Citi Mortgage Notice Of Default Help

[ShadRI]

State: Rhode Island

80/20 mortgage: House purchased in 2006 Living in the house and would like to keep it.

1st Mortgage Bank of America: $209,500 5.375 refinanced Jan. 2010: current

2nd Mortgage CitiMortgage: $53,000 8.5% 15 yr balloon pmt Original Loan for purchase: 45 days late

Estimated Value not Official: $175,000


Ive been reading around the site for about 2 months and I have also submitted financials in the past. Ive been ignoring the phone calls and the letters until yesterday it seems I have received a NOD. The heading is Notice of Default and Mortgagee's Right To Foreclose and Notice of Availability of Mortgage Counseling Services. Only my name is on both mortgages. My wife also received the same letter with her maiden name because that's how it appeared on the deed when we bought the house. Is this a serious letter or is this just a scare tactic to get me to pay? My first mortgage is underwater so the 2nd is totally underwater. Wouldn't Citimortgage realize they wont collect? Any help is appreciated and thank you.

[done with citi]

Yes..it is serious, contact them immediately, Citimortgage will collect when they foreclose and write if off as loss. You will have to prove hardship and not have any reserve cash on hand that is equal to 3 months of payments. If they determine that you have strategically defaulted they will not help you. Might be best to get a lawyer involved.

[ShadRI]

How can CitiMortgage foreclose and collect when they are the 2nd lien and there will not be enough money left to pay the 1st lien in full?

[RippedOff]

How does one 'prove' that they do not have cash on hand? Couldn't you have it in a hidden account somewhere?