Mod offer- what to do asap - Loan Modification Forum

dawes11 · 10-20-2009, 11:47 AM

So we have a fha loan with a payment of $3180.00 a month on a 420k loan at 6.5% and missed 3 payments. Citi offered us a forebarance for 3 months at half payment, we made those and received a letter to submit new financials. I resubmitted and was just made a offer from loss mitigation of 30 yr fixed at 4.875% payment with tax and insurance at $2800.00. This is quite a bit more than I was hoping for. Does this seem like a good deal or what should I do?

Believe · 10-20-2009, 11:54 AM

Dawes, does your $3,180 include taxes and insurance?

dawes11 · 10-20-2009, 11:57 AM

Yes the original payment did include taxes and insurance. Me and the wife make a combined $5700 a month so this is basicly 50% of our income at the new payment. How do I know if I qualify for the hamp program as I beleive this is a in house mod

Believe · 10-20-2009, 12:17 PM

Is $5,700 your take-home pay, or is it before taxes? First place to start for HAMP is to take .31 x your gross pay (before taxes). Your payment must be more than 31% of your gross income to be eligible.

dawes11 · 10-20-2009, 12:23 PM

$5700.00 is the take home pay, i am just stressed because she said this was my only offer and they want a answer today.

Believe · 10-20-2009, 12:42 PM

Dawes, if your net pay is $5,700, I'm figuring your gross pay must be somewhere around $8,000. If that's true, then what they are proposing does seem high to me, also. Hopefully someone who has experience with Citi will stop by here and offer you some firsthand advice. What it boils down to is this - anything less than 5% is less than market, and it is a good rate. But, if you can't afford to make the payments, it doesn't matter what the interest rate is. If you can afford to make the new payment and want to keep your home, I would accept it. Sorry to not be more definitive. Good luck.

aubie37 · 10-20-2009, 01:18 PM

Dawes I am with CitiMortgage also and was verbally offered a proposal as well today. FHA loans tend to stay around the market rate. The payment quoted to me was based on 5%. It is not the worst scenario and not the best but I am okay with what they are finally offering up to get this on behind me.

ama125 · 10-20-2009, 03:13 PM

Quote:

Originally Posted by dawes11

Yes the original payment did include taxes and insurance. Me and the wife make a combined $5700 a month so this is basicly 50% of our income at the new payment. How do I know if I qualify for the hamp program as I beleive this is a in house mod

FHA-HAMP has its own guidelines, see here: Making Home Affordable Program Extended to Include FHA Insured Mortgages

10-20-2009, 11:47 AM	#1 (permalink)
dawes11 Junior Member Join Date: Jun 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Mod offer- what to do asap So we have a fha loan with a payment of $3180.00 a month on a 420k loan at 6.5% and missed 3 payments. Citi offered us a forebarance for 3 months at half payment, we made those and received a letter to submit new financials. I resubmitted and was just made a offer from loss mitigation of 30 yr fixed at 4.875% payment with tax and insurance at $2800.00. This is quite a bit more than I was hoping for. Does this seem like a good deal or what should I do?

10-20-2009, 11:54 AM	#2 (permalink)
Believe Senior Member Join Date: Feb 2009 Location: Iowa Posts: 361 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Mod offer- what to do asap Dawes, does your $3,180 include taxes and insurance?

10-20-2009, 11:57 AM	#3 (permalink)
dawes11 Junior Member Join Date: Jun 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Mod offer- what to do asap Yes the original payment did include taxes and insurance. Me and the wife make a combined $5700 a month so this is basicly 50% of our income at the new payment. How do I know if I qualify for the hamp program as I beleive this is a in house mod

10-20-2009, 12:17 PM	#4 (permalink)
Believe Senior Member Join Date: Feb 2009 Location: Iowa Posts: 361 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Mod offer- what to do asap Is $5,700 your take-home pay, or is it before taxes? First place to start for HAMP is to take .31 x your gross pay (before taxes). Your payment must be more than 31% of your gross income to be eligible.

10-20-2009, 12:23 PM	#5 (permalink)
dawes11 Junior Member Join Date: Jun 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Mod offer- what to do asap $5700.00 is the take home pay, i am just stressed because she said this was my only offer and they want a answer today.

10-20-2009, 12:42 PM	#6 (permalink)
Believe Senior Member Join Date: Feb 2009 Location: Iowa Posts: 361 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Mod offer- what to do asap Dawes, if your net pay is $5,700, I'm figuring your gross pay must be somewhere around $8,000. If that's true, then what they are proposing does seem high to me, also. Hopefully someone who has experience with Citi will stop by here and offer you some firsthand advice. What it boils down to is this - anything less than 5% is less than market, and it is a good rate. But, if you can't afford to make the payments, it doesn't matter what the interest rate is. If you can afford to make the new payment and want to keep your home, I would accept it. Sorry to not be more definitive. Good luck.

10-20-2009, 01:18 PM	#7 (permalink)
aubie37 Senior Member Join Date: Jul 2009 Location: Birmingham, Alabama Posts: 126 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Mod offer- what to do asap Dawes I am with CitiMortgage also and was verbally offered a proposal as well today. FHA loans tend to stay around the market rate. The payment quoted to me was based on 5%. It is not the worst scenario and not the best but I am okay with what they are finally offering up to get this on behind me. __________________ Loansafe helped save my home 10/2009!

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