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.
Interest rate 6.5%
Owner: CMALT REMIC (HSBC?)
Second Mort 20% - POST MOD
30 year fixed
Interest Rate: 2%
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?