I have been a follower of your forums for over 6 months now. I have found great help in reading about people in our situation.
I lost my full time job in Oct 2008. My husband lost his job Feb end -2009. I have been working as a consultant since April 2009. I contacted Citibank around the 5th of March and countless phone calls later I was told on 15th May that we should qualify for the modification program. They ordered an appraisal for our property. On 23rd June when I called to find out if they had moved forward they told me we were approved for the trail modification and our payment would go down from 5300 to about 2945 a month based on 9000$ monthly income pretax. We made 4 trail payments - all on time. We sent in paperwork mid September explaining that I was working as a consultant and between my earnings and my husbands unemployment we were bringing in about 9400 before taxes. I had about 24000 last month in my business account since I owe about 10-12000 to the IRS for self employment taxes. October 19th I was informed that the underwriters would review my file and call me. On 29th October I received a letter asking for resubmitting 4506T since the one submitted earlier had expired. We sent that out on the 30th of October.
On Nov 1st I called in to make my November payment - the 5th trail payment and was informed that we were declined the HAMP program since I have 24000 in my bank. Never mind that after paying the IRS and the 5th trial I would be left with 9000 and I would still owe citibank another 12000 if not approved for hamp!!!. We have 1st mortgage of 675,000 and 2nd of 100,000. Our house today is worth 740,000 at best. The appraisal came in around that in June 2009 but prices have fallen since that. We would really like to keep the house we are in but just cannot afford 5300 in payments for the first mortgage. I explained to the citibank person that I needed to speak to a supervisor - but he said that it would not be possible today and I should call back tomorrow. He said we were denied on the 29th of October and we should be receiving the mail regarding that.
Please help me figure out what I need to do now. I am really worried that we will not be able to keep the house. We had put down all our saving to buy this house 4 years ago. We were bringing in 15000 every month between the two of us when we bought the house. We thought of ourselves as savvy home buyers who had bought a small place in a good school district in the NY Metro area (Its a small ranch - nothing over the top) We also had another child 2 years back and then the financial meltdown took away our earnings....
At this point it seems loan safe is our only hope!!