Pursuing Mod on 1st after 2nd granted - Current

[antennaewaving]

Team,
Here's my facts. Thanks in advance for any guidance you can provide on getting CITI to mod the first mortgage. I hope my details help someone else out.

• Current on both.
• Income has increased since I got the first and second liens at the same time in 2007.
• Home value is about $200-210k
• Total loans 1st and 2nd is $262k

First Mort 80%
Fixed 10 year interest only - Will adjust to include principal of addl $400/mo in 2017.
Balance 212k
Interest rate 6.5%
Servicer: Citi
Owner: CMALT REMIC (HSBC?)

Second Mort 20% - POST MOD
30 year fixed
Balance 50k
Interest Rate: 2%
Servicer: Citi
Owner: ???

I submitted modification docs to Citi last summer (2011) and was APPROVED for mod on the 2nd only as indicated above.
Hardships: Out of work for 1.5 months & underwater

I was DENIED on modding the first with these reasons in 3 separate letters from Citi that were all dated the same:

1. "loan must be in default or imminent danger of default"
2. "Default Not Imminent....You have sufficient net income to pay your current mortgage payment"
3. "Citi Supplemental 2nd Lien program requirements not met: FHA, VA, or Rural Housing loans not eligible."
4. "Citi Supplemental Modification requirements not met: Loan must be in default, or imminent default, or combined Housing to Income ration must be greater than 49%.
5. "Ineligible borrower. We are unable to offer you a Home Affordable Modification because your current monthly housing expense.....is less than or equal to 31% of your gross monthly income."

We need to move sooner or later as our house is too small for the growing family and the neighborhood is not a safe place to raise babies. We are considering renting for a small loss or selling if we can somehow reduce the principal. Fortunately the market is not as weak as other places in our area and housing values have been coming back slowly lately. That said their are foreclosures on the street I can see a vacant foreclosure through my kitchen window.

Our credit is excellent and we haven't missed a payment since 2007 (have been late less than 30 days.) I believe this plus my income increase is working against us.

What should we do? Miss payments intentionally? Lawyer up to help negotiations?

[Cat Damiano]

Hi antennaewaving,


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


Unfortunately not being able to show imminent default is what may be working against you, the lender will see it as you are continuing to be able to pay so a modification wouldn't be needed.


A borrower that is current or has only one payment due and unpaid by the end of the month inwhich it is due and who contacts the servicer to request HAMP consideration must be evaluatedto determine if he or she is at risk of imminent default. Each servicer must have written standardsfor determining imminent default that are consistent with applicable contractual agreements andaccounting standards and must apply the standards equally to all borrowers.
When making an imminent default determination, the servicer must evaluate the borrower’shardship as well as the condition of and circumstances affecting the property securing themortgage loan. The servicer must consider the borrower’s financial condition, liquid assets,liabilities, combined monthly income from wages and all other identified sources of income,monthly obligations (including personal debts, revolving accounts, and installment loans), and areasonable allowance for living expenses such as food, utilities, etc. The hardship and financialcondition of the borrower must be verified through documentation.
A servicer must document in its servicing system and/or mortgage file the basis for itsdetermination that a payment default is imminent and retain all documentation used to reach thisconclusion.




You can try contacting the executive team at Citi to see if they can escalate a review of your file and if they can help with perhaps an inhouse modification, 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