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.