Yeah, Verbal Proposal from CitiMortgage

[aubie37]

Today,

I heard back from CitiMortgage. Verbal proposal 5% fixed reaged to 30 years, reduces payment by about $109 per month.

Old scenario

6.5% fixed (FHA: Ginnie Mae)
$1111 month with tax and insurance

Due 4/1/2009

Taxes just over $400 annually
Homeowner's Insurance about $650 annually

New proposed Scenario

5% fixed (FHA: Ginnie Mae)
Basically $1000 per month with tax and insurance
Reverted back to 30 years
Added about $7700 to principal with past due taxes and insurance included

Currently, before this proposal I would due for over $11,000 and change in total by January 1.

As proposed new payment starts 1/1/2010.

Papers are supposed to be on the way to get notarized and return the down payment for plan.

[Evan Bedard]

Hi aubie37,

5% fixed (FHA: Ginnie Mae)
Basically $1000 per month with tax and insurance
Reverted back to 30 years
Added about $7700 to principal with past due taxes and insurance included

Currently, before this proposal I would due for over $11,000 and change in total by January 1.

As proposed new payment starts 1/1/2010.

Papers are supposed to be on the way to get notarized and return the down payment for plan.

Is this new payment affordable for your budget?

[aubie37]

The new payment is at 34.83% of my average gross income from my primary job and it is at 30.06% of my average gross between both jobs. They made me "fit" using both incomes. The payment break for two months and getting this behind me I can live with. I had already reconciled that I had to keep working two jobs as I am way under in what I do make now versus what I used too. FHA loans do not seem to get as big of a break from what I read anyway and I did not expect to receive what was proposed via NACA either.

[Evan Bedard]

Well yes they will make you submit all income for the modification. It really sucks that you have to work two jobs, but at least you are able to save your home

[aubie37]

Evan,

Thanks,this is improving my stress level. Each and every time I got new papers prior it showed even more money to be due and reps kept telling me I needed to make more money. I could get a two bedroom apartment for less per month and not be worried with owning a home. However, in renting I would actually be paying more in the extra utilities and services that most have monthly.

I look at like this it is as if I pulled about $12000 out of my home that I am only responsible for just over $7000 on and still got a lower payment to boot. At some point I will find better employment and hopefully out of the mortgage arena or in an area with much better pay. For now, and I am praying that it does follow thru with what was quoted, I need the peace of putting this last year behind me.

[aubie37]

UPDATE:

UPS delivered modification papers to my door about an hour ago. They indicate two copies to be signed and notarized and one for me.

Finally, It seems I am nearing the end of this battle.

[PRandall]

Aubie37,

I know it stinks that this is the BEST they can offer. Hubert looked over the FHA-HAMP guidelines I sent him, but didn't seem to motivated to do anything with them. So, I told him to send the documents for the 5% offer, so I could send them to NACA for review. Worse case scenario, I will have to take the 5%. At this point, I am sure you are thinking, let's just get this over with....I know I am. It is something...and better then nothing, I guess.

Hubert said my first lump payment would be due by the end of this month, but since I haven't received any paperwork, I told him that I would need him to extend that due date, which he said he would. So, how did you get them to extend your first due date to the first of the year? THAT, would be much better, imo.

PRandall

[aubie37]

PR,

The papers show a due date effective of 12/01/2009 but the required portion is covered by the amounts calculated. $750 shows as paid by HUD/ MI Contribution and the modification fee charged is $750.

I honestly do not know that NACA can get any better as Citimortgage has "alleviated" some of the past due by doing this, gave me a market rate, and bought me two months before a payment.

Basically, it appears as though the amount "to force" the account is covered in the 12/01/2009 part of this as the date of modified payment reads 12/01/2009, first pay due 1/1/2010, date interest modified 11/01/2009.

It "fits" guidelines with both jobs income and that is all I can ask to get this on behind me. The down payment is the difference between the amount of the forced assessment, less the capitalized interest, and HUD/Mi contribution netting what is essentially covering the difference for escrow as I read it.

[Sunbeam]

yeah! You got your papers! Good deal! Mine do not appear to be immenient. The post on my account was an error....the one that said my modification documents had been sent. Just another Citimortgage screw up.

[aubie37]

Sunbeam,

Yes, the papers arrived as Citi stated. This is a tremendous relief so far. I have to get this package back by Monday.

[m_nair]

Aubie,
Congrats, you should have two copies of the mod document and a amortization schedule too. You will also need two witnesses

[aubie37]

I sent the papers back via UPS and my down payment this afternoon. It looks like I will have a good Christmas this year and here is to a much better 2010!!

[m_nair]

Aubie37,
Awesome. The system online now shows my permanent mod information finally !!!!!

[abcxyz]

Originally Posted by m_nair

Aubie37,
Awesome. The system online now shows my permanent mod information finally !!!!!

m_nair,

how long did that take from the time you sent in the final mod docs, until the time the online system was updated?

[m_nair]

abcxyz,
The payment I enclosed was for the first payment due on November 1st 2009 and the counselor told me that it would show about 7 to 10 days before the 1st of November 2009.

Before I could see it online, I had called the Loss mitigation just to find out if they have received any updates. The guy I talked to told me that they have received the paperwork and in the process of updating the system and the updates should up next couple of days. After that conversation the updates showed up magically in two days.

[aubie37]

The counselor from the executive response unit left a message for me about an hour and a half ago. I have left messages back for them. I also checked the tracking number and the package shows as being received in the mailroom this morning for CitiMortgage.

[abcxyz]

Originally Posted by m_nair

abcxyz,
The payment I enclosed was for the first payment due on November 1st 2009 and the counselor told me that it would show about 7 to 10 days before the 1st of November 2009.

Before I could see it online, I had called the Loss mitigation just to find out if they have received any updates. The guy I talked to told me that they have received the paperwork and in the process of updating the system and the updates should up next couple of days. After that conversation the updates showed up magically in two days.

Great for you, i'm glad you're all done. I'm ALMOST there, but will not feel relief until I'm at your stage or until I actually receive the permanent mod docs to sign and mail back.

Just out of curiosity, if not too personal, what was the net you're saving each month from your original mortgage vs the modified one. Seems Aubie37 is only saving $109/month (better than nothing that's for sure, but her payments are pretty low to start with so that's about 10% savings each month), I'm in California, so have a humongous mortgage so my savings each month are going to be quite significant dollar wise if all goes through. How about you?

It's good to see some of these mods are actually being complete now!

[abcxyz]

mcnair, I just talked to the counsellor and they've drawn up my documents and told me they're going to UPS them today. I asked her the final payment figure, but she said it's not final until i sign it and send it back and it goes through quality control or something like. I told her to give me the number anyway, with the understanding that it's not "FINAL" yet. so she did.

After I send it back the signed copy and all, can it still get denied? I know quality control etc is part of the process, but is that just to make sure everything is signed, i's are dotted, t's are crossed, or can it still get denied after that? I'm kind of a skeptic until everything is finalized. perhaps i'm just worrying about nothing???

[m_nair]

abcxyz,
Nothing personal, I feel we are all in the same boat. My payments went down from $2900 to about $2,200 about $700 a month in savings.

I was with BOA before getting laid off early this year and managed to find another job and had to take a $30k paycut.

[m_nair]

abcxyz,
Did she tell you verbally what the proposal is going to be?

Another thing to note is that the first page of the doc has a date on or before which you need to UPS back the documents. Don't forget you need two witnesses and normally the bank employees will not witness it so you will friends or family to do that.

The only way it can get denied is quote from the mod document
"To expedite the Modification, we may have ordered a title update to ensure that our lien is protected. CitiMortgage may choose not to proceed with the modification if other liens exist."

Hope this helps. Hang in their and hope all works out well :-)

[abcxyz]

Originally Posted by m_nair

abcxyz,
Did she tell you verbally what the proposal is going to be?

Another thing to note is that the first page of the doc has a date on or before which you need to UPS back the documents. Don't forget you need two witnesses and normally the bank employees will not witness it so you will friends or family to do that.

The only way it can get denied is quote from the mod document
"To expedite the Modification, we may have ordered a title update to ensure that our lien is protected. CitiMortgage may choose not to proceed with the modification if other liens exist."

Hope this helps. Hang in their and hope all works out well :-)

Yeah, she went over all the terms with me etc, and I'm very happy with it as long as it stays that way and as long as that's what the docs say when i get them.

hmm...what does "To expedite the Modification, we may have ordered a title update to ensure that our lien is protected. CitiMortgage may choose not to proceed with the modification if other liens exist." mean? So they will check to see if i have any other loans for property under my name?

Also, on an unrelated note, if i wanted to add my wife's name to the title of the house (I bought it b4 we got married), would that mess anything up? and how would i go about doing that? I know it would've messed up the loan/mod if she was on the loan as it would have shown higher income etc, but fortunately they only consider the income of the person(s) whose name is on the loan. But does title have to do with anything?

[crewof5]

Hi ABC,

Congrats on getting the good news about your final docs being sent. i am prayig I will hear those words soon myself!

I have a question for you about the title search thing, you stated it said someething like if they find another lien on the property it may be denied. I have a HELOC on my house, but I told Citi about it when I applied for the trial. Do you think this is fgoing to end up being an issue since they knew about it from the beginning?

BTW, thanks for the info from my post about the missing paperwork. I will have my husband call on Monday, I can't call, I am not on the loan.

We were told by loss mitigation that we didn't have a counselor/negotiator yet, when did you get one? It seems odd to me that we wouldn't have one yet since we have mad our 3 payments.

Let us know when you receive the final docs, hope its soon!

[aubie37]

ABC,

Congrats on your verbal proposal as well. In some ways the second job is actually hurting but at least I got this lowered and only part of the past due was counted in my modification. Had I only been working one job it likely would have lowered my payment another $110 or so per month. The second job though is difficult to give the time too but I can manage.

[abcxyz]

Originally Posted by crewof5

Hi ABC,

Congrats on getting the good news about your final docs being sent. i am prayig I will hear those words soon myself!

I have a question for you about the title search thing, you stated it said someething like if they find another lien on the property it may be denied. I have a HELOC on my house, but I told Citi about it when I applied for the trial. Do you think this is fgoing to end up being an issue since they knew about it from the beginning?

BTW, thanks for the info from my post about the missing paperwork. I will have my husband call on Monday, I can't call, I am not on the loan.

We were told by loss mitigation that we didn't have a counselor/negotiator yet, when did you get one? It seems odd to me that we wouldn't have one yet since we have mad our 3 payments.

Let us know when you receive the final docs, hope its soon!

Thanks.

I didn't say about the lien thing, it was m_nair, i don't know anything about title or HELOC, so I'm sorry, i can't answer your question.

Yeah, have your husband call those numbers i gave you, and hopefully they can straighten out your paperwork.

My docs should be here MONDAY, i got the tracking number. I hope it's what they said it was! I'll keep you all posted.

[abcxyz]

Originally Posted by aubie37

ABC,

Congrats on your verbal proposal as well. In some ways the second job is actually hurting but at least I got this lowered and only part of the past due was counted in my modification. Had I only been working one job it likely would have lowered my payment another $110 or so per month. The second job though is difficult to give the time too but I can manage.

well it lowered your payment by 10% or so, so that's not too bad. your payment was only $1100/month. Mine's almost triple that.