Do I have to kill my credit for a Loan Mod??????

[smallie]

Hi all,

Loan originated 10/2007 for $670,000 with RBS (Royal Bank of Scotland)
Terms: 30year 5/1 ARM interest only payments.

CitiMortgage assumes 5/1 ARM loan approx. 2/2009

CitiMortgage modifies the loan on 6/2009 and makes it a 28yr. 4 mo. fixed rate loan with and introductory rate of 3.4% till 6/2011 then 4.78% for the remaining life of the loan.

3.4% payments: $3720.57 till 6/2011
4.78% payments: $4199.02 till 11/2037

When you think of the mortgage crisis…..I’m the guy that walked into this loan unemployed and used a business name and “stated” income to qualify for financing. My wife had a job in which she earned only 56K/yr.

We had no business taking on a loan that size but the house had not been completely built and we needed to finish it before we sold it. And a mortgage broker convinced us that this would be a way to not lose everything at the time. I quickly got a job after we signed the papers.

Long story short….we still own the home, it is still not finished and my wife and I work full time and had been doing ok with payments until last September when my salary was cut $2000.00/mo.

I’m at a loss here……I started working with Citi one year ago when they raised my payment $600.00 to $4200.00/mo.

At the time I was able to make the payment due to the amount of overtime I had always worked since we first got the loan in 2007. I have not worked overtime since September/2011 and these loan payments are 40+% of my wife and I gross income.

After another round of sending them income statements, tax returns, hardship affidavits….etc, etc…..they still have not offered a mod. I have exhausted an 11.5K personal line of credit to keep my loan current. (This may have been foolish).

I have not missed a payment in my 18years of home ownership (3 different properties).
They have given me till 5/16 of this month to come up with the $4200.00. I do not have it and am maxed out credit wise everywhere else.

Every week I call Citi….they tell me that the underwriter is still looking at it. It’s been a year!!!!!

What the hell?????????

They have forced me to be delinquent. And today she tells me that the underwriter gives priority to those in foreclosure.


Is that what it is going to take????

I have to ruin my credit in order for them to help us???

I know they modify Jumbo loans. They did it for me before. (Terms)

If I could just get them to bring it back down 600.00. I’m confident my wife and I could handle it. Although now I’m even further behind due to my stupid idea of using my personal LOC to keep current.

Zillow says the place is worth 724,000. We owe $631,000 w/ citi and $30,000 on a HELOC w/ BECU

But how do you sell a half built house????

2000 S.F. (finished) + 1000 S.F. (studded walls and wires) = 3000 S.F

Any suggestions…..very much appreciated

Be Well,
Todd

[Evan Bedard]

Is that what it is going to take????

I have to ruin my credit in order for them to help us???

I know they modify Jumbo loans. They did it for me before. (Terms)

If I could just get them to bring it back down 600.00. I’m confident my wife and I could handle it. Although now I’m even further behind due to my stupid idea of using my personal LOC to keep current.

Zillow says the place is worth 724,000. We owe $631,000 w/ citi and $30,000 on a HELOC w/ BECU

Welcome to the forum.

I doubt Zillows estimate is accurate if the property is not completely finished being built.. If you ordered an appraisal you would have a much better idea of your homes true value..

When you received a modification back in 2009 was it a part of the Home Affordable Modification Program (HAMP)? It is not true that you have to be delinquent on payments to qualify for a modification as we have many members here who have been successful doing so.. It's just a matter of getting attention brought to your account since it is current they are in no rush to complete the process.. Here try contacting Mike or Frank through the emails below, they are both also members here in the forum and have been able to help assist many Citi borrowers here and should be able to help get your account escalated..

Michael Cardace
michael.cardace@citi.com

Frank Eliason
frank.eliason@citi.com

[smallie]

Dear Evan,

Thank You so much for the prompt response. No....the 2009 Loan Mod was not part of the HAMP program and was something Citi did internally I think????

Yes....I believe the Zillow # to be inflated because I think they base it on what I pay in property tax each year. (I always appeal my taxes due to the fact my home is still under construction).

I will reach out to Micheal and Frank today seeing how I only have 5 days to work a miracle here.

I'll keep you posted

Thanks and Be Well,
Todd

[Evan Bedard]

No problem Todd, yes it was an internal (or in-house modification) that you received back in 2009. Have they given you a decision for HAMP? If you never were in process for HAMP when you received the mod back in 2009 they should be reviewing your account for the program now.. To qualify for a modification under HAMP, you must:

-Be the owner-occupant of a one- to four-unit home.
-Have an unpaid principal balance that is equal to or less than:
o 1 Unit: $729,750
o 2 Units: $934,200
o 3 Units: $1,129,250
o 4 Units: $1,403,400
-Have a first lien mortgage that was originated on or before January 1, 2009.
-Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
-Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

If you do not meet these guidelines it is important you tell them you want to go for another in-house modification so you do waste any time..

[smallie]

Dear Evan,

Yes I do meet all of the criteria for the HAMP program and have sent the documentation over and over stating our case. My wife and I mortgage is 40%+ of our gross monthly income. My current loan "Homeowner Support Specialist" Ms. Jena Brown told me over the phone initially that I did not quailify because I was "current". I explained to her that I did qualify based on my current decreased income over the last 9 months.....sent her all the documentation proving this and have called her at least twice a week....she finally admitted to me the other day that underwriters are busy with clients in foreclosure......I told her "I'm on my way!!!!! Thanks to Citi not working with me the last year!!!!.

I've exhausted all my LOC to keep current. Dumb!!!!~ I know now.

Working on my email to the two Gentlemen right now.....hopefully they can help.

Delinquent in 5 days.....I'm not even close this month. I've been working w/ the debt councilers from "Greenpath" at the government site. They know and have documented my monthly shortage....even sent me a confirmation email of this.

I'll call them again after this email

Todd

[Evan Bedard]

I'm very sorry to hear this Todd, it is true many times they will review accounts in default much quicker than those who are current. But again this is not always the case and many times it will depend on the person who has been assigned to your account. Hopefully one of the two gentlemen can get some attention brought to your account because it should not take more than 60 days or so to get out of underwriting.