Has anyone settled a second mortgage with Citi before starting a forelcosure? - Loan Modification Forum

g217814 · 10-18-2009, 09:15 AM

My wife and I are current on our house payments but have considered walking away since the value has gone down so far that we are looking at 7-10 years before we see a break even. This has not been an easy choice but it makes it easier since we dislike the city and neighborhood we live in and desperately want to move somewhere else. We live in Washington and recently consulted a real estate lawyer who indicated that we are certainly in our rights to walk away with no recourse on the first portion of the 80/20 loan we have with Citi Mortgage, however they may come after us on the 2nd loan with a deficiency judgement. I read on the boards here that some people have called there banks prior to ever going into foreclosure and settling the second mortgage for 5-20% of the actual amount owed. Has anyone done this with Citi yet? If you have already gone through a foreclosure with them have they tried to come after you with a deficiency judgement on the second?

Evan Bedard · 10-19-2009, 10:43 AM

Welcome and thank you for joining.

Quote:

We live in Washington and recently consulted a real estate lawyer who indicated that we are certainly in our rights to walk away with no recourse on the first portion of the 80/20 loan we have with Citi Mortgage, however they may come after us on the 2nd loan with a deficiency judgement. I read on the boards here that some people have called there banks prior to ever going into foreclosure and settling the second mortgage for 5-20% of the actual amount owed. Has anyone done this with Citi yet? If you have already gone through a foreclosure with them have they tried to come after you with a deficiency judgement on the second?

It is most definitely possible they will come after you for the deficiency. It would be great if you can settle the 2nd before foreclosure begins. I would call Citi right away and get started...

g217814 · 10-19-2009, 04:44 PM

Thanks for responding Evan, do you have any advice on how to go about the process when calling them, Maybe some do's and don'ts? thanks

10-18-2009, 09:15 AM	#1 (permalink)
g217814 Junior Member Join Date: Oct 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Has anyone settled a second mortgage with Citi before starting a forelcosure? My wife and I are current on our house payments but have considered walking away since the value has gone down so far that we are looking at 7-10 years before we see a break even. This has not been an easy choice but it makes it easier since we dislike the city and neighborhood we live in and desperately want to move somewhere else. We live in Washington and recently consulted a real estate lawyer who indicated that we are certainly in our rights to walk away with no recourse on the first portion of the 80/20 loan we have with Citi Mortgage, however they may come after us on the 2nd loan with a deficiency judgement. I read on the boards here that some people have called there banks prior to ever going into foreclosure and settling the second mortgage for 5-20% of the actual amount owed. Has anyone done this with Citi yet? If you have already gone through a foreclosure with them have they tried to come after you with a deficiency judgement on the second?

10-19-2009, 04:44 PM	#3 (permalink)
g217814 Junior Member Join Date: Oct 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Has anyone settled a second mortgage with Citi before starting a forelcosure? Thanks for responding Evan, do you have any advice on how to go about the process when calling them, Maybe some do's and don'ts? thanks

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