When should I talk to Citi? - Loan Modification Forum

CroMag · 10-29-2009, 08:18 PM

I have a 1st with CW/BOA ($330k) and a 2nd with CitiMortgage ($108k) on my primary residence (worth about $400k). Both were discharged in a Chapter 7 in October 2008. We have been riding these mortgages through by continuing to keep them current up until this month. Over the past year we have realized that while we can BARELY squeak by every month paying them both, there will be no way to ever have a safety net or make any retirement savings unless we change something. Either move out or stay with lower payments. I believe a viable strategy to try would be to try to get Citi to settle the 2nd and save the $900/month. After reading this forum it appears they are reluctant to talk settle unless we are selling OR the 1st is foreclosing. This is why I have stopped paying them both. I figure that once the 1st starts the foreclosure then Citi will be willing to settle and then I can just cure the foreclosure on the 1st (I have 120 days in Colorado) and we can continue living here without the 2nd mortgage. Let me know if anyone finds a glitch in my logic.

My main question is...should I even bother talking to Citi before CW/BOA files their NES (foreclosure filing term for Colorado)? I am guessing I should just stay silent until that day and then make the call to Citi. Anyone think I could convince them to settle prior to that foreclosure filing by CW/BOA?

For icing on the cake I am also going to try for a mod with CW/BOA in the 1st, but my main goal is to wipe the 2nd off the property. My credit rating is of no importance since these two loans were already discharged in a BK7.

Thoughts?

10-29-2009, 08:18 PM	#1 (permalink)
CroMag Junior Member Join Date: Oct 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	When should I talk to Citi? I have a 1st with CW/BOA ($330k) and a 2nd with CitiMortgage ($108k) on my primary residence (worth about $400k). Both were discharged in a Chapter 7 in October 2008. We have been riding these mortgages through by continuing to keep them current up until this month. Over the past year we have realized that while we can BARELY squeak by every month paying them both, there will be no way to ever have a safety net or make any retirement savings unless we change something. Either move out or stay with lower payments. I believe a viable strategy to try would be to try to get Citi to settle the 2nd and save the $900/month. After reading this forum it appears they are reluctant to talk settle unless we are selling OR the 1st is foreclosing. This is why I have stopped paying them both. I figure that once the 1st starts the foreclosure then Citi will be willing to settle and then I can just cure the foreclosure on the 1st (I have 120 days in Colorado) and we can continue living here without the 2nd mortgage. Let me know if anyone finds a glitch in my logic. My main question is...should I even bother talking to Citi before CW/BOA files their NES (foreclosure filing term for Colorado)? I am guessing I should just stay silent until that day and then make the call to Citi. Anyone think I could convince them to settle prior to that foreclosure filing by CW/BOA? For icing on the cake I am also going to try for a mod with CW/BOA in the 1st, but my main goal is to wipe the 2nd off the property. My credit rating is of no importance since these two loans were already discharged in a BK7. Thoughts?

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