Waiting 6 mo for FINAL approval..now Citi requests tax returns. - Mortgage Forum

ljh81 · 02-09-2010, 12:42 PM

I initially applied for a Loan Modification in April 2009. I was pre-qualified in August (Monthly Payment reduced from $1901 to $1398 w/3.88% interest rate for 5 years), I sent all the necesary docs (tax returns, pay stubs, personal financials, etc.) which they requested via FedEx, and have been making my trial payments ever since on a timely basis.

I received a package from Citi today requesting my tax returns for 2007, 2008 and 2009. Has any one else had to do this?

Evan Bedard · 02-09-2010, 12:48 PM

Quote:

I initially applied for a Loan Modification in April 2009. I was pre-qualified in August (Monthly Payment reduced from $1901 to $1398 w/3.88% interest rate for 5 years), I sent all the necesary docs (tax returns, pay stubs, personal financials, etc.) which they requested via FedEx, and have been making my trial payments ever since on a timely basis.

Is the trial period for the HAMP program?

ljh81 · 02-09-2010, 12:50 PM

Yes, it is the HAMP...

cnd5v1 · 02-09-2010, 02:17 PM

Initially did u not sign the 4506T form which gives them permission to contact IRS and get copies of your past tax returns. I read someone that they can go back as far as 4 years. I think that is one of the mandatory forms that must accompany all HAMP applications. Not sure if they are using that for inhouse. Look thru your copy of your paperwork and see if you u did send that in. They are trying to verify income and see what was reported to the IRS.

lifeslessons · 02-09-2010, 02:36 PM

Yes, we also had to send in more tax returns just back in Nov. before our package was completed to go to underwriting...we also filled out the 4506T form, but were told that when we applied back in April of 09 as well they were not sending for the tax returns...so it is just part of the norm...I would rather have a complete package going into underwriting then have them have to stop and request more docs. just making the process take longer than it has to...

ljh81 · 02-09-2010, 02:41 PM

Agreed, lifeslessons. I also completed a 4506-T form with my intial submission of documents. While I didn't expect it to be easy, this whole process is frustrating when Citi asks for more documents months down the road!

lifeslessons · 02-09-2010, 03:04 PM

ljh81 , don't I know it...LOL.. it has been just about 11 months for us...they asked us in Nov. for it and I was sick of hearing we need one more thing...but I am glad that we did send it all in..I know that our package was not missing anything thanks to the person that we were working with in Loss Mit. when it went to uderwriting in Dec.
it will take time , but it will all work out...best of luck...

Evan Bedard · 02-09-2010, 03:07 PM

I would definitely make sure to send them any information that they are requesting. Its much better to be safe than sorry..

lifeslessons · 02-10-2010, 08:46 AM

ljh81, Now see, today I just got an email asking for my 2009 . 1099 because I am self employed and they prob. want to make sure that things have not changed much for us...so see we are what we were told to be just days weeks away from the perm. mod...so you just never know, what and when they will need more docs....just thought I would share that with you....will keep you updated as we go...

timmywit · 02-10-2010, 09:39 AM

I got a request from BoA to send in my 2009 tax returns. I was still waiting on documents to be sent to me so I can complete my tax returns. I then got told later as my file was approved in underwriting it would not be necessary.
If I where you I would just send it in soon so they dont have the excuses you did not send it the required docs.

oneortwo · 02-10-2010, 09:49 AM

Hi ljh81,
If I were you,I would questions the Hamp again. Since we all applying for Hamp program and if I didn't mistake we mostly start it with 2% interest rate for 5years... and continue 1% up every year. And got the life long fix interest rate.

That's what I have right now, hopefully they (Citi) will make the final decision soon on me...I am Just waiting on the final approval!!

ljh81 · 02-10-2010, 10:30 AM

Thanks everyone for your advice and personal experiences. I do plan on sending Citi the 4506-T again (it just seemed coincedental since I literally JUST filed my 2009 taxes 2 weeks ago & received a refund). I know this is all just protocol, but you'd think their system would run a little smoother.

Good luck to you all!

lifeslessons · 02-10-2010, 10:50 AM

I just called and changed our date to next week to have our taxes done ...we were not scheduled to go until the end of the month...but I want to get them the 1099 as quick as I can.... maybe we will all get good news soon...

ljh81 · 02-11-2010, 12:07 PM

FOLLOW UP:
I had a message today from Mortgage Outreach Services, saying they needed more documents and are sending a field agent to my home (what?!?). I called CitiMortgage to see if Mortgage Outreach Services was associated with them. They are in fact a third party who assists them. So I called MOS to inquire about the voicemail. Get this...
They told me that I DO NOT need to send back the form 4506-T (as they already have it in the package I sent in August 2009...DUH). And that they do not need to send a field agent to my home, they are not sure why the message said that.
One thing they DID request was my most current 30-day bank statement to be faxed to them.
Everything just seems so confusing with Citi!

Momof4kids · 02-11-2010, 10:12 PM

lifelessons:

Are you still with the Outreach services or is your paperwork back at Citi? I ask because I keep being told that all my paperwork is in and I am back at Citi. They (Citi) say I should hear something by March 1st and that no further information is needed. Will the underwriter ask me for my 1099? I too am self employed. I don't know if sending in more doc's now will just confuse/delay them.

davephx · 02-12-2010, 12:31 AM

Oh great.

Tax returns are not due till 4/15 or can be extended to 10/15. This is totally unreasonable. Under HAMP directives I submitted a P/L that was current back in September. The Directives say once you verify income no more verification is needed. Also send 2007, 2008 signed returns and 4506-T

Verified income in 9/09 was very close to both what trial was set up for and 2008 (big drop from 2007). 1099's are worthless for us with lots of business expenses since income is suppose to be NET from self employment not Gross from 1099's at least if they are following the HAMP directives.

Another thread says Outreach Serivces now taken inhouse.

davephx · 02-12-2010, 12:48 AM

ljh81

Are you Fannie owned or do you know who investor is?

I think the no more verification of income may have been an efannie directive not non GSE's but don't recall for sure.

Does your status in Citi site say anything about needing tax return? Mine still says in final review should be 3 days (has said that for weeks).

Momof4kids · 02-12-2010, 07:18 AM

I am Fannie Mae invested as well.

I see this Announcement: https://www.efanniemae.com/sf/guides.../2009/0905.pdf

but it is dated April 21, 2009.
Documenting Gross Monthly Income
All parties whose income was used to qualify for the original mortgage note must submit income documentation which must not be more than 90 days old from the date HAMP eligibility is determined.
The borrower must provide certain financial information to the servicer as outlined below.
If the borrower is self-employed:

A signed copy of the most recent federal income tax return, including all schedules and forms, if available,
A signed IRS Form 4506-T (Request for Transcript of Tax Return),
The most recent quarterly or year-to-date profit and loss statement for each self-employed borrower, and

Other reliable third-party documentation the borrower voluntarily provides.
Note: For both employed and self-employed borrowers, if the borrower does not provide a signed copy of the most recently filed federal income tax return, or if the Compliance Agent (described in the Compliance section) so requires, the servicer must submit the Form 4506-T to the IRS to request a transcript of the return.
--------------------------

Momof4kids · 02-12-2010, 07:57 AM

I am Fannie Mae invested and self employed too.

I see the Announcement from April 2009 https://www.efanniemae.com/sf/guides.../2009/0905.pdf

Page 9 states
"All parties whose income was used to qualify for the original mortgage note must submit income documentation which must not be more than 90 days old from the date HAMP eligibility is determined. "

Also Page 9 lists required documents for self employed (I don't see 1099 listed but they have that caviat of "third party documents".

See here:
If the borrower is self-employed:

A signed copy of the most recent federal income tax return, including all schedules and forms, if available,
A signed IRS Form 4506-T (Request for Transcript of Tax Return),
The most recent quarterly or year-to-date profit and loss statement for each self-employed borrower, and
Other reliable third-party documentation the borrower voluntarily provides.

Note: For both employed and self-employed borrowers, if the borrower does not provide a signed copy of the most recently filed federal income tax return, or if the Compliance Agent (described in the Compliance section) so requires, the servicer must submit the Form 4506-T to the IRS to request a transcript of the return.

Is there an updated Announcement by Fannie Mae regarding document requests? I thought I heard that there was; to help expedite the process. If there is, can you post the link? Or, at least, let me know the date so I may research it?

I call every 3 days and am repeatedly told that all my paperwork is in and I should know by March 1st. My online message still reads: Your request is in process, please allow up to 30 days...etc, etc.

I was told last week that I am heading to underwriting, do/will they ever contact me? Or will I just find out if the mod is approved or denied?

davephx · 02-12-2010, 08:47 AM

90 days old from the date HAMP eligibility is determined

Eligibility was determined when put on trial....long ago. I am sure there was a latter directive that specifically said if within 90 days of starting trail you do not need to confirm again but don't have it handy.

Social Apocalypse · 02-12-2010, 08:53 AM

Hopefully the NEW guidelines that become effective June 1 will put an end to some of this shell-game crap. It's just them trying to find ONE excuse to deny you by saying you didn't send something in. They HAVE the 4506-T, and can and SHOULD request the tax returns themselves, and are SUPPOSED TO. The guidelines are explicit that they are trying to STREAMLINE the process. The new guidelines are MUCH better, since they cannot START the timeline (which is LIMITED to three months and NO MORE) until they have ALL documents in hand. Then there is NO reason for them to request more. If you can wait until June 1, Do. MUCH better guidelines. I am SURE the banksters are having 24/7 meetings to strategize loopholes around the new guidelines. They really do seem much better, I am going to try and hold out for June 1.

Momof4kids · 02-12-2010, 09:02 AM

Okay, I will look for it. I will copy a link for you if I find it. At least my internet searches keep me occupied since cannot seem to relax.

My Loan mod is crutial. I had to Quit Claim Deed my husband off and I am supposed to Assume the Loan before our next court date MARCH 1st!!!! yikes!!

I don't want to let him (the x) off easy...especially if I won't be able to afford it after I do. He left us high and dry in July. Never made another payment on anything. But, gosh, he sure takes the kids to a bunch of fun places. Grrrr.

BTW- My doc's were submited on Dec 12th. My trial started on Nov 1st but I needed to get a child support order first, so Citi suggested I send it all in a once to avoid confusion. Mortgage Outreach Services sent everything back to Citi in January. Said my paperwork was complete. Last week I was told I am just waiting for final approval. Do you have an idea of what kind of time frame I should expect?

They keep saying I should be done by March 1st???? Seems to good to be true to me.

davephx · 02-12-2010, 09:16 AM

Actually its the sending in P/L with the Trial Period Plan Agreement it was part of that package.

Announcement 09-05R
When the borrower returns the Trial Period Plan and related documents, the servicer must review them to verify the borrower’s financial information and eligibility.

Announcement SVC-2010-03 February 04, 2010
Evidence of Income
The Initial Package must also include the borrower’s income verification documentation described in the “Borrower Income/Asset Documentation and Verification of Eligibility” section of this Announcement. The income evidence and financial information provided by the borrower may not be more than 90 days old as of the date the Initial Package is received by the servicer.

Note all refers to within 90 days of initial package etc which in my case was sent back in July or August. Nothing about having to update.

Momof4kids · 02-12-2010, 09:41 AM

Thank you for the information.

I just called Citi (yes, again) and Dorothy said all my paperwork is in and I will receive my new loan agreement - if all goes well- in approx. 2 weeks. She too stated that becauce I submitted my doc's through Mortgage Outreach Services, that no additional documentation will be requested. I would assume that means updated as well. That is the 7th person overthere that has said the same thing to me.

I hope to read soon that there is great news for you!!

lifeslessons · 02-16-2010, 04:18 PM

Hi momof4kids,
citi requested the copy of my 2009 profit or loss and I just sent it in yesterday and today they noted on our loan account online that we had been approved and to expect the package with final docs in 5 business days...so right up to the end we had to send in more updates... now we will have to see what the package contains..
we also started in april of 2009..so maybe you are close to the end as well...