VA loan serviced by CitiMortgage

**fleurdemimi** · 05-19-2012, 11:17 PM

VA loan is in foreclosure and seriously underwater. Ex-husband is primary since he's the veteran. Loan and deed are in both my name and ex-husband's name. There has been no settlement of the community property. My 14-y/o son and I live in the home, which is in Louisiana. My ex (father of our son) lives in Michigan and simply decided to stop paying the note, without even warning me. My ex wants his name off both mortgage and deed, so he will not be likely to agree to a loan mod. The only other options available on VA loans, according to Citi, are short sale and deed in lieu. Does anyone know of any other options on VA loans? Are VA loans not eligible for principal reduction?

My son and I are currently living in limbo. I'm waiting for the public sale to be set. I'm so tired of fighting this battle, but if I can avoid uprooting my son, I'm willing to consider any other possible options to save our home.

Any advice or assistance will be appreciated.

~MiMi

**Cat Damiano** · 05-20-2012, 10:10 AM

HI MiMi,

Welcome to the forum and thank you for joining.........

The modification options that are available are not going to reduce the principal by itself, the purpose of those programs is to get to an affordable payment. Most that want to remain in the home just want to be able to have an affordable payment which in many cases works out to being less than the amount to rent so the property being underwater isn't factored into that scenario.

Since you are also on the loan, have you tried reaching out directly to the VA to see if the options that Citi is giving are the only options that VA has available on your loan?

Veterans with VA-guaranteed home loans can call (877) 827-3702 to reach the nearest Loan
Guaranty office where loan specialists are prepared to discuss potential ways to help save the
loan.

Here are the options available to VA loans;

Foreclosure Alternatives

http://www.benefits.va.gov/homeloans..._Servicers.pdf

**fleurdemimi** · 05-23-2012, 12:53 PM

Thank you for your reply. Several months ago I reached out to the VA, but was told their only concern was that the veteran had a place to live. Since my ex has a home in Michigan, the VA cannot force him to assist with the mortgage on the property his son and I reside in. Minor children of veterans receive no consideration. The VA rep agreed it was not morally right on my ex's part, but there is no policy that protects the home of children whose veteran parents simply walk away and don't look back. Yes, my ex will lose his VA certificate and his credit is also ruined, but that doesn't seem to bother him, either.

I have also confirmed that there are fewer options to assist homeowners with VA loans, if the veteran does not reside in the property as his/her primary residence. My ex must agree to a loan mod, so I'm not sure if I should even send (for the umpteenth time) the information and documents Citi recently requested to start the whole loan mod process over again. I don't qualify on my income alone, and my ex wants his name off both the mortgage and the deed.

Finally, I was told by both VA and HUD reps that the only advice they could give me was to contact the Red Cross, Salvation Army, and Daughters of Charity to find out if there are any homeless shelters my son and I can get into.

Things are looking bleaker by the minute, and I just feel sick.

~MiMi

**Cat Damiano** · 05-23-2012, 02:06 PM

I am so sorry that they are unwilling to help the family of the veteran, that is seriously messed up. There really isn't much more advice I can give other than to contact the following as the new additions that were put into place for the service members relief act are supposed to include dependents of service members as well. I know that things look bleak, and they may not be able to help, but you have to try for you son. They may also be able to at least point you in a better direction than VA and HUD apparently have. When speaking to them also ask about the Cash For Keys program in which you could be given compensation normally averaging around 3k for a possible deed in lieu so that you can find an apartment for you and your son.

Here is the contact information that applies to the dependents of service members as well as the information that had been added;

• Any Servicemember who believes his or her rights were violated by Bank of America, J.P. Morgan Chase, Ally, Citi, or Wells Fargo can contact the Justice Department directly at 1-800-896-7743. The Department will have access to information to determine whether or not servicemembers are victims and the settlement requires those individuals to be contacted.

• Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance office. For the relevant contact information, please consult the military legal assistance office locator at Armed Forces Legal Assistance (AFLA) and click on the Legal Services Locator.

• Additional information about the Justice Department's enforcement of the SCRA and the other laws protecting servicemembers is available at www.servicemembers.gov.

FACT SHEET: President Obama Announces New Steps to Provide Housing Relief to Veterans and Servicemembers and Help More Responsible Homeowners Refinance | The White House

**fleurdemimi** · 05-23-2012, 02:35 PM

Thanks, I'll check into that new info re: dependents of veterans. It certainly can't hurt. If all else fails and the option is still available, I'll probably go for the cash for keys deal.

Beside the fact that my son may lose the only home he's ever known, it also breaks my heart that he may also lose his 14 y/o dog, who we've had since he was 1 y/o (he'll be 15 y/o next month). She is also the most effective and dependable "security system" -- bar none. Because she's mixed with a restricted breed, most, if not all, apartments will not accept her.

**fleurdemimi** · 05-26-2012, 12:24 PM

Thanks for all of the links and info. Unfortunately, the veteran has to be the contact person and live in the home. I did write to the White House to advise them of the donut hole into which dependents of veterans fall. So, we'll definitely lose the house, and I have no idea where we'll go. The thought of telling my son his dog has to be put down is ripping my heart out. He's got enough anger issues with his father. This just might put things over the top.

It's in God's hands now...

**fleurdemimi** · 05-29-2012, 09:56 AM

I got the following email this a.m. from Stephanie Todd of CitiMortgage:

We don’t participate for cash for keys at citi mortgage. Maybe your VA representative can assist you with that. You are able to do a short sale if you would like, please let me know what you are going to do. Thank you.

I wasn't aware I had a VA rep. And why does Citi *not* participate in cash for keys? I thought all loan servicers were following the same basic guidelines and offering the same options.

**Cat Damiano** · 05-29-2012, 10:00 AM

The investor, which is the VA, on your loan may offer the C4K, but not all are required to do so. So you should see if you can get the VA rep contact info if you have not dealt with them at all and try to ask them about the program.

**fleurdemimi** · 05-29-2012, 01:07 PM

My XH may know who the VA rep is, but he's not giving up that info. And neither is Citi.

I contacted the VA some time back, but just spoke to whoever answered the call when I finally got transferred to the right dept.

I've become much more disgusted with the VA than with Citi -- and that's sayin' somethin'!

**Cat Damiano** · 05-30-2012, 09:46 AM

rightfully so, it is a sad situation when the VA offers no help to dependants of military members even for assistance with moving expenses.

**fleurdemimi** · 06-17-2012, 05:31 PM

Well, it's time for me to jump off the hampster wheel. I need to get my son settled somewhere so we can register him in the appropriate high school.

My question now is...Do we have to be out of the house before the judicial sale date? The sale is set for 7/25/12, according to the Sheriff's website.

Thanks for any guidance.

~MiMi

**Cat Damiano** · 06-18-2012, 09:07 AM

You shouldn't, once the property sells, you should be contacted by an agent and given a time frame to move and also possibly offered cash for keys assistance. If you leave before the sale, you may not have that opportunity. After everything you have been through, if it were me, I would have my things ready to go and see if the agent makes an offer, if not, at that time you will be ready to move.