Home Stretch

[Sunbeam]

I have been posting our "saga" under Wit's End. I spoke to our citimortgage negotiator today and she is assuring me we will have our modification by November. We have been in this since February 2009. I was denied by Citi, I escalated it by writing directly to Freddie Mac and my congressperson and the executive response team. I had recently started to work w/ NACA, but don't believe I need to go there now.

We had a 30 yr at 5.65 (ARM) and it looks like our modification will take us to 4.0 fixed. I'll post the details when I get more information, but I wanted to share with people who are throwing in the towel after being denied, ignored, lied to, given bad information that quitting will of course only lead to failure.

I also want to thank this forum. Without the insight of others who are dealing with like issues and the camraderie that exists here, I would not have had the fortitude to continue this fight.

[BobandArlyn]

You ARE a SUNBEAM!!! Thanks for the post and congrats. I hope your mod packages comes quickly!

Take care and get some rest tonight.

Arlyn

[Citigrope]

Congrats! I hope the rest of the road is an easier stretch.

[abcxyz]

Originally Posted by Sunbeam

I have been posting our "saga" under Wit's End. I spoke to our citimortgage negotiator today and she is assuring me we will have our modification by November. We have been in this since February 2009. I was denied by Citi, I escalated it by writing directly to Freddie Mac and my congressperson and the executive response team. I had recently started to work w/ NACA, but don't believe I need to go there now.

We had a 30 yr at 5.65 (ARM) and it looks like our modification will take us to 4.0 fixed. I'll post the details when I get more information, but I wanted to share with people who are throwing in the towel after being denied, ignored, lied to, given bad information that quitting will of course only lead to failure.

I also want to thank this forum. Without the insight of others who are dealing with like issues and the camraderie that exists here, I would not have had the fortitude to continue this fight.

Congrats Sunbeam!
Hmmm...4.0% fixed sounds awfully low. I thought the rates are supposed to be 2% for 5 years, then 1% increase per year for years 6 to 8, and then fixed at a cap at whatever the rate is at the time they draw up your documents. Maybe they have some other arrangements for you, i'm just curious where the 4.0% number came from and if you asked them?

[MyHAMP]

Originally Posted by abcxyz

Congrats Sunbeam!
Hmmm...4.0% fixed sounds awfully low. I thought the rates are supposed to be 2% for 5 years, then 1% increase per year for years 6 to 8, and then fixed at a cap at whatever the rate is at the time they draw up your documents. Maybe they have some other arrangements for you, i'm just curious where the 4.0% number came from and if you asked them?

Under HAMP (and I'm not sure Sunbeam went for that), the initial interest-rate isn't automatically 2%. If reducing your current rate to a higher APR already does the trick (bring your payment to 31% of gross income), they won't lower it to 2%. 2% is the floor - as low as they can go.

I'm assuming sunbeam isn't on HAMP because the 4% fixed doesn't match. A fixed rate under HAMP that doesn't change should be closer to 5% - the current FRM according to Freddie Mac.

[Sunbeam]

I was turned down for HAMP because we did not qualify. Our first mortgage had us at 31 percent. Our 2nd mortgage and some horrible unexpected debt due to having to do emergency repairs to our foundation put us over the top. Our mod is happening through grit and determination and a requirement that we ask ALL of our creditors to lower our rates...we were only succesful in moving our 2nd (not through Citi) a half a percentage point down and getting our credit card companies to hold our current rates and not raise them like they have done to millions of consumers. When I have all the details I will post. What I have now is verbal and I am hoping beyond hope that my citi negotiator is on the up and up.

[darkdays]

Unless your cc rates are low already, you can get the cc to reduce the percentage they are asking. My cc reduced my interest rate from 21% to 6%. best of luck to you

[Sunbeam]

darkdays, thanks for the post. Can you give us all some tips on how you negotiated your cc interest rates down to 6%? I want to know. My FICO is around 730 and I was only able to get my cc companies to hold at what I already had which was 3.25% on one (I love this card and will only part from it when I die), 13.99%, 9.9% and 7.9%. If I could get those higher ones down to 6 percent I would be so happy. I'm all for getting rid of all debt. I am so spooked by the banks and their greed that I will eat mac and cheese and cut my own hair to save money to get out of debt!

[darkdays]

BOA sent an express mail letter advising that I had 2 weeks to call and accept an offer or they were going to take me to collections. I made the call and it was like applying for a modification on a smaller scale (reason for falling behind, monthly income and monthly debt). The guy through the numbers into a computer and within 3 minutes he told me what the offer was. Asked if the payment ($350 dollars less than my previous monthly payment) was workable for me. I said yes and he said the application with the computer's decision had to be reviewed by a human to make sure there were no mistakes and I would hear back within 3 business days. I figured I was on the mod-denied merry-go-round even with my cc now but to my surprise, the express mail letter came on the 3rd business day congratulating me on the new terms of my cc and confirming the new interest rate (6%) for the next 5 years. The only catch (which isn't an issue to me) was that if I fail to make a monthly payment on time at any point within 5 years, the deal is off and my interest rate on any balance on the account is jumping back to 21% OR WHATEVER THE PREVAILING RATE IS at the time if it is above 21%. Just like with the mods, you can't say you don't have $$$ to pay because what scares them is you have one bad unexpected situation and you are back where you started from. You have to tell them you are attempting to crawl your way out of your dark hole and demonstrate it. The credit card company would rather have their money and the 6% rather than sell the debt at a drastically reduced rate to a debt collector but only if they feel comfortable knowing they are going to get their money back and some %. Since the banks are raising interest rates it may be difficult now but I was offered this 4 months ago.

[darkdays]

Originally Posted by Sunbeam

darkdays, thanks for the post. Can you give us all some tips on how you negotiated your cc interest rates down to 6%? I want to know. My FICO is around 730 and I was only able to get my cc companies to hold at what I already had which was 3.25% on one (I love this card and will only part from it when I die), 13.99%, 9.9% and 7.9%. If I could get those higher ones down to 6 percent I would be so happy. I'm all for getting rid of all debt. I am so spooked by the banks and their greed that I will eat mac and cheese and cut my own hair to save money to get out of debt!

Forgot to mention, my FICO is NOT 730. It's south of there and I couldn't tell you how low it is because I really don't know. It has taken a hit from this mortgage mess I am in and that is fine because it is re-buildable. As long as I can stay in my home I don't need to worry about what my FICO score is because I am not looking to take on any debt.

[Sunbeam]

Hi darkdays....I hear you about not caring what your FICO score is. If you aren't going to take on anymore debt, then you are correct, it doesn't matter. I guess I have not really made peace with that yet and have been killing myself to stay current on everything. I'm fortunate enough to work in an area where I can pick up extra cash (by working more) to keep up on stuff....my husband has been furloughed so that dropped our income, I picked it back up by putting in an extra 20 hours a week on top of the 50 I was already working....this is taking a toll on me.

So I guess my strategy with the cc companies is to tell them I can't work extra anymore to keep up with all the payments, so if they can't lower my interest rates I will have to default. Or I guess I could just pay a few late and see what they have to say about that?