Citibank Loan Modification Approval I think ?

[tiredofgames]

I just received news from Citibank that I was approved for a Supplemental loan modification but was denied for a HAMP loan modification because my outstanding loan balance is $865k and exceeds the maximum loan amount for a HAMP loan. This was after approx 10 months since starting this process. Under the supplemental loan modification I was told the lowest possible rate I can get is 4% but this would not be determined until after I successfully complete 3 months of timely trial payments. Now I've read nothing but nightmare dissapointments from others on this forum who successfully completed the 3 months of trial payments but either only found their loan had been sold to another bank or Citi only denied them several months later for some stupid reason. Knowing this I didn't know if I should be worried or happy about this recent news of being approved. I currently has a interest only loan fixed at 6.375% that is scheduled to adjust in 2 years. We cant afford our current monthly loan payment which is $4670 due to my part time job change. We are about $100k underwater. Our current loan is interest only. The monthly trial payment is $4037 which includes principle, property taxes and insurance. Now this not permanent but I'm praying it will be close to this payment.

Being more worried I called Citibanks home assitance dept and asked them more about my approval and asked them about the likelihood my loan would be denied after 3 months of successful timely payments or if my loan would be possibly sold. The representative explained to me that I should have nothing to be worried about as long as I make the 3 timely payments. She said that a lot has changed with their internal processes at Citi and in the past they would grant premature approvals and have customers start on a 3 month trial payment plan before they had the chance to review the customers financials situation whereas now they do a thorough review of each customers financials before granting them the 3 month trial payments and a permanent loan modification is made shortly after the 3 months. She also reassured me that since this was a Citibank Supplemental program that my loan would not be sold to another bank. Now I wasn't quite understanding the rational of her reasoning but took it for what it was worth. I guess I just wanted to hear good news. This is my 2nd attempt modifying my home loan with almost 2 1/2 years in the total process. I'm just so tired of the rollercoaster of emotions I've experienced from the games they play.

Does anyone know how legitimate this Citi Rep's explainations are to my concerns or has anyone else had a similar supplemental approval? I'm just so tired of all the games and unlawful practices that Citi seems to have when processing loan modifications. You would think that enough people have filed lawsuits against Citibank for all these unlawful practices that some kind of enforcement would prevent this from continuing today. I work for a Big law firm as a part time financial analyst and plan to definately take legal action if a permanent modification isn't approved. I've spoken to several in house attorney's and partners that would be happy to help me but I've also considered walking too if this modification doesn't go through since I'm underwater and just tired of this crap.

Thanks in advance for any input on my post.

[troubleinriverside]

i have a simiar situation with a Citi 1st mortgage that is Int only, current rate 4.75%, but I expect it to adjust down in june a couple of percentage points lowering my payment. I have not been late, but I will need to Mod this loan within 3 1/2 years. So i'm keeping a close watch on those people with Citi loans. My concern is how long should I wait ?? Seems like I have some time to go, and the cards are in my favor right now with the rate adjustment downward.

[tiredofgames]

i have a simiar situation with a Citi 1st mortgage that is Int only, current rate 4.75%, but I expect it to adjust down in june a couple of percentage points lowering my payment. I have not been late, but I will need to Mod this loan within 3 1/2 years. So i'm keeping a close watch on those people with Citi loans. My concern is how long should I wait ?? Seems like I have some time to go, and the cards are in my favor right now with the rate adjustment downward.

I would not wait at all. I guess you dont realize how almost impossible it is to get a loan modification and to think you have something in your favor is wrong. Applying for a loan modification is a Extremely LONG process! Do not believe anyone from Citi who tells you it will take a few weeks or less because they are lying to you. They tell you what you want to hear and do the complete opposite. They will lose your file , never look at your file and just say they are "currently reviewing your file and that they will get back to you" then a year later they will tell you they need a new statement or form and the review continues. My advise to you is to get started right away. Citi has millions of requirements and thats the biggest challenge of knowing what they require to get approved. You may think you have a lot in your favor because you cant afford your loan, lost your job, have a reduction in your income, but Citi will have a reason why your not approved. Just read all the threads of Citibank Loan modification attempts on this site and you will understand what your up against. It takes almost a miracle to get approved which is why Im not getting my hopes up yet.

[troubleinriverside]

I had in mind doing a Rest Report when I am ready. and I was planning on trying to get a mod without being behind on payments. A friend of mine received an unsolicted Mod in the mail from Wells Fargo a couple of months back, he was not late, but his home had dropped in value. he signed up for it, and they dropped has rate 1% to make it 4%, 30 year fixed.