NACA - Current but will fall behind during process

[simon2020]

I worked so hard to get the ball rolling with Citi Mortgage after they sent in the mail to me way back in November a flyer that said - LET US HELP YOU BEFORE YOU FALL BEHIND, etc. Well, I did that and to make a long story short and 2 separate applications AND 7 LONG MONTHS to have them say NO!

I have lost sleep, hair and patience with Citi Mortgage and they have put me through the ringer.

I lost my job 8/2007 and got a new one at 60% of my old salary a year later.

So, as most of us here, I am barely making it paying my mortgage and I really want to keep my home.

So after 2 frustrating attempts working directly with CITI, I decided to work with NACA. Last week, my package was complete and the representative said they were proceeding to send the informaton to CITI and start the negotiating process. Of course, they warned me it will take at least 45 days to hear from them. That I can live with - as long as I get some type of loan mod, I will be happy.

OK, so here's the big question:

If I miss a payment during this 45 day waiting period (some emergency expenses came up) -- what are the risks, NACA/CITI will slam the door on my face again? I would be 30 days late because some of that mortage money is going to these other expenses.

Oh and I have been current and if I miss the next payment - it will be my first DEFAULT with CITI.

Thanks. Any input would be appreciated.

[SillyWorld]

Same here never had a default, NACA just updated my account this SUNDAY

Homeowners Name: xxx
Servicer: CitiMortgage
Loan Number: xxx
Path: Restructure

This is a Restructure Solution requested by NACA and the homeowner. The NACA Counselor and homeowner have reviewed the family's individual circumstances, and have determined a mortgage payment they can afford based on a tight and realistic budget. The enclosed documentation consists of the Affordability Budget (cash flow analysis to achieve an affordable payment), Homeowner's authorization, Hardship letter, verification of income, Property tax, Homeowner Insurance, and HOA assessment.

The Mortgage payment must consist of the following: Principal, Interest, Property Tax Escrow, Property Insurance Escrow, Mortgage Insurance and HOA. While NACA has provided estimates of these below, we need you to verify them and provide final amounts We are requesting that you reduce the interest rate and/or mortgage amount to not exceed the homeowner’s maximum affordable payment identified below for Unpaid Principal Balance (UPB). While NACA has provided an estimated UPB for both the first and second mortgage balances if you service them both, you need to provide the final UPB amount as part of the Restructure Solution. The payment needs to be fixed for the remaining term of the loan with the taxes and insurance escrowed, where possible. If you are unable to achieve this affordable payment due to investor limitations, please provide the investor contacts for NACA to appeal the decision. The information needs to be provided to the NACA Negotiator assigned to you.

And if you look around seems others had there account also updated, and as well they listed my proposal online was not there since MAY 18...

But they told me before ya GOTTA DO WHAT YOU GOTTA DO WHEN YOU ASK IF MISSING A PAYMENT..iT COULD SPEED UP THE PROCESS OR COULD CREATE A DELEMA. They will not tell you what to do, but if the HOME is what you want then you would make the mortgage payment, and skip any Credit Card and Loan payments not on a lein on the mortgage as the loans cannot take your home, or CC, only the mortgage comp can take the home

[simon2020]

Well, thanks for your response Sillyworld. I understand your point, but I think you missed the gist of my question. The money that should have gone to next month's payment - which I am going to miss went to an emergency - it's not like I had these credit card bills that are not attached to my home - an emergency came up and so the mortgage will fall behind by (1) month.

[SillyWorld]

OK you did what you had to do and 1 month is not a big deal, they may just speed up your process for the better, as I am sure you read in here banks even tell ya to miss a payment here and there, Citi told me to not make payment way back when..I declined that deal

[Elora123]

I am also working with NACA and current with my mortgage. I don't want to do forbearance because it will make my good credit go south. I was told you need to make the payments to show good faith(and they will be less than my current payments) the government programs are set up to help those who are behind, so I have to get behind, but only under their terms. Default in the sense you make their requested payments, but was also told to not pay credit cards or any other expenses in order to stay current on the mortgage. Deal with your other creditors seperately? Catch-22 in my opinion.
If you default once they will consider you no-longer trustworthy for a mod. That's my take on the whole thing.

[SillyWorld]

I have seen others loose there home from thses lower payment MODS, they find out in the end they never qualified, after 3 months and NACA did tell me not to be late on Mortgage payments, because I am an FHA loan I can always go for a Streamline if no payments were missed, but NACA offered me a better deal if they can get it...

[simon2020]

I gotta do what I gotta do.

[CW California]

Simon missing a payment or two will not ruin your chances for a mod. NACA will still aggresively work to resolve it for you. You might ask NACA if your credit reporting has been frozen while they work on it.....

[simon2020]

Thank you CW California.

What did you mean by "ask NACA if your credit reporting has been frozen while they work on it."

[Elora123]

I agree, you have to do what you have to do. A great many of us are on the precipice of some financial disaster, job losses, physical illness and of course the emotional ones which are aggravated by the long tedious trials of trying to save our homes. I think if you miss payments they would accelerate your app. or find another program that would fit your current situation. Hang in there and don't give up. I plan on being relentless.

[CW California]

Originally Posted by simon2020

Thank you CW California.

What did you mean by "ask NACA if your credit reporting has been frozen while they work on it."

Well Simon I recently completed a mod thru NACA and stayed current thru out. My new payment begins in Sept. and they have included the August interest in the balance so no payment for me in August. I contacted the bank (mine is BofA), knowing that the bank computer would not be updated until after the first payment on the mod, and asked them what about August would they be reporting me late with the credit companies. The BofA rep told me they have an agreement with NACA to freeze credit reporting while going thru a modification. It remains to be seen if they will mess with me. I would bet though that the agreemnts are the same with all banks so if you were current when NACA submitted you, but fell behind, maybe your credit wouln't get dinged.

[simon2020]

Ok I now understand. I'll call NACA on Monday to clarify with them about it.

Thank you so much.

Btw - could you tell me your experience with NACA? How long did it take? Any hiccups? Did you take the first offer and speaking of offers, what was your old rate/terms and what did your bank offer? Did they really take "45" days to have an offer for you?

I'm glad the paperwork/phone interviews are done. I guess that was the hard part. Now it's the waiting I will have to deal with -- hopefully I will have something to be happy about in the next 2 months.

[CW California]

Originally Posted by simon2020

Ok I now understand. I'll call NACA on Monday to clarify with them about it.

Thank you so much.

Btw - could you tell me your experience with NACA? How long did it take? Any hiccups? Did you take the first offer and speaking of offers, what was your old rate/terms and what did your bank offer? Did they really take "45" days to have an offer for you?

I'm glad the paperwork/phone interviews are done. I guess that was the hard part. Now it's the waiting I will have to deal with -- hopefully I will have something to be happy about in the next 2 months.

Hey Simon
The hardest part for me was getting submitted. I own a small business and it took quite a few reps to get it right but I persisted and stayed calm. Once I was submitted it didn't say submit to servicer right away because they do have a final department that aproves it all before they do and they kicked it out again. But I hung in there, stayed positive, didn't complain and just got them the info they requested. Once that happened they submitted it to BofA. I then called BofA in 1-2 weeks to make sure they had the info. You could find out what dept. at Citi handles the non-profits and follow-up. After that call I started to see movement on my online account and I had a proposal in less than 30 days. I have a 1st and 2nd mortgage. NACA was only able to work on the 1st. My loan was for close to 400K @ 6.25% fixed, investor is BONY. Naca got me 2% life of loan and that save me close to 1K a month. Next I have to try for a mod with my 2nd. That's Citibank. Uhgg. Hate the thought of going thru this again but a reduction on that one would really help me out for the life of my loans. I really don't forsee huge business increases for many years to come.