I am looking for some advice on settling my second. I have already read the thread on settling seconds, but I deviated from the plan slightly. My house is in Utah and it was purchased with an 80/20 from Aurora/Citi for about $500k. My house is now worth less than my first mortgage, ~400k, and my second is completely underwater. I was able to mod my loans but just found out that I am going to see a reduction in income of about $1000 net per month, which is putting me in a bind.
I stopped paying my second three months ago and ignored calls from Citi until they stopped calling and sent a letter letting me know that they would start sending people out to make sure my house was occupied and that it was being taken care of, as frequently as they would like and charged to me.
I emailed Frank Eliason, because it concerned me that I would be digging into a hole. Got a call from Citi's Exec Response Team and started the overall process. Now they are asking me for a bunch of documentation, financials, hardship affidavit, etc, when I was talking to the rep about settling the loan for less than owed. I remember reading in the 3700 post blog that they did not need financials to decide that the house was way underwater and that they were better off settling.
Do I need to just ignore them again? Did I make a mistake by deviating from the plan and reaching out to Frank Eliason?
Did you all have the same experience? When you settled did you have to disclose all of this? I dont mind giving the info, but it smells of the modification process with the endless submission of documents not received and all the run around I had to go through.
I appreciate any input you might have!
Thank you so much and I will keep you posted!