advice needed: to pursue principal reduction?

[underwaterinCA_]

Hello all - thanks for this great resource! It is really useful.
I have a mortgage with Citi that got modified July 2011 due to my divorce. They were great about it. However, I still struggle to make payments, though I barely manage. When I called in a few weeks ago, I was told that I qualified for a principal reduction since (a) citi owned the loan and (b) the house was underwater. They said there were no income restrictions on this offer, and that the above were the only two conditions for the offer.
When I called in today, I was told I will not be offered the p/reduction because I had received help in the past two years. That seems to be a new pre-condition.
Any advice? I already know that I will not qualify for another loan mod, but I was hoping for the p/reduction since I am severely underwater, and can barely afford payments.
If anyone wants any info on my loan mod process last year, please ask - am happy to help!
thanks!

[Evan Bedard]

When I called in today, I was told I will not be offered the p/reduction because I had received help in the past two years. That seems to be a new pre-condition.
Any advice? I already know that I will not qualify for another loan mod, but I was hoping for the p/reduction since I am severely underwater, and can barely afford payments.
If anyone wants any info on my loan mod process last year, please ask - am happy to help!

Welcome and thanks for joining the community.

Thanks for offering to help other members here who are currently trying to modify their mortgage it is greatly appreciated! From the "frequently asked questions" page on Citi's website in regards to the national mortgage settlement it does state that loans that were previously modified may still be eligible for assistance under the settlement..

https://www.citimortgage.com/Mortgag...2712V2_SEO.pdf

"My loan was modified before. Can I still get help?

You may be eligible for additional assistance if your loan was previously modified. Solutions will be available to borrowers with prior modifications who meet other eligibility requirements. Please call 1-866-272-4749† for assistance. Hours of operation are Mon-Fri 8 AM to Midnight ET and Sat-Sun 8 AM to 8 PM ET. We will evaluate you for eligibility under the settlement programs. In addition to the settlement, CitiMortgage, Inc. will continue to provide solutions for borrowers that are in need of assistance. If you need more immediate assistance, we may be able to help you lower your payment now."

[underwaterinCA_]

Evan - thanks for your reply. Unfortunately, I already contacted Citi and they have told me that the only reason I am ineligible is because I was helped in the past two years. All other eligibility conditions have been met.

Any community advice re: next steps? Should I consider strategic default on the primary mortgage? Right now, it is very tight but affordable.

thanks all.

Welcome and thanks for joining the community.

Thanks for offering to help other members here who are currently trying to modify their mortgage it is greatly appreciated! From the "frequently asked questions" page on Citi's website in regards to the national mortgage settlement it does state that loans that were previously modified may still be eligible for assistance under the settlement..

https://www.citimortgage.com/Mortgag...2712V2_SEO.pdf

"My loan was modified before. Can I still get help?

You may be eligible for additional assistance if your loan was previously modified. Solutions will be available to borrowers with prior modifications who meet other eligibility requirements. Please call 1-866-272-4749† for assistance. Hours of operation are Mon-Fri 8 AM to Midnight ET and Sat-Sun 8 AM to 8 PM ET. We will evaluate you for eligibility under the settlement programs. In addition to the settlement, CitiMortgage, Inc. will continue to provide solutions for borrowers that are in need of assistance. If you need more immediate assistance, we may be able to help you lower your payment now."

[Evan Bedard]

Any community advice re: next steps? Should I consider strategic default on the primary mortgage? Right now, it is very tight but affordable.

I'm sorry to hear that I was not aware you could not qualify for the settlement if you received a modification within the last two years.. Maybe you should try speaking with the executive's team to see if the rep you spoke with was correct about this fact. Here is Citi's executive contact:

1-718-248-0847

[hangtough]

Why will you not qualify for another mod?

[underwaterinCA_]

I'm sorry to hear that I was not aware you could not qualify for the settlement if you received a modification within the last two years.. Maybe you should try speaking with the executive's team to see if the rep you spoke with was correct about this fact. Here is Citi's executive contact:

1-718-248-0847

Thank you - I will call them and report back either way!

[underwaterinCA_]

Why will you not qualify for another mod?

hangtough - I am told I will not qualify because I was helped (with a modification) within the past two years. My situation meets all other criteria except this. However, this criteria is not commonly known or accepted....hence my question to this forum....thanks.

[FontanaFire]

Where did you hear that there were no income restrictions to get principal reduced when your house is underwater? I have a Citi mortgage, 40% under in Fontana, CA (where our county gov't is actually considering taking over all underwater mortgages by eminant domain, lol!) and after first telling me I didn't qualify for any mod due to my income, Citi is now saying that I "may" qualify, but I have to send in my bank accounts, pay stubs, first born child etc. Citi****s.

[Evan Bedard]

Why will you not qualify for another mod?

This modification is specifically for the national mortgage settlement.. Generally, for any type of loan modification you can only receive one permanent mod within a 12 month period. We have many members here who have received more than one permanent mod..

[Evan Bedard]

Where did you hear that there were no income restrictions to get principal reduced when your house is underwater? I have a Citi mortgage, 40% under in Fontana, CA (where our county gov't is actually considering taking over all underwater mortgages by eminant domain, lol!) and after first telling me I didn't qualify for any mod due to my income, Citi is now saying that I "may" qualify, but I have to send in my bank accounts, pay stubs, first born child etc. Citi****s.

Hey Fontanafire,

Do you happen to know who owns your mortgage? For the national mortgage settlement with Citi one of their requirements is that Citimortgage must OWN and service your mortgage to qualify for the program.

https://www.citimortgage.com/Mortgag...age=settlement
Eligibility Overview

Eligibility guidelines for National Mortgage Settlement assistance programs require that your mortgage is owned and serviced by CitiMortgage. Loans that are owned by others, such as Freddie Mac or Fannie Mae, are not eligible under the Settlement guidelines, but may qualify for other Citi solutions.