy costs involve closing and title fee's.

What they would do is take a credit check ( not required) but many FHA approved banks will, just to see what kind of person you are and what type interest rate you may get, you8 can get lowest streamline if credit is rated 620 or higher, under 620 is higher interest rate.

an example I went for a $200,000.00 streamline all taxes and new erscrow added would have added $8,000.00 to loan with a new 30 year, now that also would be 2 months of payments added because they pay off current loan and give you 2 months grace, and added would be 1 year of taxes and INS which my old escrow would be closed out and they would have to send me the cash as a rebate

Which all in all woulda gave me $6,500.00 saved and not paid till new loan started and with new lower payment

But I rejected because NACA claimed they can get me a lower interest without refinance for another 30 as I am getting too OLD for 30 more years

[SillyWorld]

You can go to FHA website and get most of the info and find a local bank or national bank that will streamline a loan that a bank services

FHA Home

Or you can call or sign up with NACA like many of us here have done

https://www.naca.com/refinance/refinanceTenStep.jsp

[SillyWorld]

Here is a link that will take you to a site all you do is add your ZIP it will list all FHA approved lenders in your area

Lender List - HUD

[Sunbeam]

Thank you SillyWorld for that information. Our credit score is well over 700, so we could probably do well with an FHA streamline. I will check it out.

My husband contacted Acorn as they do HUD counseling. I don't know if I am up for NACA...don't you have to do participative stuff for them? Not that I don't like to participate, don't get me wrong, but I don't really "get" NACA.

I did talk to Citimortgage again today. Confirmed we do not qualify for HAM as our gross income is too high. We just ran into some problems with home repairs that went WAY over what we thought they would be due to poor original workmanship. I'm talking $50K over. I could weep....that is why we were asking good ole Citi for some help since back in Feb. They took the Homeowner's assistance pkg I filled out and filed it somewhere and then in April told us we qualified for HAM. I was skeptical, but I went along with them because they KEPT SAYING IT. Well, IT was a lie. I hate being lied to. I wish Citi had to pay for the heartache they have caused me with their lies. Very deceitful. Or untrained....one or the other, its all the same to me.

[SillyWorld]

NACA will not make you particapate in any rally's or the likes, only if you wish to, reason I am using them they are working to restructure my loan, without the cost's of a streamline, meaning a savings for me down the road, and they say they can get me a lower payment than a streamline, as the streamline will only be done at the market Rates, and NACA can get lower than market rates, anywhere's from 2% to 4.5 as streaml;ines now are at 4.87% and up

[Sunbeam]

Thanks again for that information! If you don't mind me asking, what is your DTI ratio on your mortgage and what are you aiming for?

[SillyWorld]

Citi claimed I was Negative -$700.00 NACA worked me down to -$200.00, But NACA will not count Credit card payments they use 1st and 2 mortgages and car loans and ustities, and food, and they go by your NET income not Gross, but I was like 57% on 2nd and 1st and car

[Sunbeam]

Hi,
Are you above 31% when you consider only your first mortgage?

[SillyWorld]

41% of my gross is just my 1st mortgage

[Sunbeam]

Ouch. That is rough. I hope you get that NACA mod! I'm pulling for you! Good luck!

[SillyWorld]

Well I am getting a luittle Ansy waiting for NACA responce I just want to know if they can do anything cause Rates are low again and I can get a refinance doing a streamline But thats another story...

[Sunbeam]

I believe I am done. I called the office of the president, Citimortgage and the woman I spoke to confirmed we are not eligible for a modification because our first mortgage does not put us at a high enough DTI ratio. What does put us over is our second mortgage. Citi does not carry the paper on the 2nd, so they do not care. When I asked her why we were strung along for so many months (Since February 2nd) she showed zero empathy. No apologies, no "gosh, we told you wrong stuff, and I am sure that was really upsetting to you.", nope, none of that.

Do not expect Citi to take any responsibility for anything they misstate to you. if they tell you that you qualify, don't get your hopes up until you have an offer in writing, you will only get heartbroken like I am right now.

[SillyWorld]

Originally Posted by Sunbeam

I believe I am done. I called the office of the president, Citimortgage and the woman I spoke to confirmed we are not eligible for a modification because our first mortgage does not put us at a high enough DTI ratio. What does put us over is our second mortgage. Citi does not carry the paper on the 2nd, so they do not care. When I asked her why we were strung along for so many months (Since February 2nd) she showed zero empathy. No apologies, no "gosh, we told you wrong stuff, and I am sure that was really upsetting to you.", nope, none of that.

Do not expect Citi to take any responsibility for anything they misstate to you. if they tell you that you qualify, don't get your hopes up until you have an offer in writing, you will only get heartbroken like I am right now.

Yep I been telling Peeps in here not to go Citi alone, they are on bare grounds, like near the end, and have all there BK Lawyers all ready for the big BK if the Bomba man does not bail them out

[mel239]

What is NACA? I contacted HOPE and they transferred me to OHIO FINANCE HOUSING AGENCY who requested all paperwork involved with CITI. I soon received mail from ESOP who requested the same info and had me sign statements that I agree not to hold them responsible and that they cannot be held responsible if a workout is not approved.I told them that Gary Hernandez of CITI had already told me I was appreoved For a great pkg and I would be so happy that I would call him back and thank him.These were his exact words.I wish I had taped it.I told everyone I talked to for 5 mos.that I could only be reached by eail or US mail as my phone was turned off by my choice.

[mel239]

Bottom line-citi lies.They route you to people you cant understand and they hang up or disconnect you.In 45 minutes I will leave for a "case mgmt conference at the courthouse." Cant afford an attoney so I will be alone.Anyone know what this is.How far away am I from a foreclosure?

[SillyWorld]

Originally Posted by mel239

Bottom line-citi lies.They route you to people you cant understand and they hang up or disconnect you.In 45 minutes I will leave for a "case mgmt conference at the courthouse." Cant afford an attoney so I will be alone.Anyone know what this is.How far away am I from a foreclosure?

4 Months of no payment starts the forclose deal...