Citi Traditional Mod Request After HAMP Denial

**Mermaid** · 11-11-2009, 09:47 AM

Due to paycut I applied for HAMP in June. HAMP request was denied after I made four trial payments (I was "prequalified in error" according to Citi, 1st mort pmt is right at 31%) so now I am trying for a Traditional Mod. I sent in all my financial info with a hardship letter to Citi (Attn: Connie Hollis-counsellor) via UPS Express Mail on 11/09. According to UPS tracker, the package was received morning of 11/10.

Of course I don't know what to expect & after the HAMP mess I trying to stay positive that I will get some help. My gross is $3830, net is $2797. After cutting ALL unnecessaries, I am running in the red each month about $250. No savings left, no nothing to help in case of emergency, etc.

I have 1st ($168K @5.25/30yr) and 2nd ($68K @9.14/30 yr), both Citi/Freddie loans. 1st pmt is $1084 with escrow, 2nd pmt is $562. I'm in CA, house is upside down about $90K.

Anybody have predictions as to the help I might get, or what I can expect next from Citi?

Thank you all.

**Evan Bedard** · 11-11-2009, 10:21 AM

Hi Mermaid,

Anybody have predictions as to the help I might get, or what I can expect next from Citi?

I have seen many traditional modifications that were just as good as HAMP mods if not better. I would request a 3-4% fixed rate for the life of the loan. This process may go by a little quicker since you will not have to go through the dreaded trial period..

**Mermaid** · 11-11-2009, 10:56 AM

Evan, do you think they will consider combining my 1st & 2nd at the 3-4% rate? Do they do that? I didn't request any specific terms in my hardship letter, just something that "would be of benefit to both Citi & me" meaning that I will have no choice but to foreclose unless they come up with something reasonable.

Thank you Evan.

**Evan Bedard** · 11-11-2009, 11:38 AM

Evan, do you think they will consider combining my 1st & 2nd at the 3-4% rate? Do they do that? I didn't request any specific terms in my hardship letter, just something that "would be of benefit to both Citi & me" meaning that I will have no choice but to foreclose unless they come up with something reasonable.

I'm sorry but I have never heard of any lender allowing a first and second to be combined into one. The best you can do is ask for the lowest interest rate possible on both loans. Except for your 2nd mortgage, you can actually settle this mortgage for about 5-20% of the remaining balance. But I do not know if this is suitable for your situation..

**Sunbeam** · 11-11-2009, 02:18 PM

Hi Mermaid,
I was in your situation. You got turned down for HAMP because your DTI of your gross to your first mortgage is 29%. When you COMBINE your first mortgage payment with your second mortgage payment, your DTI is 42%....OUCH. No wonder you are hurting.

My DTI on my first was 28%, but combined with my 2nd, it was 45%. I was turned down for the HAMP by Citimortgage with Freddie as my lender. I then pushed and pushed for review and was finally offered a traditional modification on the first which puts me at 15% DTI on my first and when combined with my 2nd, my DTI is 25%. I could not be happier. Hang in there....I'm telling you, the HAMP is great for some, but for me not qualifying made a difference of $500.00 per month in my favor.

**zarni0** · 11-12-2009, 10:02 AM

I have FNMA as the investor of my citi issued mortgage.
I was initially told for HAMP an investor owned property needs to be 90 days delinquent to apply for that program. After going back and forth with Citi for more than a month about 30% of their reps say this is true and about 70% this is false.
It seems that if I trust the 70% FNMA does not do modifications on investor owned. Also I am told now the only option would be traditional modification.

Also it is a little unfortunate as I do have savings to cover the next few months but I did not pay last month to get a head start on this but now I am going to end up with a bad credit report based on what I heard from Citi seems like and looks like I couldn't even apply for it.

Could somebody please tell me if this 90 day delinquency is a requirement and if not what are the requirements for a traditional mod with Citi as that seems to be the only alternative to HAMP? I have burnt hours and hours on this and seems like every other rep at Citi has a different idea about how it works.

thanks!

**Mermaid** · 11-12-2009, 01:39 PM

Citi counselor left me a message on voicemail. She said they are sending a proposal to the underwriter on the 1st mortgage (did not say what terms) and they are unable to do anything on the 2nd because it is current. Not good news. Doubt the mod on the 1st will be enough to help me.

**davephx** · 11-12-2009, 03:59 PM

The requirements for imminent default are harder to meet than if you are at least 2 payments late that is the only difference.

Fannie is about hte best to have as an investor from all I can tell, including the Citi person that posted here that wished he had Fannie as investor.

**Sunbeam** · 11-12-2009, 07:12 PM

Originally Posted by zarni0

I have FNMA as the investor of my citi issued mortgage.
I was initially told for HAMP an investor owned property needs to be 90 days delinquent to apply for that program. After going back and forth with Citi for more than a month about 30% of their reps say this is true and about 70% this is false.
It seems that if I trust the 70% FNMA does not do modifications on investor owned. Also I am told now the only option would be traditional modification.

Also it is a little unfortunate as I do have savings to cover the next few months but I did not pay last month to get a head start on this but now I am going to end up with a bad credit report based on what I heard from Citi seems like and looks like I couldn't even apply for it.

Could somebody please tell me if this 90 day delinquency is a requirement and if not what are the requirements for a traditional mod with Citi as that seems to be the only alternative to HAMP? I have burnt hours and hours on this and seems like every other rep at Citi has a different idea about how it works.

thanks!

There is no specific requirement for in house unless your specific investor has this guideline. Since you are getting conflicting information, I would suggest you write to the office of the president and your congressperson detailing the conflicts in advice you are getting from Citi. State you would like to have straight and accurate answers to your question and that you are are requesting a modification, but getting bad info is not helping your process. You do need to document your hardship and have a detailed monthly budget. Your negotiator will submit it to your investor who has final yeah or neah. Of course you should submit a request. What have you to lose?