I was just approved for the TRIAL PERIOD!

[dtabar]

I spoke with a representative at citi today regarding my situation and he told me that I'm approved for the trial period at $1,504 a month PITI. Of course, I'm excited, but after reading the posts here I'm kind of nervious.

My current payment on my first is $1,717 not including taxes and insurance. Plus a 2nd mortgage payment of $550. The $1,504 includes taxes and insurances. I am current on my 1st and 2nd mortgage and I havent had any lates. But here's the part the worries me:

Last year I made 90K (7,500 A Month). This year I'm on track to make $7,900 a month. I have other debts and real hardships that involve a death in the family and help my mother.

If they're doing the HAMP program then 31% of my gross is around $2400. Which is about what I'm paying now. They asked me what I made without overtime and I told them $5400 gross. Are they going off of the $5400?

Why did they lower my payment to $1504? Even if they we're going off of the $5400, 31% of that is $1,674. My house is upside down and I do have cc debt and an auto payment. Am I being modified on a different program? My loan is fannie.

Am I being taken for a ride here? I don't want them to deny my mod and slap me with a 90 day late on my credit report.

One more question, do they impound homeowners assoicate/insurance fee in my escrow account? Or do pay it seperate?

[dtabar]

By the way I owe $277K on my first and my property is worth around $290,000-$315,000. I owe 70K on my 2nd.

[SillyWorld]

HOA is suppose to be incluided, they also made me an offer I asked what if at the end of trial I was denied, they said well then you would owe a Balloon payment of the difference not paid, I also asked to have it in writing before I would agree they said no..I declined

[dtabar]

Thanks SillyWorld. Did they say you would have lates reflected on your credit report?

[SillyWorld]

I never asked but found out from all the others here yes they report you on a modified payment and thats only some, many have been also reported late when they never where, you have to know they want to play the game with you, they want you late then you are at there mercy, thats why I went to NACA.com if they get no deal then well I will be on my own never been late YET, getting hard very hard but I dont want to loose my home over there game

[heidi79]

something is off, if you were verbally pre-approved for the 1504 it's not based on either the verbal income or the actual income, the will look at last year and the year to date money you've made, the trial payments might be lower, but the final payments will be higher once they confirm the real income.

yes, you will be reported as late, the trial payments are held in suspense and not applied to the account, some others have said their payments have been shown as partial payments.

the only thing you can do is request that they don't report you at all during the trial period.

[dtabar]

something is off, if you were verbally pre-approved for the 1504 it's not based on either the verbal income or the actual income, the will look at last year and the year to date money you've made, the trial payments might be lower, but the final payments will be higher once they confirm the real income.

yes, you will be reported as late, the trial payments are held in suspense and not applied to the account, some others have said their payments have been shown as partial payments.

the only thing you can do is request that they don't report you at all during the trial period.

It sounds like I'm in a lose/lose situation here. They'll report me as late and when they review my gross they'll see that my current 1st is at 31%. And then I would assume I'm responsible for the rest balanced owed accrued over the three month trial period.

My 2nd is what's killing me. Is it best I cancel the 1st mod and just try to modify the 2nd?

I appreciate all of your responses and I think this is a great site to give moral support and find a wealth of knowledge.

[heidi79]

if your current mortgage payment is already at 31% of your gross income INCLUDING taxes and insurance, then you simply won't fit the guidelines, so yes a lose/lose. i think you have to send in a letter choosing to "opt out" of the plan, or simply don't make the lowered payments and don't send the paperwork back.

I'm wondering why you gave them a lesser income of what you actually earn?

Anyway, you can definitely try to modify the second loan.

[dtabar]

I gave them my gross income averaged from last year and this year. However, they rep asked me to give him my salary without any over time.

AHH..What a bummer. I was really hoping to lower my payment.

[lemaudit]

if the second loan is from an 80/20 talk to a bankruptcy attorney. If you're upside down there's a chance the 2nd is unsecured - if it is it's a no brainer. You either don't pay or declare bankruptcy. They can't collect and the first lien holder should know that.

your credit should be the last thing you're worried about.

[SillyWorld]

Or just simply call your 2nd make arrangements, they may offer a 2% 20 or 30 yr payback

[heidi79]

if constant ot is not a real part of your income, they shouldn't take it into account, because it's not gauranteed, but, if you have ot last year and this year on regular basis then they will definitely count it, they usually take the ytd gross income and divide by the amount of months into the year to come up with an accurate average.

[dtabar]

The 2% sounds good. Do you have any experience with that SillyWorld?

[SillyWorld]

2nd Mortgage's usualy have a hardship program, you would have top call them iup and see what they have to offer, I have seen on here Citi offer as low as a 1% even on HELOC they just freeze account make it like a normal loan payback, you may want to call the help number from your 2nd's Bill

[MyHAMP]

if the second loan is from an 80/20 talk to a bankruptcy attorney. If you're upside down there's a chance the 2nd is unsecured - if it is it's a no brainer. You either don't pay or declare bankruptcy. They can't collect and the first lien holder should know that.

your credit should be the last thing you're worried about.

Right now, he seems to have equity considering the balance of the first and the value of the property (see post #2).

It's close though and if the values keep on dropping, you could give it a try..

[lemaudit]

Right now, he seems to have equity considering the balance of the first and the value of the property (see post #2).

It's close though and if the values keep on dropping, you could give it a try..

ah, my bad. Good catch. I see you're still checking my math ;-)

[MyHAMP]

ah, my bad. Good catch. I see you're still checking my math ;-)

Hahaha...that's a good one.