Citi "Modification" offer, Same unaffordable Payment - Mortgage Forum

Crstl · 11-14-2009, 11:59 PM

I don't think I believe in Citimortgage or fairies anymore. I bought the whole "they don't want you to lose your house" routine. But now I think they really do. I'm so discouraged and wonder if i've come to the end of the line for my little house.

Long story short:
lost job for 8 months fell behind on FHA (6%), no help from citimortgage
December 2008 - Finds much lower paying job and discovers NACA who gets foreclosure postponed but gives me the runaround (along with various persons at Citimortage Loss "mitigation") for 11 months.

Last week,thanks to contact information from these forums I finally get assigned a counselor "Gary" at Citimortgage in AZ who actually sees the NACA submission and will call back after he reviews. I finally feel hopefull after over a year.

2 days ago - Sally Gary's "Supervisor" calls me with an "offer" - Traditional modification. Deliquent amount put into principle. Only a 1% reduction in interest rate. New payment = SAME PAYMENT that I CAN'T AFFORD! Before I could complete the question about any other options she was saying "no". Fast-talking, abrupt and left me feeling she was rushing me into this offer.

I ask Sally at Citimortgage about FHA-HAMP, what about NACA, what about the HUD approved counselor's request to lower my payment?????

Sally at Citmortgage replies, NACA has no influence (yes, she said this), you're too far past due for HAMP, because this is an FHA loan you have no other offer, this is is our one and only offer, take it or leave it! Oh and come up with $1600 in 2 weeks.

Any direction at all will be beyond appreciated.

Crystal

davephx · 11-15-2009, 02:33 AM

If its FHA Fannie is not involved but instead probably GINNE.

Without the back payment issues do you qualify under the 31% test but iwth back payments rolled up

Gross income x 31%
Take out taxes and insurance.
Remaining balance as to amortize current mortgage with rollup of back payment at 2%/40 years.

There are a couple other sticking points with FHA-HAMP especially:

The back end debt to income ratio must not exceed 55 percent and is defined as the total monthly mortgage payment plus all recurring monthly debt divided by the mortgagor’s gross monthly income (the “Back End Ratio”)

Crstl · 11-15-2009, 04:45 PM

I'm so appreciative someone responded, but I don't grasp your reply. Can you or someone explain it to me in slightly more simplistic terms?

Crstl · 11-15-2009, 06:58 PM

Forgot to add that I net $1660 per month and they're offer equals a payment of $1046 ($834 plus taxes and ins).

davephx · 11-15-2009, 08:11 PM

31% based on Gross employment income.

But your over 12 months delinquent is a FHA-HAMP deal killer which is why its seems there doing a inhouse "traditional" mod.... See my other posts on how FHA-HAMP works which is VERY different from regular HAMP unfortunately.

Crstl · 11-15-2009, 08:22 PM

Thanks Dave. Got the info on the FHA-HAMP. I had read that info at HUD and got that part.

Here's what I'm wondering: I gross $1798, why is Citimortgage offering a mortgage payment of what........ 58%???

SillyWorld · 11-15-2009, 08:47 PM

If you call back again they will tell you something different, they always have, thats why many of us other peeps go another route, and they say NACA cannot make a change well if there was scamming on the orriginal loan they will bargin once NACA brings that toi there attention

Crstl · 11-15-2009, 09:28 PM

Well, Citimortgage has totally disregarded NACA except for the ironic fact that they got my financial documents from the NACA submission. But the actual request for restructure from NACA she practically laughed at!

So much for NACA's influence, agreements or whatever they're supposed to have with Citi.

Just the same, I have sent e-mails containing Citimortgages un-modified "modification" offer to the nine different NACA addresses I have (which I've never got responses from) and left a voice message with NACA what's his face guy that everyone says call.

I'm going to bed

davephx · 11-15-2009, 10:38 PM

It is clear that NACAs "iron clad agreements" as they tout in their orientation are not what they are represented as. Now they have at least admitted they only can help like 20% of people that use them to try and save the dream even though it seems more like 90% leave in joy and relief because they have a "solution". But that is only a proposal with no teeth to have accepted.

I would do as you are doing with NACA, not much else you can do but try and get NACA to try and pressure Citi. The hope we have is there are reports of NACA solutions getting accepted, just too few of them.

PRandall · 11-28-2009, 12:14 PM

Crstl,

I am in the same boat. FHA loan. I applied with NACA back in August (no word from them yet...last time I called, I was told my wait time would be 274 minutes...LOL...my phone wouldn't last that long). Went through Trial Mod with Citi back in April/May. Made all the payments and then they now are offering me a deal of about $80 less a month payment and reducing interest from 6% to 5%. My contact at Citi, Hubert, has been promising me FINAL paperwork for a long time now. I have yet to see it. He says the hold up is with FHA... Just talked to him yesterday and he said to call on Monday, if no docs. Well, Monday is also my due date (havent made a payment since August...told him no payment until I get documentation). In any case, Hubert also told me I needed to pay some large amount a long time ago. I said, if I had that kind of money, I wouldn't be asking for a loan mod. He has changed my due date several times, agreed to clear past due amounts, etc. Whether or not this will actually happen when and if the paperwork ever gets here...we shall see.

Good luck to you...wish I had BETTER news.

PRandall

Crstl · 12-11-2009, 10:32 AM

I promised to update:

I spoke to another rep at Citi (more cordial even though he repeated the same script) and have received the papers for this unaffordable loan modification from Citimortgage.

This representative of Citimortgage also did not recognize NACA as having any influence at all. Is Citimortgage aware that NACA even exists?

Oh yeah, they must because Citimortgage used my financials etc. from the NACA submission but ignored NACA's actual request.

It appears that NACA is just serving as Citimortgage's glorified Administrative Assistant. Which is oddly funny but very disappointing

I faxed these to NACA per their request and I'm waiting to hear from a NACA "Negotiator". Citi wants the paper and $1700 down payment by 12/15/09.

Stay Tuned

Crstl · 12-15-2009, 09:26 AM

The latest with NACA and Citimortgage:

My NACA online status has some pointless, erroneous "update".

It states that I've received an "offer" from Citimortgage of a "NACA Forebearance - 3 months" (Forebearance applies to unemployed which doesn't even apply to me) and contains some outrageous numbers way above my existing payment or above the modification offer. No start or end date, or any other details.

Didn't know whether to reject - so I selected need review. Hope to hear from a negotiator. I'll be leaving a message for poor Kevin Winn as well.

Crstl · 12-17-2009, 12:03 PM

Here's what appears on my NACA screen
Type: NACA Forbearance Term: 3 months
PITI: 212 PI: 838 Taxes: 236 Insurance: 0
HOA: 0 PMI: 53 Term: Rate: 0
Principal: Value:
Delinquent Interest: Late Fees: Late Penalties: 769 Unpaid Escrows: 3717
Servicer Comment:
Above is the initial proposal, and still needs to be sent to underwriter/investor for FINAL approval.

What that means as far as what exactly i pay and when escapes me.

I did not return those modification papers to Citimortgage by 12/15 and today Matt at Citimortgage called to say they are closing my case in loss mitigation. So I expect more foreclosure papers to follow closely.

I have called to speak with a negotiator as NACA instructed, but have not received a reply to phone or e-mail. Doing another round of trying again today.