Might Citi not take back house? - Loan Modification Forum

drweb · 10-28-2009, 09:25 PM

Hello,
I don't know how unique my story is or not but I haven't found any similar stories in reading a few pages of this sub-forum so here goes...

In early September after 4 months of non-payment of our mortgage with Citi, we left the house and relocated within the same state. Every couple of days we would make the drive back to pick up more stuff and to get mail and check the property and keep it mowed and swept. On mid September we found a sticker on our door stating the house was abandoned and that if they didn't hear from us within a couple of days they would re-key the house so they could protect their investment and winterize the property. That was actually fine with us. I called and let them know I had an appointment with the utility company in a couple of days to turn off the gas and electricity and that they were more than welcome to have their home back.

We were 15 years into a 30 year mortgage with about $15K in equity and no other mortgages or loans on the house, balance roughly $48K.

I was told by the Citi rep that they I could have a deed in lieu of foreclosure but I would have to go to the Citi mortgage site and fill out the mortgage assistance paperwork so they could approve it. I told the girl I was not interested in assistance, we were gone and had no want or desire to keep the house. She said that was fine but this was standard operating procedure. Fine. So I filled out the forms and faxed the requested last two years of tax returns.

I am employed and make OK money but my hours have been cut back this year and my wife hasn't worked in years while raising the kids and we are in CC debt around $15K. We dropped $10K cash this year redoing the bathroom and living room trying to make it more sellable and after 4 months on the market, not so much as one bite. This was all of our savings, we gambled and lost. I thought someone would buy it for the ridiculously low asking price but no.

The neighborhood had gotten bad over the past few years with people foreclosing and renters moving in, fights in the streets, police every night, loud parties and the schools have gone to crap. So we decided it was unsafe to live there any longer and put the house on the market for what was owed. But after the summer was up and school was starting for the kids in the new city we are now living we had to up and leave, time was up.
My question is, can Citi decide that I am not insolvent enough for their liking and force me to keep the house (not take it back) or something worse? The insurance is about to lapse and the winter taxes are due soon and calls to them are met with the standard we are still reviewing your information. I am starting to think I shouldn't have replied to the sticker on the door and just let them forcefully take it back and foreclose on it. From what I gather as far as my credit is concerned, there isn't much difference between "a deed in lieu of" and a full out foreclosure anyway.
Any info would be greatly appreciated. Thanks in advance.

cg123 · 11-11-2009, 06:58 AM

Your story sounds exactly like ours. And I mean exactly. We were working with Bonnie Farrell in the short sale department. Last Friday she sent our file to the closing dept. for a deed in lieu. We were told they are 2 to 3 weeks behind.

We are moving out of the house in 2 weeks. We have a rental that we can go to. It is not connected to Citi at all!

I am not very hopeful at this point....after reading all the posts...that a deed in lieu will happen. But as you stated what's the difference between DIL and a full blown foreclosure anyways....we just want out!

Good luck with yours.....will keep you posted!

10-28-2009, 09:25 PM	#1 (permalink)
drweb Junior Member Join Date: Oct 2009 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Might Citi not take back house? Hello, I don't know how unique my story is or not but I haven't found any similar stories in reading a few pages of this sub-forum so here goes... In early September after 4 months of non-payment of our mortgage with Citi, we left the house and relocated within the same state. Every couple of days we would make the drive back to pick up more stuff and to get mail and check the property and keep it mowed and swept. On mid September we found a sticker on our door stating the house was abandoned and that if they didn't hear from us within a couple of days they would re-key the house so they could protect their investment and winterize the property. That was actually fine with us. I called and let them know I had an appointment with the utility company in a couple of days to turn off the gas and electricity and that they were more than welcome to have their home back. We were 15 years into a 30 year mortgage with about $15K in equity and no other mortgages or loans on the house, balance roughly $48K. I was told by the Citi rep that they I could have a deed in lieu of foreclosure but I would have to go to the Citi mortgage site and fill out the mortgage assistance paperwork so they could approve it. I told the girl I was not interested in assistance, we were gone and had no want or desire to keep the house. She said that was fine but this was standard operating procedure. Fine. So I filled out the forms and faxed the requested last two years of tax returns. I am employed and make OK money but my hours have been cut back this year and my wife hasn't worked in years while raising the kids and we are in CC debt around $15K. We dropped $10K cash this year redoing the bathroom and living room trying to make it more sellable and after 4 months on the market, not so much as one bite. This was all of our savings, we gambled and lost. I thought someone would buy it for the ridiculously low asking price but no. The neighborhood had gotten bad over the past few years with people foreclosing and renters moving in, fights in the streets, police every night, loud parties and the schools have gone to crap. So we decided it was unsafe to live there any longer and put the house on the market for what was owed. But after the summer was up and school was starting for the kids in the new city we are now living we had to up and leave, time was up. My question is, can Citi decide that I am not insolvent enough for their liking and force me to keep the house (not take it back) or something worse? The insurance is about to lapse and the winter taxes are due soon and calls to them are met with the standard we are still reviewing your information. I am starting to think I shouldn't have replied to the sticker on the door and just let them forcefully take it back and foreclose on it. From what I gather as far as my credit is concerned, there isn't much difference between "a deed in lieu of" and a full out foreclosure anyway. Any info would be greatly appreciated. Thanks in advance.

11-11-2009, 06:58 AM	#2 (permalink)
cg123 Junior Member Join Date: Nov 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Might Citi not take back house? Your story sounds exactly like ours. And I mean exactly. We were working with Bonnie Farrell in the short sale department. Last Friday she sent our file to the closing dept. for a deed in lieu. We were told they are 2 to 3 weeks behind. We are moving out of the house in 2 weeks. We have a rental that we can go to. It is not connected to Citi at all! I am not very hopeful at this point....after reading all the posts...that a deed in lieu will happen. But as you stated what's the difference between DIL and a full blown foreclosure anyways....we just want out! Good luck with yours.....will keep you posted!

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