Citi Offered Loan Mod on the first day of trying- But only $80 less

[aruna]

Today morning, I filled out the Homeowner Assistance application online. Last page of submission said, call 1-866-272-4749 to complete your application. I called and someone who sounded like a rep, confirmed all my numbers I entered on the site, and offered me 3mo trial payments of $1843.66. My current payment (PITI) is $1924.37. That's only $80 less.

(((I showed negative $300 on budget from net income and they should understand that in realty it never happens as on books and you always pick another $300 or so unexpected expenditures each mo. When I did a budget for our second Mortgage, I was negative $700 and they said we are too negative and they cant help us. Their argument was our payments were $500 and even if they wipe off the whole second Mortgage, we would be still falling behind. So, it does not make sense to offer me a loan mod. OK ! I redid budget to negative $300 and still wont help as we are current and would like to wait and see what our first mortgage has to offer. Sigh. Also, I think Citi takes gross income instead of net. I'm so confused and tired with this number game)


She cannot tell me what my permanent mod numbers are going to be, but said it will either be the same or increase but cant go lower. I said I've to think and will call again.

What should I do next? I need better help. I would like to talk to a Negotiator and not a rep. Advice?

[Sunbeam]

Is this your first mortgage you are attempting to modify? I wasn't sure. If so, and if you are trying for HAMP, then the formula is 31% of your gross income. If you have some other hardship, due to medical, etc. (we had to pour 50k into a dangerous foundation) then you need to document what the other hardship and how it is affecting your ability to pay and talk about how long you need help for... So, if they say no to HAMP and you truly have some other hardship then tell them you need a traditional modification based upon whatever your hardship is.

I hope this makes a little more sense....remember though if you have anything other than HAMP, your lender does not legally have to modify.

[abcxyz]

Originally Posted by aruna

Today morning, I filled out the Homeowner Assistance application online. Last page of submission said, call 1-866-272-4749 to complete your application. I called and someone who sounded like a rep, confirmed all my numbers I entered on the site, and offered me 3mo trial payments of $1843.66. My current payment (PITI) is $1924.37. That's only $80 less.

(((I showed negative $300 on budget from net income and they should understand that in realty it never happens as on books and you always pick another $300 or so unexpected expenditures each mo. When I did a budget for our second Mortgage, I was negative $700 and they said we are too negative and they cant help us. Their argument was our payments were $500 and even if they wipe off the whole second Mortgage, we would be still falling behind. So, it does not make sense to offer me a loan mod. OK ! I redid budget to negative $300 and still wont help as we are current and would like to wait and see what our first mortgage has to offer. Sigh. Also, I think Citi takes gross income instead of net. I'm so confused and tired with this number game)


She cannot tell me what my permanent mod numbers are going to be, but said it will either be the same or increase but cant go lower. I said I've to think and will call again.

What should I do next? I need better help. I would like to talk to a Negotiator and not a rep. Advice?

If you take your $1924.37 payment and divide it by 31%, you get $6207.64. IF the sum of your gross MONTHLY income for all persons whose name is on the loan document is LESS than $6207.64, then call again and tell them you are inquiring about getting qualified for the government modification where they lower your payments to 31% of your gross income. Then tell them what percentage the $1924 payment is of your monthly gross income.

So for example, if the monthly gross income is only $5000, then they should be able to get your payment down to $1550(5000 * 0.31), and your $1924 payment would be 38% (1924 / 5000) of your monthly gross income.

Try that and see what happens. I had a similar problem as you in the beginning. They said i didn't qualify because my income exceeded my expenses. I told them, "what do you want me to do then, be irresponsible like a ton of other people out there, and live beyond my means, and then come back to you and ask for a modification once my expenses exceed my income???" The lame-girl said, "yeah, you can try that...." I was quite put-off by that remark. THEN I proceeded to tell this same girl that my mortgage payments are much higher than 31% of my gross income...and I want to apply for the Obama modification...that seemed to flick on the lightbulb in her head and she proceeded to go through the numbers again, and lo and behold, my payments were near 50% of my gross income. Then from that time until now i've been working with them to get the modification and I'm keeping my fingers crossed that all will go thru...

Good luck...

[aruna]

Thank you sunbeam and abc. I will call them again and ask for HAMP.

CitiMortgage is our first. BofA is our second. Hardship as I lost job, and we are down to one income for last 10months. Our total Mortgage payments are currently 40.5% of our Gross income.

[SillyWorld]

Originally Posted by aruna

Thank you sunbeam and abc. I will call them again and ask for HAMP.

CitiMortgage is our first. BofA is our second. Hardship as I lost job, and we are down to one income for last 10months. Our total Mortgage payments are currently 40.5% of our Gross income.

Yea you can call Citi 5 times in 1 day and get 5 different offers then they say they mail the DOCs and you never get them

But always remember to show at least a plus $200.00 a month, lower your Food bills forget gas say you walk to work or whatever but you should have at least 200.00 a month in the Good

[gdubya]

Similar story to me, they were going to save me a whopping $180, going down from $2252 to $2071. What a joke. Make you ruin your credit for a few hundred dollars a month. They would make more than that from the government incentives from the program. They are just offering to take your tax dollars instead of your interest.

[SillyWorld]

Originally Posted by gdubya

Similar story to me, they were going to save me a whopping $180, going down from $2252 to $2071. What a joke. Make you ruin your credit for a few hundred dollars a month. They would make more than that from the government incentives from the program. They are just offering to take your tax dollars instead of your interest.

Always remember they make more on Foreclosure than MOD

[aruna]

I called them again today and asked for HAMP. They replied thats what I received ($80less). They refused to take the second Mortgage into the 31%. I asked for a supervisor and she said the same thing. Only option they are giving me is reducing the rate by 0.4% which reduces the payments by $80. She confirmed that there will negative info on my credit report, not just during the trial payments but during the life of the loan Mod. I said Thanks and hung up.

Glad I read a lot in loansafe about the negative credit reporting or I would have never known about this. How unfair !!! Negative reporting for life of the Loan Mod. Even shortsale goes away from credit report in 2years. Isnt it?

Do I have any chances of getting a better Mod from citi? HELP !!

[SillyWorld]

Originally Posted by aruna

I called them again today and asked for HAMP. They replied thats what I received ($80less). They refused to take the second Mortgage into the 31%. I asked for a supervisor and she said the same thing. Only option they are giving me is reducing the rate by 0.4% which reduces the payments by $80. She confirmed that there will negative info on my credit report, not just during the trial payments but during the life of the loan Mod. I said Thanks and hung up.

Glad I read a lot in loansafe about the negative credit reporting or I would have never known about this. How unfair !!! Negative reporting for life of the Loan Mod. Even shortsale goes away from credit report in 2years. Isnt it?

Do I have any chances of getting a better Mod from citi? HELP !!

Nope Short Sale after 2 years ypou can get another Loan if you qualify, but the record remains on file for 7 YEARS

[alideal]

This is just too frustrating. All I want is an actual person in the actual Making Home Affordable Department/Program at Citibank to lower my payment more than the $150 they have offered to lower it by. Really, if I can't afford it as it is . . .$150 bucks a month is not going to help -- and who the heck has time to be on the phone waiting for these people all day? And then to get the right person! It stinks to be just a regular person -- I need a prestigious position or title I suppose to get any attention with CitiMortgage.

This is all I have -- I can't lose it and more importantly, I can't fail my children.

I have a job - but it's been cut down to 12 hours a week from 30 -- and there just aren't jobs out there - certainly not for someone who needs some flexibility to care for three minor children.

The real frustration is that CitiMortgage has the ability to do it -- but they are not being straight forward -- they are not going to be helpful if they can avoid it. By law, they can reduce my interest payment down as far as 2% if necessary. Mostly, I just want to cut through the crap and take care of it -- I could put a check in the mail tonight, but it won't be for the full amount and if it isn't, it will go into unapplied funds and not show against my account -- it will still show a dilinquency -- that is the case with banks in general -- if the amount doesn't match (of course, they will take MORE) -- if you don't add in an increase in escrow (even as little as $20), for example, they will put your payment in unapplied funds and then charge you a late fee, etc. The banks are among the biggest crooks in this country. Don't get me started.

This should not be so difficult and it is really weighing me down -- I have never felt depressed before, I am just buried -- and then I look at my children -- how do the low-income families do it?

[aruna]

Shortsale would be my first option, and Loan Mod would be my last. But we didnt want to shortsale as our second lender BofA has no history of letting anyone go free of deficiency. I would rather have the house and pay, than pay for a foreclosed house...so is the loan mod..

Any opinions about my situation? Is there someone else in Citi I can contact to get better loan mod. Please help !!

[abcxyz]

Originally Posted by aruna

Shortsale would be my first option, and Loan Mod would be my last. But we didnt want to shortsale as our second lender BofA has no history of letting anyone go free of deficiency. I would rather have the house and pay, than pay for a foreclosed house...so is the loan mod..

Any opinions about my situation? Is there someone else in Citi I can contact to get better loan mod. Please help !!

Call the 866-272-4749 again and talk to someone else. You may be surprised by someone else giving you something a better option. When you called last time and asked for a supervisor, the regular rep probably told the supervisor what you guys discussed, so the supervisor just stuck by her employee's decision/numbers. Call two or three more times and see if you get a different response from a different rep...

[hope67]

Originally Posted by aruna

Negative reporting for life of the Loan Mod. !!

aruna..please don't believe what this person told you, this is totally incorrect, let me start by saying that any negative reporting is removed from your credit report after 7 years from the date the first missed payment, BK stays for 10 years. I think after you complete your trial and enter in an agreement they will report the modification.

[m_nair]

Aruna,
Call loss mitigation and talk to the folks there, they are usually very helpful and if you do not get an answer which you are satisfied with call again and you will get someone else who can.

Be persistent and patient, keep calling. Get the contacts information. After you have made the third trial payment contact them and try to get a permanent mod done.

[aruna]

Update: contacted citi again & negative reporting is only for trial payments.
Checked makinghomeaffordable.gov and 31% is for PITI+ HOA. Second Mortgage not included.
I read a story where 3mo trial payments from citi reduced credit score from 800-635. I dont want to take such a big hit just for $80less. I talked to a nice lady today who assured HAMP is the best program available and $80less is the best I can get, and new info for me is that your First & second has to be greater than 45% of gross to get help. Ours is only 40.5%. I'm stunned here, dont know how to proceed.

[abcxyz]

Originally Posted by aruna

Update: contacted citi again & negative reporting is only for trial payments.
Checked makinghomeaffordable.gov and 31% is for PITI+ HOA. Second Mortgage not included.
I read a story where 3mo trial payments from citi reduced credit score from 800-635. I dont want to take such a big hit just for $80less. I talked to a nice lady today who assured HAMP is the best program available and $80less is the best I can get, and new info for me is that your First & second has to be greater than 45% of gross to get help. Ours is only 40.5%. I'm stunned here, dont know how to proceed.

what is your payment % on just your FIRST mortgage, is that more than 31%? if so, i'd call again.

I woudln't worry about your credit score going down unless you are planning to take out a loan or apply for more credit cards which probalby is not a good idea in the first place. you can always rebuild back your credit. i don't think it's right that it will affect your credit score for the life of the loan, it's only UNTIL they make your modification permanent. ON the credit report during the trial period it's classified as DELINQUENT, ON PAYMENT AGREEMENT WITH CITI (but still current). After your mod is complete, then it's not a payment agreement anymore, it should revert back to normal.

Even for $80/month, that's $960/year. That's not chump change, that adds up. That's $28800 over a 30year period, and that's not even factoring interest or compounding interest if you were just to stick that money in some interest bearing account for 30 years.

I'd try and call again and see about the 31% if I was you...if $80 is the best they can do, i'd do that too, that's better than nothing right?

[aruna]

The new payments for the first mortgage will be 31.3% of our gross income.
Is there anyone who went thru CitiMortgage trial and can report here how many points your credit went down? Please..

[Sunbeam]

Have you asked CITI if they are reporting anything negative to the credit bureaus? I did and they sent me a letter stating nothing negative has been reported. I am going to hold on to that letter and if my credit takes a hit, I will demand the credit bureaus change the information.

[AZOwner]

Please sign the petition but together by Sr. Member caldwell:

Everyone - here are is our petition on two places on the web. Please sign them. Send the links to your e-mail buddies. Put it up on your facebook pages. Lets make this happen!

PETITION TO THE U.S. GOVERNMENT FROM AMERICAN HOMEOWNERS | Petition2Congress |

TO THE UNITED STATES GOVERNMENT FROM AMERICAN HOMEOWNERS Petition

[abcxyz]

Originally Posted by aruna

The new payments for the first mortgage will be 31.3% of our gross income.
Is there anyone who went thru CitiMortgage trial and can report here how many points your credit went down? Please..

Aruna, why are you so worried about your credit score going down? Yes, it does go down a little for the reasons I stated earlier, but once you get your modification permanent, then it won't be classified as delinquent anymore, and if you make the payments on time, you can build your credit back up no problem. Are you planning on taking out some giant loan or something, or why are you so concerned about your score? I'd focus on getting your loan permanently modified if I were you...

[aruna]

I'm willing to take a softhit, but not 200points less. We do not have an emergency fund and use credit for almost everything. We might have to replace our car anytime soon. When the points go down, all CC immedaitely reduce your limits, some just close the account. Mortgage is on both of our names, and we would be stuck without CC's and nowhere to turn. I've about 20K in CC and I'm keeping the APR's very low (Mostly 0%) by transfering the balances between cards using their offers, which I get because of my credit (score: 800). Once my score goes down, the APR's can increase to 30% , and $80 is not going to help me pay the difference.

[SillyWorld]

Originally Posted by aruna

I'm willing to take a softhit, but not 200points less. We do not have an emergency fund and use credit for almost everything. We might have to replace our car anytime soon. When the points go down, all CC immedaitely reduce your limits, some just close the account. Mortgage is on both of our names, and we would be stuck without CC's and nowhere to turn. I've about 20K in CC and I'm keeping the APR's very low (Mostly 0%) by transfering the balances between cards using their offers, which I get because of my credit (score: 800). Once my score goes down, the APR's can increase to 30% , and $80 is not going to help me pay the difference.

This is correct...BUT come FEB 2010 all cards are going up to 23% or more anyhows, so thats when I will be in the hole..

[aruna]

I mean the Balance transfer APR is 0-3%. But the purchase APR's are usually higher. My BofA is highest of all my CC's at 29.9%.

[SillyWorld]

Originally Posted by aruna

I mean the Balance transfer APR is 0-3%. But the purchase APR's are usually higher. My BofA is highest of all my CC's at 29.9%.

Yep thats who sent me the latter about Rate hike in FEB, my LOAN with BOA, was just a personal loan suppose to be fixed and thgey will change as of FEB, and if I disagreed I had to pay the loan off by FEB This Country is going to all H*** and no return

[aruna]

Because my 2nd Mortgage BofA wont do anything without seeing papers from Citi, I think I've to accept their offer of $80 less. Before I accept, PLEASE....Is HAMP the best program available? IS there a chance I can get a better rate than 6.25% APR?? Please advice