HAMP trial approved-not acceptable

[frustrated in mi]

The short version...
CitiMortgage 1st $410k interest only 6.875% adjustable.
Chase HELOC $94k 2% (tied to prime rate)
Applied 3 seperate times for various programs at Citi starting 11/08.
Chase would not discuss it then, so I decided to deal w/Citi 1st.
Credit score then about 790.
Citi approved, then declined, then said to start over when HAMP was rolled out.
Unfortunatetely, bankruptcy was necessitated in March 09. Nothing delinquent at the time. Tired of explaining why but it was unavoidable.
Negative equity $194k in April 09 (I hired appraisor).
Continued market declines and balances increasing so negative equity now about $250k.
Bankruptcy discharged 6/09, HAMP apv in 6/09.
Orig verbal apv had entirely wrong data (ie; orig loan amt $150k, etc).
Resolved verbally nxt day- docs to be sent soon.
HAMP trial docs rcvd 10/5/09 and again 10/14/09 (duplicates?).
Last paid both loans 3/09.
Many hours of calls & letters to finally learn that they only reduced rate & extended term.
Foolhardy for me to continue for the following reasons:
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• My credit is already impaired.
• The property is in need of some major repairs.
• I can legally “walk” since my debt to your company was discharged in bankruptcy.
• Housing in Michigan is so impaired that I can readily buy another comparable home for several hundred thousand dollars less.

Current credit scores are in the high 600s.
I offered $300k reaffirm in 3/09 and again in 6/09.

A very clear letter to Citi todays UPS offering $250k fixed 30yr 4%,fully amortized, all fees,neg escrow, etc included.
Estimated resale after forclosure, days on market, etc is approx $125-175k.

No one appears to have ever read any of my hundreds of pages of docs and letters...
Think they care that they will lose less if they settle?

[Evan Bedard]

Hi Frustrated in MI welcome and thank you for joining.

A very clear letter to Citi todays UPS offering $250k fixed 30yr 4%,fully amortized, all fees,neg escrow, etc included.
Estimated resale after forclosure, days on market, etc is approx $125-175k.

No one appears to have ever read any of my hundreds of pages of docs and letters...
Think they care that they will lose less if they settle?

I totally see where you are coming from. But the reality is it is very unlikely to acheive any type of principle reduction. I have seen probably 6 now in the past two years, and three of them were within the past couple months from Wachovia..

[frustrated in mi]

I am fairly sure that you are correct, but it is prudent to try all alternatives.
The good news of course, is that I am essentially debt free and will be able to remain in the home for a considerable length of time while saving for another home. They are literally giving them away in this market.

[Evan Bedard]

I am fairly sure that you are correct, but it is prudent to try all alternatives.
The good news of course, is that I am essentially debt free and will be able to remain in the home for a considerable length of time while saving for another home. They are literally giving them away in this market.

Didn't you state that you have not made a payment since March?

[frustrated in mi]

Correct. No payments since 3/09.
Bankruptcy started 3/21/09. No collection activity allowed. Nothing can happen untill they want the property back. Then they start the process and it should be 6-18 months (or more) in MI.

[Evan Bedard]

Wow that is a very long time to go without payments and you should be able to save a large amount of money..