Loan Modification under hardship program and Credit history

[manavs]

I have my home loan with CITI Mortgage for the last 5 years with high interest rate under two loans. This made my financial situation tough with no savings left. Working with CITI for loan modification under Hardship program. Would like to know what will be the impact on my credit history? Is it going to affect if I change my job and for kids who are going to be in college in next 3 years? Please advice

[Evan Bedard]

I have my home loan with CITI Mortgage for the last 5 years with high interest rate under two loans. This made my financial situation tough with no savings left. Working with CITI for loan modification under Hardship program. Would like to know what will be the impact on my credit history? Is it going to affect if I change my job and for kids who are going to be in college in next 3 years? Please advice

Welcome manavs and thanks for joining the community.

If you do not miss any mortgage payments a loan modification MAY not have any impact on your credit rating. I'm not too sure if you are aware of HAMP, but when you apply for a modification Citi is going to first review your account for this program.

For the Home Affordable Modification Program (HAMP) your mortgage payment must be greater than 31% of your gross monthly income to qualify for this program. Below are the basic eligibility requirements for this program:

-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 a regular in-house modification so you do not waste months of your time. For an in-house modification the requirements above will not apply as almost any type of mortgage or loan amount can qualify, even if your payment is below 31% of your gross monthly income. Please feel free to join in on other threads as most members here are homeowners like yourself pursuing some type of loan workout.

[hangtough]

If you are late, yes, that effects your credit score and also when you modify/accepting a hardship effects your score as well. They warned me about this when I got the documents from Citi but IMO, if you need the help, you need the help. A credit score can be repaired over time.

[Evan Bedard]

If you are late, yes, that effects your credit score and also when you modify/accepting a hardship effects your score as well. They warned me about this when I got the documents from Citi but IMO, if you need the help, you need the help. A credit score can be repaired over time.

If you do not miss any payments prior to receiving a loan mod whether it is a regular in-house modification or the trial period for HAMP your credit should not be affected. Sometimes they will end up reporting a borrower's account late once they begin the trial period, but once a permanent modification is achieved you can dispute this marks and get them removed as long as you can show they were no late payments prior to being offered a mod under the program..

[Sean_]

Hello,
I am in the process of trying to get a loan mod. I have submitted all the requested documentation and send copies of my bank statements and paystubs regularly. I don’t recall the rep saying anything about HAMP and am not sure if I am in that program or not. I seem to be in limbo waiting on the underwriter to make a decision. I wish I would have found this site prior. Looking at the eligibility requirements for HAMP I think we make a little too much (now)to qualify and now I am really shaken up... We are currently in pre-foreclosure and have no sale date. Is there any chance we could get the loan mod? If we don’t will they offer up an in-house refi? This loan is a fanny mae and was wondering if I should contact them and can they help at all? And every time I contact CITI they offer to setup an appointment with a HUD adviser. Should I do that? Also wondered if getting a lawyer is necessary?

Thanks for your advice!

[Cat Damiano]

Hi Sean_,



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

Fannie Mae does have their own modification program for those that are denied a HAMP modification. You may want to escalate your file to the executive team to see where you are at in the process.

They can be reached here;

Email address: homeownerhelp@citi.com Phone Number: 1-866-915-9417 Option 4 CitiMortgage Executive Response Team (1-636-261-7200) Michael Cardace michael.cardace@citi.com Frank Eliason frank.eliason@citi.com

[evytucker]

If you do not miss any payments prior to receiving a loan mod whether it is a regular in-house modification or the trial period for HAMP your credit should not be affected. Sometimes they will end up reporting a borrower's account late once they begin the trial period, but once a permanent modification is achieved you can dispute this marks and get them removed as long as you can show they were no late payments prior to being offered a mod under the program..

How accurate is this statement-- because I am going throgh an in house mod trial with HSBC and my credit score is becoming severely deliquent-- despite I have never been late including my regular payment and my now trial mod? wHAT DO i DO?

[Evan Bedard]

How accurate is this statement-- because I am going throgh an in house mod trial with HSBC and my credit score is becoming severely deliquent-- despite I have never been late including my regular payment and my now trial mod? wHAT DO i DO?

How many months were you on the trial period before HSBC offered the permanent modification?

[evytucker]

How many months were you on the trial period before HSBC offered the permanent modification?

This is my first trial period-- March 1st, April 1st and May 1st-- then June 1st per HSBC I will receive perm. mod. I had 1/2 payments prior due to Sandy Disaster -- roof badly damage-- have 2 mortage with HSBC-- have been denied mortage mod since 2009-- finally getting it, however they had stated in Nov-Dec during the 1/2 pymts they would suppress info to credit bureau-- checked my credit and this is not the case. Spoke to some-one at HSBC yesterday-- stated to fax the report to them-- I did-- we will see what happens.

[Evan Bedard]

I had 1/2 payments prior due to Sandy Disaster -- roof badly damage-- have 2 mortage with HSBC-- have been denied mortage mod since 2009-- finally getting it, however they had stated in Nov-Dec during the 1/2 pymts they would suppress info to credit bureau

I believe this is the issue you are enduring here, they seem to have reported those 1/2 payments during past months to the credit bureaus and you may need to dispute this with each credit bureau to have them removed. Did you have a contract in writing allowing you to make 1/2 payments following the disaster?

[evytucker]

I believe this is the issue you are enduring here, they seem to have reported those 1/2 payments during past months to the credit bureaus and you may need to dispute this with each credit bureau to have them removed. Did you have a contract in writing allowing you to make 1/2 payments following the disaster?

I do not have any thing in writing-- I have a contact person who stated this would be the case--- I email the contact person, and she told me to fax over the credit report to her and she will forward it to the right department--- I have also sent in a dispute to all 3 bureaus. This is a NIGHTMARE. In addition during the storm the Govenor had request all banks to postponed waive fees.....

[Evan Bedard]

I do not have any thing in writing-- I have a contact person who stated this would be the case--- I email the contact person, and she told me to fax over the credit report to her and she will forward it to the right department--- I have also sent in a dispute to all 3 bureaus. This is a NIGHTMARE. In addition during the storm the Govenor had request all banks to postponed waive fees.....

They have access to your credit report so I would request to speak with a supervisor or manager and do not just rely on the rep assigned to your case. Let them know that your rep encouraged you to make 1/2 payments following the disaster and you need them to report your account accordingly. .. Be very careful when anyone encourages you not to make payments or says you can make reduced payments without having a valid agreement.

[evytucker]

They have access to your credit report so I would request to speak with a supervisor or manager and do not just rely on the rep assigned to your case. Let them know that your rep encouraged you to make 1/2 payments following the disaster and you need them to report your account accordingly. Unfortunately, these reps can basically say as they please (over the phone) and it is not uncommon for them to give false information or lead borrowers down the wrong path.. Be very careful when any rep encourages you not to make payments or says you can make reduced payments without having a valid agreement.

You are absolutely right, I am going to follow up tommorrow and let you know what happens. Presently I am getting 8 letters almost weekly staing I am 109 days late as of March 20th, 2013.

[Evan Bedard]

I hope you were able to make some progress to get this issue resolved evytucker!

[evytucker]

I hope you were able to make some progress to get this issue resolved evytucker!

I contacted the individual I have been working with at HSBC-- she told me to fax a copy of the deliquency report so she would be able to send it to the correct department to have it fixed--- they did, I received a letter on Monday dated 3/22/13, that stated it was corrected and sent to the 3 bureaus including CBCInnovis credit agencies, and the deliquency related to payment was removed. "please allow thirty days for the credit reporting agencies to adjust your profile... you may use this letter as confirmation of your current status..." I am so happy-- THANK YOU FOR YOUR INPUT. Now I made 4 copies just for keepsake.! June 1st will be the perm-mod-- I am thrilled but last mth a flyer was placed on my door-- showing the house next door sold for $325K-- and then I receive a letter from NYC finance stating our house is valued at 317K taking Sandy disaster into consideration. Yet here I am with a 450K mortage, (2 HSBC loan) with 4% for the large one and 2% now given for the 2nd loan--- well.... I guess that's the best we can do.

[evytucker]

I contacted the individual I have been working with at HSBC-- she told me to fax a copy of the deliquency report so she would be able to send it to the correct department to have it fixed--- they did, I received a letter on Monday dated 3/22/13, that stated it was corrected and sent to the 3 bureaus including CBCInnovis credit agencies, and the deliquency related to payment was removed. "please allow thirty days for the credit reporting agencies to adjust your profile... you may use this letter as confirmation of your current status..." I am so happy-- THANK YOU FOR YOUR INPUT. Now I made 4 copies just for keepsake.! June 1st will be the perm-mod-- I am thrilled but last mth a flyer was placed on my door-- showing the house next door sold for $325K-- and then I receive a letter from NYC finance stating our house is valued at 317K taking Sandy disaster into consideration. Yet here I am with a 450K mortage, (2 HSBC loan) with 4% for the large one and 2% now given for the 2nd loan--- well.... I guess that's the best we can do.

checked one of my credit report--- Experian--still shows 60 days late--- I'll follow up IN 30 DAYS and see

[Evan Bedard]

I contacted the individual I have been working with at HSBC-- she told me to fax a copy of the deliquency report so she would be able to send it to the correct department to have it fixed--- they did, I received a letter on Monday dated 3/22/13, that stated it was corrected and sent to the 3 bureaus including CBCInnovis credit agencies, and the deliquency related to payment was removed. "please allow thirty days for the credit reporting agencies to adjust your profile... you may use this letter as confirmation of your current status..." I am so happy-- THANK YOU FOR YOUR INPUT. Now I made 4 copies just for keepsake.! June 1st will be the perm-mod-- I am thrilled but last mth a flyer was placed on my door-- showing the house next door sold for $325K-- and then I receive a letter from NYC finance stating our house is valued at 317K taking Sandy disaster into consideration. Yet here I am with a 450K mortage, (2 HSBC loan) with 4% for the large one and 2% now given for the 2nd loan--- well.... I guess that's the best we can do.

That sounds very promising and I do hope all three reports get rectified in a timely matter! Keep in mind that you are entitled to one free copy of your credit report per year from all 3 reporting bureaus at annualcreditreport.com.

The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to credit reporting companies.

To order, visit annualcreditreport.com, call 1-877-322-8228. Or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.